Dear Expediters, help

[Mike Klev]

Hi guys,

Me and my friend started exp. business. Our company owes only one vehicle (Sprinter van) and we also have 15 contractors with their own vehicles and insurance. Main question is as always - "where to find loads". We worked with Panther but we can take loads only for our vehicle but not for contractors, as Panther requires us to put all vehicles on our insurance and we simply cannot afford it. Moreover those drivers work with other companies as well and they have to have their (but not company) name on insurance. I started calling other companies, but most of them are having the same rule.
Can you please advise any companies which are more flexible on that?
Any help will be greatly appreciated.

P.S All vehicles are Sprinter Vans

Thank you

 

[davekc]

Probably won't like my answer, but here goes. Many changes with regards to insurance are upon us. Carriers as well as shippers don't won't the exposure/liability of a under insured operator. Too many bad things have happened and the industry has woke up. The upside is it pushes out a lot of the rogue operators. Or, "bottom feeders" as I like to call them.
In your case, if you can't afford to have them on because of cost, you must have them get their own commercial insurance. Not a car policy. They should have that anyway if they are hauling for multiple carriers. Shelly at CIS has done many articles on this very subject.
This is #7 installment, but all are a good read that will help you understand the insurance side of things.

Why VOI? Did You Know

 

[Mike Klev]

Thank you very much for your reply.
I guess I forgot to mention that all our contractors have commercial one million $ insurance. The same type of insurance Panther and many other companies require. And they have our company as "additionally insured". I offered to Panther representative to send copies of insurances of all our contractors to them and even add Panther as "additionally insured" to each insurance, but they demand to have all those vehicles on our company's insurance. And it seems a little unreasonable to me as in terms of legal issues it's all the same, each vehicle is insured.

 

[davekc]

In their eyes, they look at you like a carrier and would want them under your policy. Better to chase a carrier than a individual. They as I would also look at that and say, "Why not have the contractor set up with us directly as a partner carrier"? Of course the answer would be you want a cut of the action. Most individuals set up themselves as partner carriers with their own insurance. They essentially are the small carrier. Hope that makes sense.
All of that ensures they have legit operators. If a driver suddenly dropped his policy and you didn't know it, guess what?

 

[Mike Klev]

It definitely makes sense. But those drivers we work with are lost asset for companies like Panther, Load one etc., as they simply don't speak any english and they will never work with these companies individually. But they are outstanding drivers with huge experience and they need us to coordinate and assist them.

 

[Turtle]

The reason Panther requires all of your vehicles to be on your insurance is, in part, because FMCSA regulations also require it.

 

[davekc]

It definitely makes sense. But those drivers we work with are lost asset for companies like Panther, Load one etc., as they simply don't speak any english and they will never work with these companies individually. But they are outstanding drivers with huge experience and they need us to coordinate and assist them.

Outside of the insurance requirements, many carriers are going the route of requiring CDL's for van drivers. That is a potential problem in your situation if they have language barriers.

 

[mdpettrey]

Thank you very much for your reply.
I guess I forgot to mention that all our contractors have commercial one million $ insurance. The same type of insurance Panther and many other companies require. And they have our company as "additionally insured". I offered to Panther representative to send copies of insurances of all our contractors to them and even add Panther as "additionally insured" to each insurance, but they demand to have all those vehicles on our company's insurance. And it seems a little unreasonable to me as in terms of legal issues it's all the same, each vehicle is insured.

Mike Klev your drivers may have the correct insurance and that is great, but the problem is there are lot of "multi carrier" companies out there where the drivers don't have the correct insurance and it puts a huge Liability on the Brokering company. We have seen some scary situations where drivers have had 10% of the coverage that they should have, and it has come back on the load provider and also the shipper. Unfortunately these people who are cheating the system have ruined it for everyone that was actually doing it correctly. The VOI program that TEANA offers will help better understand why it is such a concern. Paying insurance is part of doing business in the Transportation industry, and when people cheat the system it causes increases for everyone across the board. We have been in business 24 years and we have always insured all of our trucks on our policy, not that we like paying that bill every year but again it's part of doing business.

 

[jelliott]

Welcome to my boy Pettrey! As far as what you are saying........NAILED IT!

 

[cheri1122]

It definitely makes sense. But those drivers we work with are lost asset for companies like Panther, Load one etc., as they simply don't speak any english and they will never work with these companies individually. But they are outstanding drivers with huge experience and they need us to coordinate and assist them.

I mean no offense, but those drivers need to learn English. Some work doesn't require it, but our work involves interaction with the shippers & consignees. Inevitably,discrepancies occur, and drivers need to be able to communicate effectively to solve them.

 

[highway star]

Mike Klev your drivers may have the correct insurance and that is great, but the problem is there are lot of "multi carrier" companies out there where the drivers don't have the correct insurance and it puts a huge Liability on the Brokering company. We have seen some scary situations where drivers have had 10% of the coverage that they should have, and it has come back on the load provider and also the shipper. Unfortunately these people who are cheating the system have ruined it for everyone that was actually doing it correctly. The VOI program that TEANA offers will help better understand why it is such a concern. Paying insurance is part of doing business in the Transportation industry, and when people cheat the system it causes increases for everyone across the board. We have been in business 24 years and we have always insured all of our trucks on our policy, not that we like paying that bill every year but again it's part of doing business.

Wow... That actually sounded fairly coherent.

 

[Tennesseahawk]

Wow... That actually sounded fairly coherent.

Notice he changed spelling. Think Julie proofread it?

 

[jelliott]

He signed up 6 years ago and waited for just the right moment to post.....

 

[davekc]

He signed up 6 years ago and waited for just the right moment to post.....

Timing is everything. lol

 

[sbarrett]

He signed up 6 years ago and waited for just the right moment to post.....

I laughed out loud. Pettrey, you know Elliott monitors this site 24/7. He gets alerts anytime someone new comes on so he can check them out.

 

[jelliott]

I laughed out loud. Pettrey, you know Elliott monitors this site 24/7. He gets alerts anytime someone new comes on so he can check them out.

And you point is........ LOL

 

[JohnMueller]

Steve and Mike;

You will discover that there is no one faster to respond to posts on EO than John Elliot. No one. Impossible.

I've tried.

 

[mdpettrey]

I was just living through JKE vicariously the last 6 years! No I didn't have any help and yes I made a spelling correction because I...well never mind. Back to the topic at hand, I am happy to see that the VOI has made some people aware of the issues that have been hurting our expediting community. Highway Star hope you're proud of me for posting my first comment.

 

[sbarrett]

Mueller, with you being a "Moderator"...you probably don't want Pettrey and I on here anyway! LOL
Elliott, you are still Pettrey's hero...
Pettrey, Happy Birthday.

 

[jelliott]

Well to be honest it does make Mueller's life easier. LOL

Just because he wears the "Elliott's My Man" pajamas doesn't mean he believes it in his heart. Granted most likely he does, but still not 100%.

And on that note another shout out to our birthday boy! Happy Bday Boo Bear!

I did find that pic of us accepting the best new album from a over aged boy band picture at the muzic awards......