Just one day before the House approved a bill that would require double insurance coverage, an Illinois carrier filed for bankruptcy protection citing skyrocketing insurance rates.
On Wednesday, Deluxe Express Inc., of Plainfield, Illinois filed for Chapter 11 bankruptcy protection. The company cited rising insurance rates as one of the factors in the bankruptcy.
On Wednesday, the U.S. House of Representatives passed a $1.5 trillion infrastructure bill containing two controversial provisions that could have a massive impact on struggling carriers, owner operators and small carriers.
On July 1, the House passed the Moving Forward America (MFA) Act by a vote of 233 to 188.
While the MFA Act will provide much needed funding for repairs to roads and bridges, but it also currently contains a measure introduced by Illinois Rep. Chuy Garcia to increase commercial vehicle minimum insurance liability requirements from $750,000 to $2 million.
Garcia said that the insurance hike is meant to benefit the families of crash victims, but many members of the trucking industry say that it could spell disaster for companies already struggling with the challenges of hauling through a pandemic in a time of nationwide civil unrest.
A counter-amendment to strike Garcia’s trucker insurance hike was introduced by Illinois Rep. Mike Bost but lawmakers passed on voting it into the infrastructure bill.
