Running a trucking business today is not easy. Fuel costs, repairs, driver shortages, and insurance rates all affect your bottom line. As insurance advisors working with trucking companies every day, we often see two issues that can increase insurance costs or create problems with coverage: open claims and drivers without a valid U.S. license.
Understanding these issues can help you protect your trucking business and avoid surprises during renewal.
What Is an Open Claim?
An open claim is an accident claim that has not been fully completed by the insurance company.
This usually happens when:
- The truck is still being repaired
- Medical bills are still being processed
- The insurance company is still determining fault
Even if the accident happened several months ago, if the claim is still open, insurance companies consider it an active risk.
Because the final cost of the claim is still unknown, insurance carriers may become cautious. This can sometimes result in higher renewal premiums or fewer insurance options until the claim is officially closed.
Drivers Without a U.S. CDL
Another important issue insurance companies review is whether drivers have a valid U.S. commercial driver’s license (CDL).
Most insurance carriers require drivers to have:
- A valid U.S. CDL
- A driving record that can be verified in the United States
If a driver is operating with only an international license or does not have proper documentation, insurance companies may:
- Decline coverage
- Charge higher premiums
- Place restrictions on the policy
In the event of an accident, licensing issues can also create complications when a claim is filed.
How Trucking Companies Can Protect Themselves
There are several steps trucking companies can take to keep their insurance stable and avoid unnecessary risks:
- Hire drivers with valid U.S. CDL licenses
- Keep driver qualification files updated
- Handle accidents and claims quickly and professionally
- Follow safety and compliance requirements
These steps show insurance companies that your business is responsible and well managed. This can help improve your insurance options over time.
Our Role as Your Insurance Advisor
At Hawk’s Bay Insurance Group, we work closely with trucking companies to help them understand how insurance companies evaluate risk. Our goal is to support you, answer your questions, and help you avoid situations that can increase your insurance costs.
If you would like us to review your trucking insurance policy, claims history, or driver requirements, our team is always happy to assist.