In the challenging landscape of transportation insurance, delivering value isn't just about finding coverage—it's about building relationships and leveraging expertise to create tailored solutions. When a devastating truck fire threatens to derail insurance costs, most companies brace for skyrocketing premiums. But for one Missouri-based transportation company, this potential crisis became a testament to the power of strategic insurance partnerships. Transportation Consultant, Carly Hermann and Account Administrator, Deanna Gudenkauf partnered together with their client and turned what could have been a financial setback into an unexpected win.
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Understanding the Client's Needs
At the beginning of our partnership, the company consisted of 6 trucks and 16 trailers, specializing in long-haul refrigerated transport. Like most motor carriers at this time, pricing is a major concern with freight rates being down and insurance pricing rapidly on the rise. Our team prioritized finding exceptional reefer coverage without limitations on mechanical breakdown or driver error, while avoiding exclusions that could affect hard liquor transport. The client also emphasized the importance of efficient communication, rapid certificate processing, instant cargo limit updates online, and comprehensive documentation for shipper contract requirements.
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Navigating Renewal Challenges
After working together for nearly four months, an unexpected claim occurred that created challenges for both the motor carrier and our agency. A truck fire resulted in a total loss, reducing the company's operational fleet and raising concerns about future renewal rates in an already challenging marketplace. Despite this significant loss during a policy year—a $65,000 claim resulting in a 74% loss ratio—the carrier's renewal offer came in at $93,273. While this increase fell below the industry average, when considering the complete pricing picture, motor carriers face the frustration of finding an extra $6,000.
Creating a Strategic Solution
Our approach combined several key elements to address these challenges:
Comprehensive market exploration to identify optimal coverage options
Strategic separation of cargo coverage to maximize cost efficiency
Leveraging strong carrier relationships to negotiate better terms
Collaborative teamwork between producer and account administration
Three months before renewal, we developed a comprehensive plan. This included identifying promising markets, preparing the carrier's narrative, and building a compelling case for why they deserved better terms than their data might suggest. Through careful negotiation and close collaboration with the client on expectations, we achieved a breakthrough solution. The final package delivered premium savings of $16,488, reducing the total premium to $76,784.43.
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"Everyone has their own perception of price savings," Carly notes, "but to be able to come in below the current pricing and put money back in a client's pocket, it's the best feeling as an agent."
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Looking Forward
This success story exemplifies our commitment to delivering value beyond basic insurance coverage. By working closely with motor carriers to effectively tell their story, leveraging market expertise, maintaining strong carrier relationships, and providing dedicated customer service, we continue to demonstrate our value as a trusted partner in transportation insurance.
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The most rewarding aspect of this renewal wasn't just the significant premium savings—it was proving that even in challenging circumstances, with the right approach and team, we can exceed client expectations and strengthen long-term partnerships.
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Are you interested in learning more about how we can help optimize your transportation insurance program? Contact our team today to discuss your specific needs.