Your insurance renewal came in. Same coverage. Same operations. No claims.

And yet—your premium jumped 20%.

If you’re wondering what changed, the answer isn’t on your job sites—it’s in courtrooms across America. Jury awards have exploded into the tens of millions, and insurers are passing the fallout straight to you.

Let’s talk about what nuclear verdicts are, why they’re driving up your rates, and what you can actually do about it.

What Is a “Nuclear Verdict”?

A nuclear verdict is any jury award that exceeds $10 million, often far beyond the actual damages in a case.

Between 2015 and 2022, verdicts in commercial trucking and heavy-equipment cases jumped more than 300%, and by 2023 the average “nuclear” verdict had reached roughly $25 million.

Why the term nuclear? Because these verdicts don’t just destroy one company’s balance sheet—they send shockwaves through the entire insurance market.

And you don’t need to be a trucking company to feel it. If you have a fleet, run job sites, or manage subs on projects where the public could be affected, you’re part of the same risk pool.

When a verdict goes nuclear, it doesn’t just blow out the defendant—it blows out everyone’s premiums.

Download our contractor-friendly breakdown and find out what you can do before the next one hits.

Why It’s Happening

There are three major forces behind this surge in nuclear verdicts:

1. “Reptile Theory” in the Courtroom

Plaintiff attorneys are using psychological tactics that appeal to jurors’ primal fears about safety—arguing not just that a company made a mistake, but that it put the entire community at risk. They’ll say: “If this company cut corners here, what’s stopping them from doing it on your street, near your family?” It’s designed to make jurors angry—and it works.

2. Social Inflation

Cultural attitudes have shifted. Many jurors see large companies as faceless and view big payouts as justice—whether or not the damages justify it.

3. Litigation Funding

Wall Street investors are financing lawsuits—often putting up millions—in exchange for a cut of the verdict. This lets attorneys turn down early settlements and hold out for nuclear paydays.

Example: In one recent construction-related auto accident, an injury that should have cost around $50,000 turned into a $25 million verdict after attorneys argued the company had “inadequate safety policies.”

That $25 million didn’t just hit one contractor. It hit the entire insurance market—and your renewal is part of the collateral damage.

These cases are popping up most in California, Florida, Texas, and Pennsylvania—all big construction states.

How This Hits Your Bottom Line

When verdicts go nuclear, insurers have to pay attention—and pay out.

1. Carriers are spooked. One massive verdict can wipe out an insurer’s entire annual profit. To recover, they raise rates across all contractors, not just the one that lost.

2. Reinsurance costs are soaring. The companies that insure your insurance carriers are raising their prices too, forcing every carrier to pass those costs downstream.

3. Defense costs are exploding. Even when companies win in court, defending a large claim can cost hundreds of thousands of dollars in legal fees.

You see it on your renewal:

Higher premiums (20–35% jumps are common)
Stricter underwriting questions
Difficulty finding affordable umbrella coverage

It’s frustrating—especially if you’ve had a clean record. But it’s not that you did something wrong. Your premium isn’t rising because you changed—it’s rising because the system did.

What You Can Do About It

You can’t control jury behavior, but you can control your documentation, your safety culture, and how you present your company to insurers.

Here are five steps every contractor should take:

1. Document Safety Programs (Even Informal Ones)

Keep written records of toolbox talks, training sessions, and site inspections. If an accident happens, documentation is your best defense against claims that you “didn’t take safety seriously.”

2. Review Your Auto and Umbrella Limits

That standard $1 million liability limit may not be enough anymore. Talk to your broker about increasing limits or adding an umbrella policy—it’s often cheaper than you think.

3. Vet Subcontractor Insurance

Your sub’s accident can become your claim if they’re underinsured (see my article: Do Subs Really Need Insurance?). Before they step on site, verify their COIs and make sure their limits match the risk—ideally $1 million minimum for GL and auto.

4. Install Dash Cams and Telematics

Video evidence can kill a $25 million claim before it starts. A single dash-cam clip proving your driver wasn’t at fault stops lawsuits cold—and costs less than $200.

5. Talk to Your Broker Early

Don’t wait for renewal season. Meet mid-year to review your operations, discuss exposures, and get ahead of any red flags underwriters might see.

At Dragonfly Insurance, we’re spending more time than ever helping contractors document their safety programs and show underwriters why they deserve better rates. (Let us know if we can help you.)

Three Mistakes to Avoid

Don’t make it worse by doing the easy things wrong:

Ignoring underwriter questions about safety programs
Assuming your current limits are still adequate
Waiting until renewal to address red flags

A sloppy COI or unanswered underwriting email can cost you five figures at renewal.

The Big Picture for 2025 and Beyond

Nuclear verdicts aren’t slowing down—2024 saw over 100 verdicts exceeding $10 million, and 2025 is on pace to break that record. Some states are pushing tort reform, but until that happens, you’re playing defense.

The best defense isn’t just insurance—it’s proof. Proof that your team operates safely. Proof that your subs are covered. Proof that you’ve done the work to manage risk.

Because in today’s market, a documented safety culture is worth as much as a clean loss history.

Closing: Control What You Can

You can’t control the courtroom, but you can control how you look on paper.

Document your safety. Tighten your contracts. Ask smarter questions at renewal. That’s how you protect your business from verdicts you’ll never see coming.

Questions about your coverage? Don't wait for the renewal shock. Let's talk now.

Next week: The bare-minimum safety program that actually works—and why underwriters are demanding it before they'll even quote your renewal.

Stay smart out there.

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Nuclear Verdicts: Why Your Insurance Just Got More Expensive