Trucking is a bustling industry, where the movement of goods is constant and motor carriers are responsible for delivering freight efficiently and on time. These factors naturally create risks and can expose motor carriers to potential losses. Business interruptions associated with vehicle accidents, workplace injuries, and roadside inspections are often top of mind, but they represent only part of the picture when it comes to calculating the total cost of risk.

Generally, the total cost of risk involves four key areas: risk control costs, administrative costs, retained losses, and transfer costs. The focus of this article is on risk transfer, meaning the transfer of a specific risk from one party to another. Insurance is the most common form of risk transfer, so let’s examine three compelling reasons insurance is an essential part of every motor carrier’s overall risk management strategy.