Editor’s note: This op-ed for Bus & Motorcoach News is written by Brian Dickson, Owner and Principal Consultant of Bus Business Consultants.
Rising insurance costs remain one of the toughest challenges facing ground transportation operators. Premiums are climbing, coverage is tightening, and the margin for error is shrinking.
Yet, as two industry experts emphasize, operators can regain leverage by viewing insurance not just as a financial transaction, but as a strategic component of risk management — one that rewards preparation, accountability, and strong leadership.
This article is the third installment in my ongoing series, You Spoke. We’re Addressing, which focuses on the top challenges identified by operators earlier this year. The series explores issues such as real-time performance data, driver recruitment and retention, and now, insurance and safety risk — offering actionable insights and strategies from industry leaders to help operators respond with clarity and control.
This piece summarizes a recent video discussion on Ground Transportation Insights featuring Alan Mar and Carter Bumgardner of Graham Company, one of the largest insurance and employee-benefits brokers in the country. Together, they unpacked the current market landscape, identified common mistakes, and shared practical steps operators can take to strengthen their position.https://busbusinessconsultant.substack.com/
The full video conversation is available to watch on Ground Transportation Insights.
The state of the market
The insurance landscape for large commercial fleets is more challenging than ever. Auto liability has been unprofitable for nearly two decades, and even companies with strong safety records are seeing rate increases.
A combination of social inflation, nuclear verdicts, and litigation financed by private equity has dramatically raised the stakes. These pressures have driven up umbrella and excess liability costs while also making carriers more selective in underwriting risks.
At the same time, operators are squeezed by rising equipment costs, labor shortages, and higher claims frequency. It’s a challenging environment — but not an uncontrollable one.
What influences rates most
Underwriters typically rely on five to seven years of historical loss data, which makes insurance inherently reactive. But Mar and Bumgardner note that operators can influence how that data is interpreted through culture, systems, and communication.
Strong safety programs, adoption of technology (dashcams, telematics, and ADAS), and driver accountability all help build confidence with underwriters. Importantly, technology alone is no longer a differentiator — it’s an expectation. What matters is how consistently the data is used.
“Unused data can even increase exposure,” Mar cautioned, noting that having cameras or telematics but failing to review or act on the information can weaken a company’s credibility.
Operator strategies that work
Relationships, preparation, and execution emerged as recurring themes throughout the discussion.
- Build relationships: Carriers are more willing to deviate from formulaic pricing when they believe in an operator’s leadership and safety culture. Meeting directly with your underwriter can humanize your operation and separate you from a “stack of submissions.”
- Follow a framework: Mar recommends a three-step safety improvement process — establish a baseline, conduct a gap analysis, and then execute targeted strategies.
- Start early: Plan your renewal process well in advance. For example, Graham Company’s process includes stewardship meetings six months out, pre-renewal four months out, and market engagement 90–120 days before renewal.
- Execute consistently: Small, steady wins carry more weight than lofty plans that go unfulfilled. “Accountability and follow-through demonstrate discipline,” Bumgardner emphasized.
Common mistakes and missed opportunities
Many operators weaken their position by failing to execute plans or by treating brokers and carriers as transactional partners rather than strategic allies.
Other missed opportunities include overlooking carrier-provided resources — many insurers offer safety, training, and claims support services already built into their programs. “When many are responsible, no one is,” Mar added, underscoring the importance of assigning clear ownership for safety and compliance initiatives.
Creative, forward-looking strategies
Mar and Bumgardner also discussed several proactive strategies:
- Optimize deductibles: Adjusting deductibles strategically can help earn rate credits.
- Explore captives: For well-run fleets, captive programs can offer long-term stability by “forming your own insurance company.”
- Share data transparently: Demonstrate measurable safety outcomes to earn underwriter trust.
- Avoid last-minute renewals: Early engagement with the market increases leverage and flexibility.
Looking ahead
Auto liability is expected to remain difficult for the next several years, although workers’ compensation may soften for companies with strong performance records.
Looking ahead, distracted driving — particularly by private motorists — remains one of the most persistent and costly challenges impacting claim severity.
In the long term, progress depends on leadership, cultural accountability, and disciplined planning. Operators who treat risk as a continuous process — not an annual renewal exercise — will remain best positioned to manage costs.
Final thoughts
Both experts closed on a leadership note:
- Alan Mar: Success depends on human capital — putting the right people in the right seats, backed by executive sponsorship that drives culture from the top down.
- Carter Bumgardner: “Complacency kills growth.” Every year should include a full review of your insurance program and partners — the easy button leads to stagnation.
Insurance, they agreed, should not be a static line item on a balance sheet, but a living reflection of a company’s culture and leadership discipline.
To watch the full video discussion with Alan Mar and Carter Bumgardner, visit Ground Transportation Insights at busbusinessconsultant.substack.com.
Brian Dickson is the Founder of Bus Business Consultants and author of the industry newsletter Ground Transportation Insights, available at busbusinessconsultant.substack.com.
