1. Insurance

The trucking industry continues to experience increasing insurance rates, due in part to the rise in nuclear verdicts. A nuclear verdict is defined as a court decision of $10 million or more, typically from a severe accident or injury lawsuit involving large trucks and motor carriers. These rulings have been trending upward since 2013 (excluding the pandemic period when courts were shutdown). According to a study by the U.S. Chamber of Commerce Institute for Legal Reform, the overall mean nuclear verdict from 2013-2022 was $89 million.

Motor carriers are a prime target for litigation, and trucking companies are now faced with the impact of such high-cost rulings. Insurance premiums continue to increase despite a two-year decrease in the number of fatalities and injuries resulting from crashes involving large trucks. Carriers are forced to adjust their operating plans to accommodate higher insurance rates, which means they have less money for continued safety improvements and new equipment. Legal reform is needed to curtail the significant upward trajectory of nuclear verdicts and insurance premiums.