The cost of risk is a major expense for all companies, and this is especially true for the trucking industry. Within the trucking industry, the primary loss exposure for both workers compensation and commercial automobile programs is with drivers. Hiring qualified, competent drivers is crucial when attempting to control losses. However, due to a general shortage of qualified drivers throughout the industry, many companies are forced to choose between putting less-qualified drivers behind the wheel or having trucks sit idle. In the short term, having the trucks on the road is the only answer.
Revenue is critical to survival.
Operating margins are extremely high, and profit margins are thin. In the long run, however, this may or may not be the proper decision. They cause bodily injury and property damage to others as well as themselves. In addition, customer satisfaction also suffers due to problems such as delayed or missed deliveries and improperly delivered loads. The ultimate cost to a company for having these drivers on the road can be substantial.