Do your drivers use their own cars ? Are you worried about rising rates for insurance coverage ? Are you using a hybrid model for your drivers ? If your answer is yes , read on . Bryan Paulozzi has some predictions for 2025 for you .
Do your drivers use their own cars ? Are you worried about rising rates for insurance coverage ? Are you using a hybrid model for your drivers ? If your answer is yes , read on . Bryan Paulozzi has some predictions for 2025 for you .
CLDA Mag : Let ’ s start with an overview of Risk Strategies so readers know where you ’ re coming from .
Paulozzi : We specialize in providing insurance solutions , risk management advice , and consulting services to meet the needs of businesses and individuals . Our team offers comprehensive solutions , from commercial insurance and employee benefits to private client services and specialty risk management .
CLDA Mag : From where you sit , what do you expect to be the three most significant insurance issues for those in our sector in 2025 ?
Paulozzi : 1 . The continued use of personal insurance for private passenger autos used for delivery purposes .
2 . The ongoing trend of rising rates and limiting capacity within the market .
3 . The misconceptions and confusion surrounding insurance for hybrid ( asset / non-asset ) companies .
CLDA Mag : Why will these trends be significant in 2025 ?
Paulozzi : Let me take them one at a time :
1 . Private auto use : It ’ s no secret that personal auto insurers have denied claims at a record pace , citing “ business use .” While slow to adjust to the “ uberization ” of our world , personal auto insurers are pushing on this heavily now . They are imposing exclusions and form limitations that prohibit personal auto policies from responding to claims when the user is making deliveries . We see many hired / non-auto ( HNOA ) insurers coming to terms with the reality that they are considered the primary insurers when a courier ’ s 1099 / subcontractor driver causes an auto accident in their own car . That ’ s why we are seeing a continued influx of rate adjustments from these HNOA insurers and a rash of them imposing heavy limitations . These limitations are often in the fine print that insureds usually ignore . The industry is at a crossroads about how to address this . We foresee the potential for requirements for full-time commercial auto insurance to be carried by the drivers . This could have catastrophic cost consequences . As an alternative , an old product is being dusted off the shelves . The product is known as “ While Under Dispatch ” auto coverage . This kind of coverage has been making a dramatic comeback as a viable alternative that last-mile companies shouldn ’ t ignore . It may offer an immediate solution to help offset claims negatively impacting HNOA insurers and help them stem the tide of further rate increases for this class .
2 . Rising rates : We are seeing continued upward rate adjustments as insurance carriers try to outpace claims and inflation ’ s devastating impact on the industry . According to the Insurance Journal , there has been a significant and persistent profitability issue in the commercial auto insurance sector . This puts upward pressure on rates , resulting in fewer carriers willing to write coverage in this space .
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