Did you see the latest news on commercial Liability Limits increasing to 2 million dollars?
The amendment to see the increase of the minimum limit of liability from $750,000 to $2,000,000 has been approved through the House of Representatives. This is being called the “INVEST Act” and it is truly proving to have quite the following. More than ever we are seeing catastrophic losses that show minimum limits are not enough for the families that have experienced a loss due to a truck crash.
Transportation attorneys advertise tirelessly on all forms of media to find a case worth pursuing. These attorneys know that there is substantial money in the industry and with minimum limits these verdicts prove that it’s not enough to buy the minimum. The increase in limits will hopefully help with the safety and protection of businesses, but also combat inflation as the current limit of liability was set almost 40 years ago.
Although the act itself will not be put into effect unless it passes through the House and Senate, regardless of what results from this new act we need to be aware that the Trucking Industry as a whole is facing a wake-up call that safety needs to be the highest priority.
You need to ask the tougher questions. What are you doing to prevent crashes with your business? Are you documenting the material and training with each driver? Is there a culture built among safety? We are all in the same boat and in doing so we all need to be safe to keep costs down across the board. The more losses in the industry the higher the rates will go. Are you being cautious as to who gets behind the wheel in your tractor?
Ensuring that your drivers have the experience they say they do and confirming this experience through multiple factors of verification is another way to protect your operation. The industry as a whole has mixed feelings among this topic like the American Trucking Association and Owner Operator Independent Drivers Association are against the limit being raised. Insurance premiums come to mind for the smaller operations that are already facing hardships on insurance costs, freight prices, and backhauls.
These associations in the trucking industry feel that the increased limits would raise insurance rates to amounts that many operations wouldn’t be able to afford. This isn’t the first time though that talk of an increased liability limit was brought to the table. In 2017 the Trump Administration reviewed what was being proposed and the details for the need to increase liability limits.
After being further investigated the administration declared that there was not enough evidence to support the increase of required limits. The “Invest Act” is being led by Illinois Rep. Chuy Garcia that is seeking reform to be made into effect as soon as possible. Although as far as a timeline for this change, we could be a ways off from seeing this is mandated. The best thing we can all do is be aware of the changes that may be coming to the industry and how to best handle when these regulations are put into effect.
A great source of information is the website CDL life (https://cdllife.com/) where they keep up to date with information on the Commercial Truck Industry. Also, additional articles should be released if there are any updates on the increase in liability limits.
This topic has been in discussion for years. If these proposed amendments are made they will benefit the safety of others as well as the truck drivers running their operations.
Thank you for taking the time to read this and know that no matter what changes the industry faces we will all get through it together. RJS Truck Insurance is here to help you make the best possible decisions for your trucking business. Please feel free to contact me at firstname.lastname@example.org to discuss.