The Impact of Nuclear Verdicts on Transportation: How to Protect Your Fleet

Nuclear verdicts are affecting many industries, but few feel the impact more acutely than the transportation sector. Large jury awards have become more common, and for fleet operators, the risk is too great to ignore. Learn about trends in liability and how to protect your company from ruinous verdicts.

Nuclear Verdicts in Trucking

A California jury awarded $52.1 million to a man and his wife stemming from a 2021 collision between a motorcycle and a truck, according to Freight Waves. The truck was owned by Montecristo Trucking, and it was transporting a load that had been subcontracted out twice. All three companies were defendants in the lawsuit.

In Utah, a family was awarded $81 million in what might be the largest civil verdict ever awarded in the state. According to Freight Waves, while in a crosswalk, the family’s son was struck and killed by a day cab pulling a flatbed trailer operated by a building supply company.

These verdicts are massive, but they’re far from the biggest in the country. Freight Waves gives multiple examples of other nuclear verdicts, including a 2024 verdict for $141.5 million, a 2020 verdict for more than $400 million, and a 2021 verdict of more than $900 million. All three of those verdicts occurred in Florida.

Jury verdicts have gotten so large that they require a new name. While the term “nuclear verdict” often describes awards of at least $10 million, the term “thermonuclear verdict” is sometimes used to describe awards of at least $100 million. According to Marathon Strategies, there were 20 thermonuclear verdicts in 2022.

The Business Impact of Nuclear Verdicts

Trucking companies don’t always survive nuclear verdicts. In one example, iTrucker reports that a family-owned trucking company based in Arkansas had to shut down after 19 years in business due to a nuclear verdict. The initial award was for $23 million, and even though it was later lowered to $7.5 million, the award and subsequent insurance rate hikes were too much for the company.

Even companies that aren’t hit with nuclear verdicts may pay the price in the form of higher insurance premiums.

The Council of Insurance Agents & Brokers reported that the property and casualty market has softened as of the first quarter of 2026. Rates were down by an average of 1.2% across all lines and account sizes, marking the first time the property and casualty market has seen an average decrease since the third quarter of 2017.

However, commercial auto rates were still up by 5.8%, the largest rate hike of all lines. AM Best called commercial auto “one of the worst-performing P/C segments over the last ten years,” citing net underwriting losses of more than $5 billion in 2023 and 2024. While distracted driving and traffic congestion contribute to claim frequency, social inflation and nuclear verdicts are contributing to claims severity.

Managing Your Fleet’s Risks

Whether you operate a single truck or a large fleet, you could be affected by the nuclear verdict trend.

Explore your coverage options. As verdicts climb ever higher, fleet operators may be interested in obtaining larger coverage limits. However, doing so may be difficult due to capacity and affordability issues. To secure adequate coverage, it may be necessary to layer coverage, accept large retentions, or leverage captive insurance solutions.

• Establish a culture of safety. A commitment to safety can bring multiple benefits. By decreasing the likelihood of collisions, you can support worker well-being and make your company a more attractive employer. A better claims history can also help you secure lower premiums, in commercial auto as well as workers’ compensation lines. And if a collision does occur, your culture of safety can be used in your defense. Assess your hiring and training practices, as well as your day-to-day policies, to identify any weaknesses that can be targeted for improvement.
• Leverage technology. In-cab cameras and AI-powered driver monitoring tools allow you to identify dangerous driving habits and fatigue early. In the event of a crash, dashcam footage could also provide evidence. As long as your drivers are driving safely, this evidence could be used in your defense.
• Have documentation ready. If your company is sued, you’ll need to demonstrate that you were not negligent. This requires thorough documentation. Be ready to show evidence of how you’re committed to safety in your hiring, training, and operations.
• Exercise care with subcontractors. When you subcontract work or hire independent contractors, you may still face liability for any injuries that occur. You can limit your exposure by vetting your subcontractors, requiring proof of insurance, and using contracts that spell out liability and indemnification issues clearly.

Are your risk management practices strong enough to withstand the nuclear verdict trend? Heffernan Insurance Brokers can help you build a risk management and insurance program designed for today’s liability exposures. Learn more about our insurance solutions for the transportation sector.