6 Trucking Safety Statistics that Prove You Need Insurance

In Canada, the trucking industry encompasses all companies that transport goods or materials using trucks. This includes both companies that operate their own fleet of trucks for their own goods/materials, as well as for-hire carriers who transport goods/materials for other companies. 

Trucking statistics tells us plenty about the industry, including the industry’s challenges and risks. These statistics show why trucking businesses (as well as businesses that have a private fleet of trucks) need insurance. 

So if you’re still deciding whether your business really needs trucking insurance, you’re in the right place. In this guide, we’ll talk about key trucking statistics that prove that insurance is more essential than ever. Along the way, we’ll also cover some fundamentals about trucking insurance. 

Let’s begin!

Definition of Trucking Insurance 

Commercial truck insurance or heavy trucking insurance refers to specialized auto insurance that is meant to address the needs of (1) trucking businesses and (2) businesses that have a private fleet of commercial trucks. 

Trucking insurance or heavy trucking insurance provides protection from loss during unforeseen events such as: 

• A vehicular collision involving your company’s truck
• Injuries from vehicular collision or similar road accidents
• Road accidents leading to property damage
• Damaged or stolen truck cargo
• Note: Insurance for cargo is not typically present in most trucking insurance plans by default but could be an easy add-on if you work with a trusted insurance broker.

Why Trucking Insurance is Necessary

For Trucking Businesses

The Canadian trucking industry is able to generate around $39 billion each year, showing just how lucrative the trucking industry is.  And at the end of the day, it’s a matter of making sure there is enough bottom line to keep the business running. 

But no matter how much the company earns, all it takes is one devastating road accident (and lawsuit) to put the business in the red. To a slightly lesser degree, theft/vandalism towards trucks can also set a business back financially. 

Considering that there are over 134,000 trucking companies in Canada, competition is fierce. No business can afford to be left behind because of poor risk management in the form of inadequate (or lack of) insurance.

For Businesses That Have a Private Fleet of Trucks

As for businesses that have their own private fleet of trucks, trucking insurance is just as crucial. Though truck deliveries may not be the main source of income for these businesses, the trucks are still important assets. Therefore, theft, vandalism, and (especially) road accidents will equate to major losses for the business. 

Trucking Statistics To Consider When Getting Trucking Insurance 

In the above sections, we’ve covered that insurance is necessary due to the possibility of theft, vehicular damage, and road accidents. However, by all accounts, road accidents are the most potentially debilitating of the three. So in this section, we’ll go further into trucking statistics that explore the likelihood of road accidents.  

1. Each year in Canada, there are nearly 2000 deaths and 10,000 serious injuries related to trucking accidents

In terms of area, Canada is one of the largest countries in the world. Therefore, it’s no wonder that the country is dependent on heavy trucks to move resources around to support the growing population. However, according to an article by The Independent on fatal truck crashes, there are nearly 2000 deaths and 10,000 injuries related to trucking accidents - due in part to sleep-deprived truck drivers working in stressful conditions.

2. Trucks are involved in 6.5% of total road accidents

An article by Colombo Law states that around 6.5% of total road accidents involve trucks. Though this may not look like a large percentage, these truck-related accidents are linked to a high fatality rate. 

3. Heavy trucks have 2x the fatality rate of all vehicles

According to a report by the Traffic Injury Research Foundation in Ontario, heavy trucks account for around one-fifth of motor vehicle deaths. This ties with their findings that heavy trucks have more than twice the fatality rate for all vehicles, on a per-distance basis.  

4. Large trucks make up 10% of vehicles that are involved in fatal accidents

As stated in NSC’s Injury Facts, large trucks make up 10% of all vehicles that are involved in deadly accidents. This high probability of death following a trucking accident makes it extremely risky for businesses that don’t have trucking insurance. 

5. The average cost of a trucking accident with one injured person is $148,279 - this can go up to $7 million if someone dies

So just how financially devastating is it for a business to undergo a trucking accident? It is estimated by C.A. Short that the average cost of an accident involving a commercial truck is around $148,279. This amount can go higher or lower depending on the severity of the damage. The worst-case scenario, one wherein death is involved, can make the cost go up to around $7 million. Few businesses can survive such a financial hit. 

6. Driver Error is 10x more likely to cause a trucking accident than other causes

According to a study by the FMCSA, driver error is 10x more likely to cause a trucking accident, making it one of the most serious risks faced by trucking businesses on a daily basis. Tangent to this, there is a truck driver job shortage in Canada with around 18,000 job vacancies as of late 2021. This could cause longer shifts for existing drivers and subsequent fatigue which can ultimately increase the risk of driver error. 

Bonus Statistic: Cargo theft costs the Canadian economy around $5 billion

Another reason to get customized trucking insurance is so that you can protect your truck’s cargo. So on top of the trucking statistics that we have on safety and road accidents, here’s one regarding cargo. Cargo theft is not new. In fact, it costs the Canadian economy around $5 billion annually. Furthermore, it was stated by the Insurance Bureau of Canada that in recent years, the theft of a total of $35 million in cargo was reported.  

Tailor-Fit Trucking Insurance For Your Business

In this article, we covered trucking statistics that show how crucial trucking insurance is - whether you’re in the trucking business or your business simply has its fleet of trucks. 

Here at KASE Insurance, we understand that each business has its own unique needs when it comes to trucking insurance. This is why we specialize in providing tailor-fit trucking insurance that addresses your business’s unique risks. 

If you have questions for us or you’d like to get a quick quote, please feel free to reach out to our friendly team!