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