The Pandemic’s Impact on the Transportation Industry

If you insure truckers, trucking companies, or other clients that conduct business in the transportation sector, you may be wondering what impact the pandemic has had on the industry as a whole. Although transportation is generally considered an essential service, the pandemic left nearly no industry unaffected, transportation included. Your clients need to understand the pandemic’s effect on the shipping of goods, the public perception of various types of transportation, and the kinds of insurance coverage they may require in the future.

Shipping and Transportation of Goods May Have Been Delayed

Due to the pandemic, many shipping routes and goods transportation schedules had to be altered or modified in some way. In many cases, goods may even have been delayed. This sudden shift affected transportation by all vehicle types, namely the following:

  • Air cargo may have been employed as a last resort to ship essential goods around the world
  • Long-haul trucks and cargo dispatchers may have been delayed in getting their goods out, especially if they primarily delivered to the restaurant or hospitality industries
  • Cargo ships may have had to delay their trips due to lack of ready goods from manufacturers whose processes were negatively affected by the pandemic

The Transportation Industry May Be Undergoing a Perception Shift

Another change in the transportation industry resulting at least in part from the pandemic is that it may be undergoing a public perception shift. Since fewer people have needed to travel and the shipment of goods has been altered in some ways, the role of transportation in the commerce world may be changing. Some key examples include the following points.

  • Public transportation methods and shared transportation methods, such as taxis or Ubers, may not be as popular in the future as people avoid them for safety reasons
  • Private transportation methods, such as personal cars, scooters, bikes, and motorcycles may increase in popularity
  • As the quarantine continues, fewer customers may be traveling by plane
  • Long-haul trucks, cargo ships, and air cargo planes remain essential to transport goods both nationally and internationally

Your Transportation Worker Clients May Need To Ask Essential Impact Questions

Given the various impacts of the pandemic on transportation as a whole, clients who work in the industry may need to start asking themselves some prudent questions to prepare for the future. Guide your clients toward answering key questions such as:

  • How can the transportation business model be adapted to maintain employee and customer safety and avoid expensive lawsuits?
  • What are the new laws and regulations that need to be complied with regarding the pandemic?
  • What types of insurance coverage could as a helpful safety net?

Before you can recommend tailored insurance coverage to your clients who work in the transportation sector, it’s important to make sure they fully understand the impacts of the pandemic. In your next meetings, be sure to discuss the above points with your clients.

About Genesee General

At Genesee, we strive to provide quality insurance solutions for the Commercial E & S sector. Our longstanding expertise has allowed us to successfully serve your clients for over three decades. Our specialized products include coverages for Transportation, Garage, P & C, Professional, Brokerage Property, Specialty Programs and many more. For more information about our products, we invite you to contact us today at (800) 282-8755.