How can we tackle fraudulent practices in trucking credentials?

Fraudulent practices in licensing and certification are a growing concern in the Canadian trucking industry. Unqualified individuals may use illegal methods, such as forged documents, bribery, or falsified training certificates, to obtain commercial driver’s licences or other professional credentials.

When drivers lack valid qualifications, the risk of collisions increases, putting road safety at stake while simultaneously driving up claim severity and costs. Over time, that pressure can raise insurance costs across the commercial trucking sector, affecting fleets regardless of their operational integrity.

Mitigation and prevention require due diligence at both the driver and carrier levels – and it’s a shared responsibility. Fleet operators must maintain disciplined internal processes to ensure drivers are properly licensed and trained and all these details are documented. Brokers can help keep fraudulent or non-compliant operations out of the market by leveraging thorough verification practices in alignment with insurer standards. Since Brokers are often the first checkpoint in carrier selection and placement, validation at this stage may stop issues before they become losses.

Brokers as the first line of defense

Through proper verification, Brokers can confirm that fleet operators are legitimately authorized to operate and are following correct processes. This can include:

• Verifying operating authority and identity: Confirm that a carrier’s operating authority is active and authorized and review their authority history (especially if recently reinstated). Validate driver’s licences regularly, confirm safety fitness certificates with provincial/territorial authorities, and confirm insurance coverage directly with the insurer.
• Asking the right questions: Strengthen verification by asking process-based questions, for example, who verifies licences, how often are driving records reviewed, and what happens when information is missing or inconsistent.
• Ensuring strong document management: Look for red flags such as incomplete driver files or discrepancies across documents, and maintain accurate records of transactions, insurance certificates, and operating licences for all contracted carriers.
• Encouraging consistent onboarding and training: Support carriers in documenting employee orientation, training, and ongoing coaching.
• Promoting incident readiness: Confirm fleets have clear post-incident procedures (including collecting driver statements, obtaining dashcam footage, gathering witness information, and preserving documentation) so information is captured quickly and accurately to support claims investigations.

Why it’s important for fleet operators to demonstrate ongoing compliance

For fleet operators, gaps in licensing or certification can lead to increased scrutiny during underwriting, higher premiums, tighter terms, or difficulty securing coverage. After a serious loss, those gaps can also lead to denied claims and significant financial exposure.

Implementing and maintaining structured processes helps demonstrate compliance, reduce the likelihood of errors, and support long-term insurability. This can include:

• Maintaining complete, up-to-date documentation: Ensure licensing, training records, and required certifications are legitimate, accurate, organized, and accessible. Assigning clear internal responsibility for managing these files, regardless of fleet size, helps prevent oversights and gaps.
• Using consistent onboarding and training processes: A documented approach to orientation, training, and ongoing coaching reinforces expectations and creates a record of due diligence. Fleets that treat training as ongoing, not a one-time requirement, are better positioned to manage evolving risks.
• Conducting regular internal reviews of records and processes: Addressing issues early and engaging proactively with their Broker when questions arise supports compliance and helps demonstrate a commitment to safe, authorized operations.

How insurers can support Brokers and fleet operators

To help Brokers and fleet operators strengthen compliance, insurers can clarify expectations and reinforce best practices and risk mitigation strategies before issues escalate.

To reinforce the Broker verification process, insurers can also conduct risk inspections to assess compliance. Regulators can strengthen these efforts by providing insurers with direct access to verify licensing and certifications, helping deter fraud.

Insurers further support Brokers by communicating underwriting expectations clearly and consistently, so they can explain requirements to their customers with confidence. This shared understanding promotes a more collaborative approach to maintaining proper coverage.

When Brokers, fleet operators, and insurers each uphold their responsibilities, these combined efforts strengthen compliance, enhance safety, and help build a more resilient Canadian trucking industry.

Copyright © 2026 Echelon Insurance. All rights reserved. This article is provided by Echelon Insurance (“we”) for general information purposes to help Brokers and their commercial customers understand the risk implications of illegality in trucking licensing and certifications and taking proactive steps to respond to and mitigate these risks. While we believe this article is comprehensive, it is provided “as is” and we do not guarantee it is complete. All responsibility and risk relating to specific incidents, including use of this form, are assumed by the commercial enterprise.

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