The trucking industry is struggling with skyrocketing insurance costs and massive jury verdicts — often called nuclear verdicts — that are hurting companies of all sizes. At the American Trucking Associations’ Management Conference & Exhibition in San Diego, experts discussed what’s driving these problems and what carriers can do to protect themselves.
Insurance Costs Out of Control
According to Pamela Blass Bracher, deputy general counsel at ATA, insurance costs are being pushed up by several factors — not just the economy. She said global events, natural disasters, and rising claim costs all play a part. But what’s even more worrying is how long claims stay open and how quickly lawyers file lawsuits.
This means:
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Cases take longer to resolve.
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Legal costs and payouts are increasing.
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Insurers are raising premiums, reducing coverage, or even leaving certain markets.
Bracher also pointed out that traditional economic factors like inflation no longer explain how fast liability claims are growing. Instead, she said jury emotions and biases are playing a big role in driving verdicts higher. This has forced insurance companies to charge more, regardless of a carrier’s actual safety record.
Fewer Insurers, Higher Costs
Nathan Meisgeier, president and chief legal officer at Werner Enterprises, described the problem as one of supply and demand. As fewer insurance companies are willing to cover trucking, the cost of remaining policies goes up.
Werner knows this challenge firsthand. The company faced a $89.7 million verdict after a 2014 crash in Texas, even though its driver stayed in his lane and followed the speed limit. The decision was overturned by the Texas Supreme Court this year, but by then Werner’s insurance rates had already risen.
Meisgeier said carriers can’t control everything — but they can control what happens inside their operations. He advised companies to:
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Keep equipment well-maintained.
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Review and update safety policies regularly.
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Use telematics data to improve safety, not just store it.
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Build a strong safety culture so drivers prioritize lives over deadlines.
“Safety needs to be part of the company’s DNA,” he said. “Nothing is worth risking someone’s life.”
Building Strong Legal Partnerships
Kristin Glazner, chief administrative officer at Wabash, emphasized the importance of having the right legal support. She recommended that trucking companies:
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Work with lawyers who understand their company’s culture.
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Let attorneys review policies and procedures for potential risks.
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Learn from lawyers about local judges and court procedures before going to trial.
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Partner with organizations like ATA for legal and policy guidance.
Glazner also highlighted the need for tort reform — changes to laws that limit excessive lawsuits and payouts. She explained that most of this reform happens at the state level, where rules about negligence differ widely.
As nuclear verdicts and insurance rates continue to rise, industry experts agree on one thing: safety, preparation, and strong legal relationships are the best ways for trucking companies to protect themselves from financial and legal fallout.
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