Trucking Insurance & Risk Management with Claudia Catlett | Ep 32

This episode of Miles and Mentors features Claudia Catlett, an insurance and claims specialist at General Transportation, who provides a comprehensive look at risk management, fraud prevention, and insurance pitfalls in the trucking industry. Claudia breaks down how small mistakes—like failing to read a rate confirmation or misunderstanding an insurance policy—can lead to financial disaster for truckers. She explains why many owner-operators unknowingly take on massive liability by not fully understanding their contracts and how simple oversights, like not documenting a shipment properly or failing to report an issue at a shipper, can leave them responsible for cargo claims they should never have to pay.

A major focus of the conversation is the rise of fraud in trucking, particularly double brokering schemes, identity theft, and cargo theft. Claudia explains how scammers impersonate brokers and shippers, tricking carriers into hauling freight they may never get paid for. She details red flags truckers should watch for, including suspicious email domains, fake load confirmations, and brokers requesting unconventional payment methods. She emphasizes the importance of verifying who you are working with, making phone calls to confirm load details, and being extremely cautious before agreeing to anything that seems off.

On the insurance side, Claudia goes into detail about what policies truckers actually need and why cutting corners on coverage can backfire. She explains how many new owner-operators don’t realize that cargo insurance isn’t federally required, leading them to unknowingly run loads without coverage. She stresses that while minimum liability coverage is $750,000, most brokers require at least $1 million, and many high-value loads need even more specialized coverage. She also warns truckers to be aware of policy exclusions, such as reefer breakdown clauses and scheduled auto policies, which can result in denied claims if the truck isn’t properly listed.

Claudia also discusses the financial impact of claims, explaining that a single cargo or liability claim can freeze all of a carrier’s payables from a broker, sometimes holding up tens of thousands of dollars while the claim is investigated. She shares strategies to avoid cash flow problems, including keeping strong documentation, knowing what’s covered before accepting a load, and communicating with brokers upfront to ensure claims won’t disrupt payments.

Beyond insurance, Claudia touches on other critical risk management strategies, including how truckers can protect themselves against fraudulent vendors, shady factoring companies, and predatory dispatch services. She warns that many services aggressively target new carriers and that truckers need to carefully vet any company handling their money, contracts, or compliance. She also highlights how maintaining a clean safety record and reducing out-of-service violations can significantly lower insurance costs and help carriers secure better-paying loads.

Throughout the episode, Claudia emphasizes that trucking success isn’t just about hauling freight—it’s about protecting the business from risks that could put a carrier out of operation. She urges truckers to be proactive, read every document they sign, take pictures to document shipments, and build relationships with trusted professionals who can guide them through the complex world of insurance and claims. This episode provides essential insights for owner-operators, fleet owners, and anyone looking to safeguard their trucking business from unnecessary financial losses.