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What Does It Mean For A Trucking Company To Have A Conditional Insurance Rating?

What Does It Mean For A Trucking Company To Have A Conditional Insurance Rating?

There are three kinds of motor carrier insurance ratings issued after a compliance review. This evaluation is given to a trucking company by Federal Motor Carrier Safety Administration (FMCSA). There are three levels of ratings: satisfactory, conditional, and unsatisfactory. 

While satisfactory and unsatisfactory ratings are straightforward, the conditional rating may confuse some commercial truck owners. Simply put, a conditional rating implies that a motor carrier fails to have adequate safety management controls in check, which results in violations. 

Effects of Conditional Insurance Rating 

A conditional rating can impact your business negatively. Due to this, brokers and shippers would know you will have trouble getting loads, so they might start paying you less, whereas some may even decide not to load you at all. 

Thus, a trucking company with this kind of rating will start facing losses. A conditional rating can also be the cause of premiums to rise by at least 25%. This results in making you pay extra for insurance. 

Therefore, FMCSA conditional insurance rating may result in:

  • Lost revenue from freight brokers
  • Increased insurance premiums
  • Being carefully evaluated by FMCSA

That said, it’s important to ensure that your commercial trucking company follows all the necessary protocols and has adequate safety management controls in place to get a satisfactory rating. Otherwise, you face the risk of fewer clients and higher premiums.

Frequently Asked Questions:

What does a conditional insurance rating mean for a trucking company?

A conditional insurance rating implies that a trucking company fails to have adequate safety management controls, resulting in violations.

What are the effects of a conditional insurance rating on a trucking company?

A conditional rating can lead to lost revenue from freight brokers, increased insurance premiums, and closer scrutiny by the FMCSA.

How can a trucking company avoid a conditional insurance rating?

Ensuring adherence to all necessary protocols and having robust safety management controls in place can help a trucking company attain a satisfactory rating.

Still confused as to what a conditional insurance rating is? Contact the Assured Standard team today and let us help you!

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