Trucking Firms Battle Rising Insurance Costs and Legal Challenges

The post-COVID decline in freight volumes, paired with rising diesel, equipment, and insurance costs, has plunged the U.S. trucking sector into a profitability crisis. Many carriers are scaling back, merging, or shutting down entirely as they grapple with thin margins, especially in litigious and high-risk states like California, Texas, and New York. With insurance costs climbing steeply—driven in part by nuclear verdicts and social inflation—claims adjusters and brokers are finding themselves at the frontline of a high-stakes battle between risk and resilience.

Litigation remains a core pressure point, with settlements often exceeding $1 million and plaintiff-friendly venues dissuading insurers from writing new business. However, emerging tort reform efforts in Florida, Georgia, and Texas, along with third-party litigation disclosure laws, signal potential long-term improvements in market conditions.

For adjusters, the key takeaways are clear: early claims intervention is critical, thorough documentation using safety technologies like telematics and dual-facing cameras is essential, and a firm grasp of jurisdictional risk is non-negotiable. Experts stress that adjusters must become active players in shaping claims strategies—not just passive processors—to mitigate rising litigation threats. Some agencies are taking claims handling in-house to improve preparation and defense outcomes, even successfully winning full defense verdicts.

Safety scores, driver training, and tech adoption now play an outsized role in securing favorable insurance terms and defending against legal exposure. Carriers and adjusters alike must embrace a back-to-basics mentality, sharpen claims protocols, and remain hyper-aware of changing legal landscapes if they are to stabilize loss ratios and defend their insureds effectively.