The Ontario Trucking Association (OTA) is announcing it will be collaborating with insurance industry experts and specialized brokers to develop a proposal for how commercial carriers are able to access Facility Association (FA) insurance.
This partnership ensures that complex insurance matters are handled with legal precision, while sending a clear message that the systemic manipulation of the insurance market must end.
The initiative aims to transform the “insurer of last resort” from a hiding spot for high-risk, dangerous companies that the private market would otherwise reject, into a temporary measure with a firm “sunset clause.”
The OTA has already formally written to the Minister of Finance on this urgent matter. The association confirmed today the finalized policy proposal will be in the Minister’s hands within 30 days. The OTA is demanding immediate action, as the continued presence of high-risk operations under this regime threatens the health and safety of every Ontarian sharing the road.
“Facility insurance was never intended to be a permanent landing spot for carriers that fail to meet basic safety standards,” said OTA president Stephen Laskowski. “Currently, the system is being exploited by fleets playing a dangerous game of ‘whack-a-mole’ to stay on the road. We have seen mass migrations of trucks associated with Ontario-based fleets registering out of province to exploit different insurance loopholes when it suits their needs. As soon as one provincial agency realizes the situation and catches up to them, the operations simply jump to the next, less restrictive regime.”
“As free-market entrepreneurs and business people, our Board members have a hard time understanding why the Government of Ontario plays any role in deciding who gets an open-ended, subsidized lifeline to continue operating, which is funded by all other car and truck insurance policy holders – and specifically in an industry as safety-sensitive as trucking.”
Insurance is mandatory, and the Facility Association exists to provide coverage for individuals and companies, while also protecting third parties from bodily injury and property damage.
However, the OTA is advocating for strict limits on the length of stay within Facility. Under the proposed policy, carriers must be rated to reflect their true safety risk. Those who cannot improve their performance within a defined period should be removed. If they remain uninsurable by the private sector, then they pose too much of a risk, OTA argues.
“To make this work, we need to build hard fences around the system – rules and timelines that are absolute and cannot be manipulated by anyone,” added Geoff Wood, OTA Senior VP, Policy. “By working with insurance experts, we are ensuring our policy is legally sound but uncompromising: the era of using evasive tactics to bypass safety standards is over. Improve your safety or exit the industry.”
The OTA Board of Directors acknowledged several operational challenges which have historically stalled reform, including:
- Support for Emerging Entrepreneurs: Ensuring new market entrants with no prior Canadian insurance history have a path to build a verifiable safety record.
- Market Volatility: Protecting legitimate businesses during “hard” insurance cycles when private-sector capacity is restricted.
- Economic Continuity: Addressing concerns regarding sudden supply chain disruptions if a large volume of carriers were removed simultaneously.
The plan provides a fair window for those who are truly trying to improve before removal, while ensuring chronic bad actors can no longer hide behind a revolving door of province shopping options while taking advantage of out-dated rules.
The OTA will continue to consult with insurance regulators to finalize these terms, ensuring that the privilege of operating on Ontario’s highways is tied to a verified commitment to safety and lawfulness.
The OTA launched a campaign asking the public to demand Queen’s Park puts an end to facility insurance exploitation by unscrupulous carriers and other forms of rampant lawlessness in the Ontario trucking industry. Click here to have your voice heard.