Broker Insurance Frenzy: 3-Digit Cost Hikes Ahead

Brokers of freight are experiencing a surge in insurance costs due to two major legal verdicts. Thom Albrecht breaks down how the May 14 Montgomery Supreme Court decision and July 23 CH Robinson $135 million judgment are causing double-digit to triple-digit premium hikes. The turmoil has prompted brokers to rethink coverage limits and renewal strategies.

Some underwriters have exited the market, reducing options for brokers. Primary coverage, the first $5 million of freight broker auto liability, has seen mid-double-digit increases, while excess coverage above $5 million faces far worse hikes. Brokers with $30 million to $40 million in gross revenues could face annual premiums ranging from $30,000 to $40,000 for excess coverage.

Underwriters are pulling back on capacity, not just raising prices. Brokers are urged to adopt consistent, auditable, and defensible processes (CAD) to navigate the new liability landscape.