Rethinking Insurance for Transportation Companies: A Smarter, Stronger Partnership Approach
Rising premiums, confusing claims processes, and policies that disappear when you need them most. Sound familiar?
If you’re a transportation business owner—whether you run a bus company, motorcoach fleet, or charter operation—you’ve likely had your fair share of frustration with traditional insurance. Rising premiums, confusing claims processes, and policies that disappear when you need them most. Sound familiar?
“As a transportation operator and advocate, I believe insurance should empower, not burden, our businesses,” says Clarence Cox, COO of Georgia Coach Lines Inc. and Chair of ABA’s African-American Council. “We need partners who fight for fairness, share risk responsibly, and stand with us when it matters most.”
Rick J. Lindsey, President of XINSURANCE, has spent over four decades challenging the conventional insurance model for transportation companies. His message is clear: insurance should be a partnership—not a product you regret buying.
On a recent African-American Council webinar, Rick delivered a brutally honest breakdown of what’s wrong with the current system—and how smart operators can better protect their businesses.
Here are four major takeaways that every bus or transportation operator should know.
Fight Frivolous Claims—Don’t Settle Out of Fear
In the standard insurance model, 98% of claims are settled—even when they’re baseless. Why? Because most carriers would rather pay than fight. But that strategy backfires, leading to higher loss ratios and skyrocketing premiums for the entire industry.
Rick’s approach is different: if your business is not at fault, stand your ground.
“You can’t build a sustainable business if you’re handing over money just to avoid court,” he said.
Transportation business owners should stay engaged in their claims and insist on legal strategies that reflect the truth—not just what’s easy. This hands-on, offensive strategy has helped Rick win over 4,000 lawsuits that other insurers wouldn’t touch.
Shared Risk Models Are Better Than Flat Deductibles
In traditional commercial auto or bus operator insurance, deductibles can discourage claim reporting and create tension between insurers and policyholders. Rick recommends risk-sharing agreements that align both parties from the start.
For example, instead of a $10,000 deductible, why not a 5% contribution on each claim? That way, both insurer and operator are invested in a fair, fast resolution.
“You want an insurance partner who’s aligned with your success—not one who disappears when it’s inconvenient,” Rick noted.
This approach encourages early reporting, reduces fraud, and leads to smarter claim outcomes—something every transportation company insurance plan should strive for.
Cut Waste: Lower Expense Ratios Mean Lower Premiums
One of the hidden problems with traditional insurance is the expense ratio—how much of your premium goes to administrative overhead and broker commissions. In many cases, 40% or more of your premium never touches your claim.
XINSURANCE operates with a 22% expense ratio. How? By reducing unnecessary middlemen, automating outdated processes, and rewarding performance—not volume.
“If your broker is stuck in the 1970s, you’re probably paying for their inefficiency,” Rick said.
For transportation businesses looking to cut costs without sacrificing coverage, choosing a leaner, more efficient insurance provider is critical.
Why Insurance Should Feel Like a Partnership, Not a Burden
At its core, insurance for transportation companies should do one thing: help you recover when things go wrong. Yet too many business owners view their policy as a cost, not an asset—mainly because it’s not built on trust.
Rick’s philosophy is simple: build long-term relationships. Know your carrier. Align your goals. Stay involved. And never let fear—not of court, not of cost—dictate your decisions.
“You don’t build a business on panic,” he said. “You build it with partners who show up when it matters most.”
If you’re a transportation operator tired of weak policies, slow payouts, or rising costs tied to someone else’s losses, it’s time to rethink what insurance for your transportation business should look like.
