I desperately need some good thoughts....

[Englewoodcowboy]

I may be in some long haul trouble. I own a small trucking company and last year we had a driver cause some damage to our equipment and freight, luckily it was only our stuff so nothing too exciting there... it ended in the result of me terminating the driver. I thought no big deal till my insurance came up for renewal... my policy runs a little over 40K a year and now no one will insure me for a year due to the major claims (first and only claims since starting this operation in 2008) and I am left to the state pool which is very expensive. We were quoted at over 80K for the insurance and it simply is a lot more than we make to even begin to think about covering the payments. I was forced this week to make a decision, either fold and sell/lose everything or try to lease onto another carrier for at least a year till I can get reasonable insurance back. Being forced to make a decision with such little notice has robbed me of much needed sleep and spirits to say the least... I am not looking for handouts or anything just feel like I am fighting a losing battle here and could use some words of support. What is at stake is my livelihood, my home, farm etc. which also includes my parents entire retirement. I am hoping this short term move to get by a year will work out that I can keep everything and maintain my credit, that is another big concern for me... I am thinking of trying to sell my boat but knowing I just bought it, the chances of me selling it for what I owe is slim to none and will need to liquidate some other items to make up the difference. I am not afraid to do what I must, I just worry that it won't happen soon enough to avoid impacting my credit etc. I always know if I sell I can always buy again but deep down I am hoping things work out. I have not had a vacation in over 10 years and was so anxious and looking forward to Bimini next year.. it simply sucks to see that dream starting to fade. I feel as if it wasn't for my constant bad luck I would have none at all if you know what I am saying. I hope things work out and I can continue with my original plans and salvage things but at this time I can only live and work this problem out day to day. Its simply amazing how one persons actions could cripple my business like it did, I would have never thought to worry about it. I know things happen and I guess I was fortunate and overdue but I certainly did not need it to happen all at once... Enough of my sob story, I am certain there are people who have it worse off than me but damn, I hate this not knowing and instead of leading something I am being taken for a ride and there is not much else I can do but hope and pray what plans we have come up with to salvage things works out. If not, you will know if my boat hits the classifieds... As for right now I will keep trudging ahead.

 

[Murf'n'surf]

I am so sorry to hear of these life altering issues. Hang in there and you guys will get through this.

Maybe you need to discuss this with a business attorney who might have better suggestions. Can you close the business name and reopen under new owners and attain lower rates?

 

[OperationROL]

Sorry to here this @Englewoodcowboy. I have an ex-wife that is always at my pockets, so I know the feeling. It sucks the joy right out of my body. I am hoping we have some brokers on the site that can provide some guidance. Was the insurance payment a lump sum? If so, can you get the remainder back if you find another alternative?

 

[OperationROL]

I am so sorry to hear of these life altering issues. Hang in there and you guys will get through this.

Maybe you need to discuss this with a business attorney who might have better suggestions. Can you close the business name and reopen under new owners and attain lower rates?

Not a bad idea.

 

[Bruce]

Sorry to hear this is happening to you. I hope you can find a better way forward.

Like @Murf'n'surf, I wonder if you could simply start a new trucking company to get better rates. I have noticed that some logging or hauling companies in my area have equipment owned by business belonging to several different family members. I wonder if they do this to avoid similar situations?

 

[Englewoodcowboy]

The premiums are steep which was not an initial problem, it is the fact that they want over twice what my normal premium is and the fact that there is simply no way to pass this expense on and with the economy being such a slow recovery, it has drained all back up funds. Things were looking better but by baby steps and certainly not leaps like they did when they went south. I have looked at alternatives but when dealing with something that is so regulated they have placed checks in the system that would make opening a new company a waste of time due to ownership etc. Believe me we have looked at all possible legal ways to remedy this and I am down to the options I have in front of me alone. As it stands right now I have only 2 choices ahead, either lease on and suspend my authority or throw in the towel. Though the towel idea is tempting when I look back at all the struggles i have been through as of late it is simply not an option for me unless it is forced upon me. I am open to any and all ideas for sure. I do not usually share details like this but this forum is something special and the people that are members, there is a big difference when you know the folks you converse with are genuine and I really do appreciate that. Part of me putting this out there is in hope someone has an idea I have not thought of or can look at something different. Desperate times call for desperate measures and I am there for sure...

 

[Bruce]

I am sure that you have checked, but could you start a company in another state and obtain insurance from a different provider there?

 

[Englewoodcowboy]

That I have not looked into but it is a good idea. The major issue is this is all federally regulated so I am not certain it would be a solution and if ti would happen fast enough. As of right now my guys have to stop working on Friday and time is very limited. I am hoping this lease thing works out for the short term, I don't care if I have to forgo my salary for a while so long as I can pull enough to make minimum payments I know in 8 months or so I can get back to my regular policy as some old inspections that we were put out of service on fall off the system it clears me back to my normal rates, I just need to find a way to survive 8 months...

 

[Murf'n'surf]

Can you rent through Ryder Commercial and carry insurance through them?

 

[dnicholas47]

I would contact your attorney or find someone who specializes in small business or corporate law. It would be worth the few hundred dollars to meet with them if the alternative is to potentially close the business. I have a cousin in Danville whose firm could talk to you if you don't have anyone locally.

 

[txav8r]

I too am sorry to read of your dilemma and worry. Hang in there, and leave no stone unturned. If you once had insurance at 40K, there has to be someone out there in the same range. I don't know the trucking business, but just hang in there, I suspect you will get some traffic here and maybe someone with have a suggestion that will turn on the lightbulb! I don't know how you feel and not in your shoes, but I can tell you are down. One suggestion is to either start another thread or change the title of this one, to better attract someone that might have some inside knowledge to your situation and maybe suggest alternative insurance or be of legal help. Hang in there brother, and we are the shoulder that you leaned for.

 

[McMark]

Mojo on the way. There has to be a loophole somewhere.

 

[Bruce]

Companies can be incrorporated in less than a day. Bank accounts can be setup as soon as you have the articles of incorporation. You may even be able to buy a shelf company that has some trading history.

But you would need advice on how to set it up to avoid this insurance trap.

 

[SCSTWG]

Is there a way to partner with or potentially sell to a competitor? Can you make a deal with a competitor that is beneficial to them short term but allows you to bridge the gap until the insurance issue is resolved. One long-term concern I would have is what is to prevent this scenario from happening again down the road?

 

[Englewoodcowboy]

@SCSTWG that is kind of what I am doing at the moment. I am parking my trailers and leasing my trucks on to Landstar. I still have control of my trucks and drivers but pull their trailers and move their freight. The downfall is I am giving up a reasonable percentage to do so (which everything has a cost involved) and hoping this will still yield enough to keep things paid for till I can switch back to my own. I also own a freight brokerage which I will focus any free time on to expand it. It holds its own well but is not large enough to pay out much at this time and the only way to get it big enough to do so is by expansion which all takes money to do and that is what is in short supply at the moment. I was growing and building towards that but now with the immediate income being reduced and really uncertain how it will work out it is a juggle to say the least. Fortunately for me my only major personal payment is the boat, everything else I have is paid for not saying it is much but my truck is 13 years old etc along with a few other things, not great but not bad either, there have just been a lot of things i have chose to do without... I can do without more but how much more I am uncertain of as there has to be some things you do to help keep your sanity. I am hopeful this will work out just extremely nervous because I have had little time to make a decision and thats what bothers me most.

 

[Jim Robeson]

Really sorry to hear about this @Englewoodcowboy ... I wish I could share some information but I have little when it comes to trucking. Although you said you have parked your trailers, could you not lease them out to independents??

I hope all of this works out for you.

Jim

 

[SCSTWG]

I agree with others that some good legal or business counsel might be a good investment and open options that you are not currently considering. Another option might be to take on a partner or an investor if you can show that the business has some long-term upside. Personally, if I could get away from the boat I would. The boat can easily be replaced with something as nice or nicer when the timing is better. In the meantime, you will not have the payment and associated expenses that go along with boat ownership and it will free up more time that you will presumably need to put into your business. Maybe you can manage this situation by working more hours and being more focused.

 

[biglar155]

Sending Good Vibes your way.

I think you're getting some good advice here - especially about calling in professional help.

Keep calm, keep things in perspective and have faith in yourself. Don't let that worst-case-scenario cloud your judgement. All that does is f--- with your head. You've gotten your business this far, you'll find a way to move forward.

 

[Zarrella]

Talk to an attorney or a CPA. They can be a world of useful information. My CPA has a source for every kind of service I have ever needed in the last 30 years. But as someone else pointed out a bigger concern after you weather this storm is not being in a situation where one incident can force you out of business. I agree with changing the title of this post. Maybe someone in the insurance industry will chime in. Hang in there....it will get better!

 

[Englewoodcowboy]

@biglar155 man you hit the nail on the head there. It is too easy to let the worst case scenario clutter your thoughts and cloud your judgement. I have been fighting this issue since April and thought all of this was finally put to bed last week until we found a serious gap in coverage that is stopping my customers from loading us, to get that gap closed is another 20K that I simply cannot afford this year which has lead me to where I am at today.

@Zarrella thank you for the advice. I did not think to call my accountant and I will be in a few minutes. You are the second to suggest I change the name of this thread, any ideas as to what I should change it to?