A number of nuclear verdicts have rocked the transportation industry over the last several years. FreightWaves teamed up with Gulf Winds International to discuss how these massive jury awards are driving insurance rates up and taking a lasting toll on carriers.
FreightWaves Director of Freight Intelligence Zach Strickland and Texas Trucking Association President John Esparza tackled the issue head-on in a recent video chat.
Jury awards against trucking companies continue to swell to higher and higher dollar amounts, and the problem appears to be getting worse. According to Esparza, $713 million was awarded across just nine cases between 2016 and 2019, with $590 million of that being awarded in the past two years alone.
Despite safer driving practices and falling accident rates industry-wide, this rash of nuclear verdicts has driven insurers out of the market and sent insurance rates skyrocketing. Esparza and Strickland discuss how companies can fight back in the video below.