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Broker Insurance Costs Skyrocket After Court Ruling
27 Aug
Summary
- Broker insurance premiums are expected to rise significantly following the Montgomery decision.
- One large broker saw excess coverage costs increase from $3 million to $10 million.
- The number of underwriters for broker auto liability has shrunk, increasing costs.
The insurance market for trucking brokers is facing significant upheaval following the Supreme Court's Montgomery decision in May 2026. This ruling eliminated liability and negligence protections previously afforded to brokers. Industry analysts anticipate substantial increases in insurance premiums, with estimates suggesting large brokers could see rates rise by mid-teens to mid-20s percentages.
Recent renewals highlight the severity of this shift. One unidentified "top 10" freight broker experienced a threefold increase in its liability insurance. Furthermore, a large broker recently renewed its excess coverage, with costs escalating from $3 million to $10 million above existing primary layers. This volatility has been exacerbated by other legal decisions, creating a challenging environment for brokers seeking adequate coverage.
The market for broker auto liability insurance is contracting, with only about ten underwriters currently involved, a number expected to decrease further. This consolidation, coupled with recent exits by insurers, limits options and drives up costs for brokers. The situation remains fluid, with premiums fluctuating significantly in the months following the Montgomery decision.
