Top 7 Risks Facing Trucking Businesses and How Insurance Mitigates Them

From unexpected business interruptions to costly automobile accidents, there are several risks that have the potential to put a significant financial strain on a trucking business. As a result, it’s important to maintain various types of commercial insurance that can protect against these trucking business risks and prevent any one loss from bankrupting your company.

Keep reading to learn more about the top risks for trucking companies and what insurance coverage types you need to purchase to account for these risks.

On This Page

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  1. Driver Shortages

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  2. Rising Fuel Costs

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  3. Compliance With Regulations

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  4. Supply Chain Disruptions

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  5. Road Safety and Accidents

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  6. Cybersecurity Threats

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  7. Financial and Operational Risks

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  Trucking Business Risks FAQs

1. Driver Shortages

Getting a new trucking startup off the ground can be difficult since there is generally a greater demand for truck drivers than there are people willing and able to do the work. Even with trucking being one of the most common professions in the United States, there was still a shortage of nearly 80,000 qualified workers in the trucking industry in 2022.^[1]

Unfortunately, the ongoing driver shortage is one of the few trucking industry risks that is actually exacerbated by insurance. When underwriting for commercial trucking coverage, your insurance company will evaluate your employees’ driving records to determine the risk associated with insuring your business. If you struggle to find experienced transport operators and instead have to resort to hiring new truckers or those with poor driving records, you will likely encounter higher insurance premiums

2. Rising Fuel Costs

Although diesel prices are currently trending downward, with average costs being lower in December 2024 than at any time since September 2021, the potential for rising costs is still a significant risk that trucking business owners need to be aware of.^[2] Fuel is an essential resource for truck drivers while also being something they can’t control the price of, so you will always have to build your budget around buying diesel and potentially cut costs elsewhere when fuel prices rise.

If diesel costs start to go up again, one of the best ways you could make extra room in your budget is by shopping around for business insurance. Commercial insurance companies all have different methods for assessing risk and setting premiums, meaning you may be able to find the exact kind of coverage that you already have at a lower rate from a different insurer.

3. Compliance With Regulations

Trucking companies are regulated by the Department of Transportation (DOT), which means that you will need to keep abreast of updated federal guidelines to remain compliant and avoid paying fines. The good news is that most business insurers will offer you a discount if you can show proof of compliance with DOT regulations.^[3]

4. Supply Chain Disruptions

Supply chain disruptions can be financially devastating, especially for small trucking businesses, because they could encounter lost revenue as they have to temporarily halt transporting certain goods and higher fuel costs if the supply chain issue prevents fuel from being delivered throughout the country.

Fortunately, a commercial insurance policy can help out in numerous ways in the event of a supply chain disruption.

For example, contingent business interruption (CBI) insurance can make up for lost profits and extra operational costs if you experience a supply chain disruption due to a sudden peril, like a fire at a supplier’s factory. Meanwhile, supply chain insurance includes coverage for disruptions caused by a much wider range of perils, including labor shortages, public health emergencies and political upheaval.^[4]

In addition, there are multiple coverage types that can protect you in case you are held liable for a supply chain interruption. For example, pollution liability insurance can cover attorney fees and cleanup costs if your business is responsible for creating an environmental hazard, while professional liability insurance can take care of legal expenses if you are sued for failing to meet a contractual obligation amid a supply chain crisis.

5. Road Safety and Accidents

Since they are constantly on the road, truck drivers have an exceptionally high exposure to car accidents. In fact, trucking was the deadliest occupation in the United States in 2017, with more than 75% of all work-related fatalities in the trucking industry occurring due to transportation incidents.^[5] While your insurance company can’t stop your drivers from getting into collisions, it can help your business recover after an accident.

If one of your drivers is responsible for injuring, disabling or killing someone or damaging another person’s property, commercial auto liability insurance can cover hospital treatments, lost wages, death benefits, property repairs and legal expenses, as needed. Meanwhile, physical damage insurance can pay to repair or replace one of your trucks after an accident, and workers’ compensation insurance can cover your employees’ medical and rehabilitation costs.

Other commercial auto insurance coverage types you may need include uninsured and underinsured motorist coverage, which can cover your drivers and vehicles in case they are struck by someone with little or no insurance, and cargo insurance, which can take care of any costs that arise if you experience cargo theft or some other sudden loss of freight while in transit.

6. Cybersecurity Threats

The more technologically advanced your trucks and overall business operations are, the higher your exposure to cybercrime is. Cyber insurance offers liability coverage in case of cybersecurity issues, such as a data breach that leads to your clients’ banking information being stolen. Additionally, some insurers offer commercial auto hacking insurance that can cover towing, repair, investigation and other expenses related to an auto hacking incident.^[6]

7. Financial and Operational Risks

Finally, prospective business owners need to be aware of the day-to-day risks they are likely to face while running a trucking company. Numerous problems could interrupt your usual business operations, including fleet management risks like maintenance-related mechanical breakdowns, obstructions to your typical routes due to heavy traffic and changes in workflow after a business contract expires.

Because of these risks, managing a budget for a trucking company can be difficult, leaving business owners at risk of experiencing a major financial loss if they don’t have enough money saved up to account for unexpected fluctuations in income. Of course, your commercial insurance policies can mitigate your exposure to a devastating financial setback by making sure you are reimbursed whenever you experience a sudden loss on a large scale.