Why Crime Insurance is a Necessity for Trucking Operations

Why Crime Insurance is a Necessity for Trucking Operations
Trucking operations are a prime target for theft and criminal activities. Cargo theft in the U.S. is more common than people think. According to the
FBI, the annual economic loss due to cargo theft is around $30 billion – reporting that the average cargo loss in 628 incidents in 2015 had a value of $44,426 per case.

What About Employee Theft?

Thieves scout for vulnerable trucks with poor security measures in place where cargo can be stolen easily – and some of those thieves may be trusted employees. Insurance for crime coverage in trucking operations is generally limited to motor truck cargo insurance and warehouse legal coverage. Since standard insurance policies have an exclusion for coverage of employee theft, criminal activity by your own employees isn’t covered. In order to bridge the gap between what is covered for cargo and warehouse losses and potential employee crime, you need a crime insurance policy which specifically addresses employee theft.  

Reducing Employee Theft

While it’s crucial that you cover your trucking operation with a crime insurance policy for employee theft, there are security measures you can put in place to reduce the possibility of being a victim of employee crime:

  • Never leave a loaded truck unattended, or without security, on your property or allow a driver to take a loaded truck home.
  • Ensure that drivers maintain regular contact with dispatch during every part of the shipping process.
  • Have a closed-mouth policy about your operations. Train your drivers and employees to be careful about what they say to fellow employees as well as friends and family. Train them to refrain from talking about the cargo in the trucks, and to not give out route information to people not in the chain of command.
  • Make sure all employees and drivers follow delivery and pickup protocols. Have a procedure in place for checking all ID from any personnel who unload a truck – each time. Audit your protocols regularly.
  • Screen for dishonest employees before hiring them. Run a comprehensive background check on all employees, not just the ones who have direct access to cargo contents, shipping, and routing information. If they claim to have worked in the trucking industry before, contact every reference they provide.
  • Have periodic security training for all employees.  
  • Pay attention to employees who don’t follow directions, don’t follow protocol, are loose with standards, and if there are security breaches, don’t keep them on.  
  • Use technology to manage security and route shipments, and have a system in place to act quickly if a truck goes off its route.  

If you have employees in your trucking operation, you need a crime insurance policy to cover employee theft, even if you have truck cargo insurance and warehouse insurance coverage. If you have questions about your trucking insurance needs, we have answers. Give us a call today or stop by and speak with one of our insurance specialists.

About Western Truck Insurance Services

Western Truck Insurance Services is much more than a commercial truck insurance agency. With roots dating back to 1954, we have provided our clients with unparalleled service for truck insurance quotes, customer service, coverage charges, insurance certificates, and more. We are committed to providing our clients with the service to keep their costs to the minimum and their opportunities to the maximum. For more information about our products and services, give us a call at (800) 937-8785 to speak with one of our experts.