Hazmat Haulers Face Insurance Squeeze as Brokers Struggle to Keep Up

Hazmat haulers are being squeezed out of the standard insurance market as rising deductibles, mounting exclusions, and shrinking underwriting appetites push more accounts into the excess and surplus (E&S) space. Brokers who can’t keep up with the shift are losing business—and putting clients at risk. Michael Sutton, a commercial insurance specialist, warns that short-term cost-cutting and inattention to policy structure are leaving clients exposed to both financial and regulatory consequences.

Sutton emphasizes that securing coverage in the standard market isn’t just about getting a better rate—it’s also about ensuring stronger service, broader coverage, and long-term insurability. He cautions that brokers must get ahead of industry trends and educate clients on pollution exclusions, aggregate limits, and the risks of captives. Too many brokers, he says, are treating complex environmental risks like simple commodity placements.

Claims handling is another weak spot, particularly when it comes to environmental remediation after a spill. Mismanaged cleanup efforts can inflate loss histories and drive future premiums higher. Sutton advises clients to retain vetted cleanup vendors and negotiate rates in advance to avoid inflated costs during crises and ensure regulatory compliance.

As E&S policies become more vague and restrictive, brokers must dig deep into the policy language and negotiate aggressively for appropriate coverage—especially around pollution liability. Sutton’s message is clear: brokers who fail to evolve beyond price-shopping will continue to lose clients to competitors offering expertise, transparency, and strategic risk guidance.