The trucking industry faces rising nuclear verdicts, shrinking excess capacity, and tougher market dynamics. Discover key trends, risk drivers, and strategies to deliver results in today’s excess trucking insurance marketplace.
The trucking and transportation industry has long faced a volatile insurance environment. Today, excess liability coverage is more critical than ever, yet securing it is increasingly complex. Capacity continues to shrink, pricing remains pressured, and nuclear verdicts threaten carriers’ balance sheets. For retail agents, navigating this market demands persistence and a deep partnership with wholesale specialists who understand the nuances of excess trucking coverage.
MARKET DYNAMICS: CAPACITY IN RETREAT
Over the past 12–18 months, excess capacity for trucking risks has tightened further. Larger carriers have pulled back, MGAs are cutting limits, and no significant new entrants have filled the void. As a result, building towers of $30M or more has become a serious challenge for brokers, with many deals stalling at the top layers.
While rates are not spiking at the levels seen in past hard markets, they remain firm. Capacity, not price, is the dominant challenge. Markets that still offer capacity know it’s scarce and can demand premium surcharges to secure their participation. The result is a delicate balance: insureds want high limits, but assembling the pieces is more difficult than ever.
A growing trend for accounts with large primary layers is to lower the primary limit and replace it with excess coverage. Instead of a $5M primary, brokers might design a $3M excess of $2M structure to ease reinsurance pressure and reduce costs without sacrificing protection.
At the same time, new products, often captive or reinsurance-based, are appearing in the marketplace. Yet many carry restrictive or unfavorable terms. Retail agents should carefully consult wholesale brokers before recommending these alternatives to clients.
KEY RISK DRIVERS: FREQUENCY, SEVERITY, + VENUE
Loss drivers remain a central force shaping excess trucking insurance. While nuclear verdicts have become a familiar headline, the real picture is more nuanced.
- Venue matters. States Including California, Florida, New York, and Texas account for half of all reported nuclear verdicts from 2013 to 2022.3
- Driver behavior. Distracted driving, particularly cell phone use, remains a major contributor to loss frequency across the board. While professional drivers tend to be among the most skilled and safety-conscious on the road, they often bear the brunt of liability when accidents involve members of the general public. This reality underscores the importance of proactive risk management and strong coverage solutions for our trucking clients.
- Technology trade-offs. Cameras and telematics are now standard for most fleets, providing valuable tools to reduce fraudulent claims, improve safety, and support more accurate claim resolution. While they can also reveal when a driver is at fault, their broader impact on transparency and risk management is overwhelmingly positive.
Ultimately, loss frequency drives severity. A trucking company’s best bet is to invest in safety, training, and loss control to keep both the number and severity of claims down. In today’s market, underwriters look more favorably toward accounts with a strong five- to seven-year loss history above all else.
COVERAGE STRUCTURE: MORE LAYERS, MORE LEAD TIME
As carriers reduce available limits, brokers must build more layered towers to achieve desired coverage. This requires greater coordination and more time to negotiate. Submissions should be sent 90 days out - 30 days is no longer enough.
Retail agents must prepare clients for the reality that an ACORD application alone is insufficient. Detailed loss runs, safety program documentation, and operational information are required to attract capacity. In fact, some carriers now ask for longer loss histories, extending beyond the standard five years, to capture pre-pandemic data for more accurate modeling.
UNDERWRITING LANDSCAPE: WHAT CARRIERS EXPECT
Underwriters in the excess trucking market are highly experienced; most have endured numerous large losses. As a result, they are skeptical of superficial risk improvements. Cameras, telematics, and routing practices are expected, not rewarded.
The factor most correlated with favorable terms is credible long-term loss data. Fleets with consistently strong performance attract more competition from carriers, leading to better pricing and broader participation. Conversely, fleets with high frequency or severity struggle to fill towers, often facing opportunistic one-off quotes or restrictive terms.
RETAIL AGENT BEST PRACTICES
In this environment, retail agents play a pivotal role in positioning trucking clients for success. Key strategies include:
- Start early. Allow at least 90 days for submission review and tower building.
- Provide complete data. Go beyond ACORD forms to include extensive loss history, safety measures, and driver details.
- Be realistic. Help clients understand that assembling large towers will require multiple markets and potentially creative structures.
- Lean on wholesale expertise. Wholesale brokers specializing in trucking maintain the market relationships and knowledge to fill towers and spot problematic coverage terms.
- Avoid “quick fixes.” Be cautious with new or alternative products offering high limits but poor policy language.
BOTTOM LINE
The excess trucking insurance market is not in freefall, but it remains undeniably constrained. Rates have largely stabilized, yet limited capacity continues to challenge agents and brokers. Nuclear verdicts, distracted driving, and regional disparities still weigh heavily on carrier appetites and pricing. In this environment, success depends on early planning, comprehensive submissions, and trusted wholesale partnerships. Retail agents who set clear expectations and collaborate closely with specialists can still deliver strong outcomes for their clients.
At the same time, creativity has become a key differentiator. CRC is well equipped to help structure alternative solutions, including corridor deductibles, quota share arrangements with insureds, and other customized deal structures, to bridge gaps and deliver the coverage trucking clients need.
Reach out to your CRC Specialty producer today to explore how we can help you build smart, flexible programs that move your clients forward with confidence.
CONTRIBUTORS
- Andrew Baker is a Senior Vice President and Broker with CRC Birmingham.
- Scott Cottingham is a Casualty Broker with CRC Specialty’s Dallas, TX office.
- Casualty Broker Craig Nettles is part of CRC Specialty’s Norcross, GA office.
END NOTES
- ‘Thermonuclear’ Verdicts on the Rise, Report Finds, Transport topics, August 21, 2025. https://www.ttnews.com/articles/thermonuclear-verdicts-rise
- ATRI’s Newest Operational Costs Research Details Spikes in Equipment, Wage, and Total Costs in Trucking, ATRI, June 21, 2023. https://truckingresearch.org/2023/06/atris-newest-operational-costs-research-details-spikes-in-equipment-wage-and-total-costs-in-trucking/
- Nuclear Verdicts An Update on Trends, Causes, and Solutions, U.S. Chamber of Commerce Institute for Legal Reform, May 2024. https://instituteforlegalreform.com/wp-content/uploads/2024/05/ILR-May-2024-Nuclear-Verdicts-Study.pdf?