This article was produced with Amwins.
Gia Snape of Insurance Business sat down with Nick Blankenship, underwriter at TUMI (An Amwins company) about how dump truck operations – and their risks – are evolving, and how retail agents can help get their clients the best underwriting experience possible.
Dump trucks occupy a unique and often underestimated corner of the transportation industry. While the sight of these massive vehicles hauling sand, gravel, or construction debris is common, their operational intricacies and associated risks often go unnoticed.
Moreover, dump truck businesses are evolving. Unlike long-haul operations, which often rely on uniform fleets, dump truck operations are more frequently managing mixed fleets. As they grow, they diversify, bringing new sets of exposures to their businesses that retail agents may overlook.
"We see accounts that begin with a handful of dump trucks and roll-offs, but as they grow, operations will shift back and forth between the separate classes,” said Nick Blankenship (pictured), underwriter at TUMI, part of the Amwins Underwriting division.
“The dump truck industry is about much more than hauling dirt, rock, and gravel; it’s a sophisticated and evolving field with numerous operational challenges.”
One often overlooked exposure for dump truck operators is their physical environment. Dump trucks frequently operate in conditions that challenge their stability and durability. For instance, they don't just traverse highways; they travel on state and local roads, building infrastructure, and even on unfinished roadways like those leading to quarries or mining sites.
This variability in their routes makes dump truck operations far more complex than those of long-haul truckers, who often stick to predictable routes and standardized conditions. On top of that, dump trucks must navigate rugged terrains, often on incomplete roadways, where weather can severely impact safety.
But roads are just one aspect of the heightened risk. "When they're trying to dump or load commodities, they're usually around heavy equipment and construction sites, which adds a unique exposure for this class of business," said Blankenship.
Their shorter wheelbase—creates a false assumption among the public that they are more agile compared to long-haul trucks—The reality is they are still transporting the same weight of cargo, which makes stopping abruptly just as difficult and increases the risk of liability claims for the insured. These factors combine to make insuring dump trucks particularly complex.
The stakes are high for operators, and the risks are magnified by the physical damage potential and the cost of the trucks themselves. According to Blankenship, the claims associated with dump trucks reflect the severity of these challenges.
"On the physical damage side, we don’t typically see smaller claims such as dents, dings, or broken lights likely caused by loaders and excavators—though these issues do contribute to higher maintenance scores during inspections,” he said.
“What we see more frequently, however, are severe incidents like rollovers. These often occur when trucks are improperly loaded, shifting the center of gravity when raising their beds, or when unstable roadways give way under the trucks. These rollovers can often total trucks, leading to significant auto physical damage losses.”
With new dump trucks valued upwards of $260,000, they’re far from cheap. Beyond their price, they involve highly complex equipment, including hydraulic systems, walking beds to move materials and side-dumping capabilities. This makes the risk profile for dump trucks starkly different from that of general freight or long-haul trucking.
Operators may add rolloff containers or flatbeds to accommodate different job requirements, and over time, this diversification can lead to entirely separate operations under the same business umbrella.
This evolution reflects not just the needs of their market but also the adaptability required of operators. Whether dump trucks are hauling grain for farmers, moving dry bulk cement, or transporting topsoil, the equipment and operational scope must expand to match demand.
Yet, this adaptability comes with challenges, particularly in the eyes of underwriters. Traditional classifications often fail to capture the nuances of these operations, and misclassifications can lead to inadequate rates.
One common misconception in the marketplace, according to Blankenship, is the valuation of sub-hauler exposure. He said agents, prospects, and less experienced underwriters often overlook this nuance in general trucking.
“Hired and non-owned auto symbols are often included as a value add, which is fine for general or long-haul trucking,” he explained. “However, in the dump truck space, smaller operations frequently take on contracts they can't fully service and hire sub-haulers to handle the additional dirt, sand, and gravel.
The exposure is compounded by the fact that many sub-haulers are small businesses struggling with today’s high insurance costs, leading some to operate without coverage after a midterm cancellation of the subhauler’s policy. This then transfers the exposure back to the insured for drivers who may or may not be operating under their safety protocols and standards.
Despite the operational and financial risks, the industry’s biggest challenge might be the qualified driver shortage. A driver’s skill and attentiveness often make the difference between a safe delivery and a catastrophic accident.
“A dump truck, tractor-trailer, or general freight hauler isn't inherently a bad risk—until you put a driver behind the wheel,” Blankenship said. “Parked, it’s just a truck and trailer with cargo. But once on the road, the driver’s experience, attentiveness, and focus over long work hours determine whether the risk’s future loss experience is going to be good or bad.”
However, finding qualified drivers is increasingly difficult in the commercial driving industry. The shortage has forced some operators to lower their standards, but Blankenship warned that poor hiring decisions often lead to poor loss experiences, jeopardizing their employees’ safety and tarnishing their company’s reputation.
"Some states allow operators to run rolloff trucks without a CDL (commercial driver’s license) or obtain a CDL one at a younger age, but in our program, we require all drivers to have a CDL and prefer at least three years of experience," he said.
Given these challenges, retail agents play a crucial role in bridging the gap between operators and insurers. Understanding the nuances of dump truck operations and their evolving risks is essential.
Blankenship shared three tips for retail agents that can aid in the underwriting experience:
While the dump truck industry remains challenging, it also offers opportunities for clients willing to adapt and invest in best practices.
From advanced equipment to mixed operations and proactive risk management, the sector’s complexities demand a sophisticated approach, one that acknowledges the unique exposures and evolving landscape of this vital transportation niche.
Learn more about TUMI’s dump truck program here.
