Insurance industry struggles to absorb costs of ELD mandates and escalating verdicts

Nuclear verdicts, liability inflation reshaping coverage limits

In New Jersey, for example, new minimum limit thresholds kick in for vehicles exceeding 26,000 pounds in gross vehicle weight, prompting carriers to revise coverage strategies. “Some carriers want to limit their capacity to a million,” Smith said, referencing the growing concern over so-called nuclear verdicts – jury awards that reach well into seven or eight figures. “Because if you’re offering $1.5 million, if you have a claim over $1 million, chances are, you’re probably paying limits for that one.”