RISK FINANCING
Guaranteed Cost Insurance
Guaranteed Cost Insurance
Guaranteed Cost policies help motor carriers keep their Workers Compensation and trucking insurance costs stable. It is a risk financing approach Great West offers that adds predictability to your budgeting and cash flow.
When you choose a plan that guarantees your premium cost, you know exactly how much you’ll spend each year on your insurance. Your policy is priced at a flat rate, and you pay a fixed premium annually.
That makes this plan a popular option for small and mid-sized motor carriers that are budget conscious.
What are the advantages of a guaranteed cost policy?
There are several benefits that make this option attractive, especially for smaller motor carriers. The biggest advantage is budgeting predictability. You pay a fixed premium regardless of the number of losses that occur during your policy term. You have the convenience of knowing exactly what you will pay each month.
Your policy is not subject to adjustment due to the number of claims or losses that occur during your policy’s term. For a workers compensation guaranteed cost policy, the only thing that could change your premium is a post-term audit adjustment based your actual payroll.
When you have a Workers Comp claim, the seasoned, in-house team of Great West claims professionals provides administrative and claims services, just as we would with a traditional Workers Comp plan.
What is a post-term audit adjustment?
When you choose a guaranteed cost policy for your workers compensation policy, your trucking company agrees to pay a premium based on a flat-rate estimate of your payroll at the beginning of your plan period. After your plan expires, we’ll do an audit of your actual payroll and your final premium will be adjusted accordingly.
How do adjustments work?
- If your payroll is less than you estimated, you receive a refund of the difference between the estimated premium and the audited premium.
- If your payroll is more than estimated, your trucking company pays the additional premium to the insurance carrier.
Who should consider a guaranteed cost policy?
Many motor carriers consider this type of risk financing tool when they’re looking for “first dollar coverage.” The key benefit of a guaranteed cost policy is the predictability of premium for budgeting. The insurance carrier assumes all the risks and pays for all losses associated with the claim.
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Insurance Contracts are Underwritten, Administered, and Issued by: Great West Casualty Company, Old Republic Life Insurance Company, and Old Republic Union Insurance Company.
One or more Old Republic companies may provide the products and/or services described. Information presented is for illustrative purposes only and does not constitute a contract or advice, including employment advice or advice to motor carriers. Please refer to the relevant insurance policy for actual terms. Products and services may not be available in all states and may be subject to change without notice. © 2026 Old Republic International Corporation. Old Republic® and the Old Republic Circle of Stars monogram are registered trademarks. All Rights Reserved.