Uncertainty in the Commercial Trucking Industry

February 15, 2025

The commercial transportation industry is one of the primary economic drivers of the United States economy. The industry at large is familiar with continual changes stemming from environmental, trade, and regulatory concerns. With a new government administration taking the reins, the trucking industry is once again faced with new challenges.

In this article, we explore some of the changes the trucking industry is grappling with. Some of these changes require robust insurance coverages to protect against economic hardships and loss of property. To learn more about insurance solutions for the transportation sector, visit our Transportation page.

New Administration, New Challenges

Almost immediately after taking office, President Donald Trump went to work signing executive orders covering a broad range of industries and regulations. Among the groups affected are the nation’s commercial transportation businesses, which face an unprecedented shift in the industry’s trade policies and regulations.

Four categories of challenges have emerged:

• Trade Policies and Rising Costs: The administration’s tariffs on steel and aluminum have increased the cost of manufacturing and maintaining trucks and trailers. This has led to higher equipment costs for trucking companies, making fleet expansion and maintenance more expensive. Additionally, trade tensions and shifting import/export policies have disrupted supply chains, leading to unpredictable freight demand both on land and at sea.
• Fuel and Emission Regulations: Recent rollbacks on fuel efficiency and emissions standards have created uncertainty for trucking companies that invested in eco-friendly technologies. While deregulation may reduce compliance costs in the short term, fluctuating fuel prices and potential state-level environmental mandates could complicate long-term planning for fleet operators.
• Uncertainty in Electric Truck Adoption: The suspension of the National Electric Vehicle Infrastructure (NEVI) program, which funded EV charging networks, has raised concerns about the future of electric semi-trucks. Many companies that began investing in electric fleets to comply with sustainability goals now face uncertainty over whether the necessary infrastructure will be available to support widespread adoption.
• Infrastructure and Regulatory Cutbacks: Federal budget cuts to transportation agencies, including the Department of Transportation and the Federal Motor Carrier Safety Administration (FMCSA), could lead to reduced oversight of safety programs, delays in infrastructure projects, and fewer resources for highway maintenance. This could create more hazardous road conditions and logistical challenges for trucking companies.
• Risk Management Tools: Coverages for Commercial Transportation

As a valuable risk management tool, commercial transportation insurance is designed to protect companies and their assets from losses associated with property damage, accidents, and shifting demands in the supply chain.

In the face of sweeping changes to the industry and its regulatory agencies, commercial shipping companies must carefully evaluate existing insurance coverages and consider filling coverage gaps. Additional insurance solutions may include:

• Business Interruption Insurance: Supply chain disruptions caused by trade policy changes can lead to temporary business halts. Business interruption coverage helps trucking companies recover lost income when operations are impacted by events beyond their control.
• Environmental Liability Insurance: As emission standards shift, trucking companies may face regulatory fines or cleanup costs related to fuel spills and environmental incidents. Environmental liability coverage can help manage these unexpected expenses.
• Contingent Risk Policies: If certain states impose stricter emission regulations than federal guidelines, specialized policies can help companies meet compliance requirements while maintaining operations across state lines.
• Technology and Cyber Insurance: As electric trucks rely more on advanced software, cyber liability insurance can safeguard against potential cyberattacks, system failures, and data breaches in electronic fleet management systems.
• Workers’ Compensation & Occupational Accident Insurance: If owner-operators must be reclassified as employees under labor law changes, trucking companies may need to adjust their insurance coverage. Workers’ compensation provides coverage for employee injuries, while occupational accident insurance offers an alternative for independent contractors.
• Excess Liability & Umbrella Coverage: With potential cutbacks in regulatory oversight, companies may face greater legal exposure in accident lawsuits. Umbrella policies extend liability coverage beyond standard limits, offering additional protection against catastrophic claims.

By partnering with an experienced insurance underwriter, trucking companies can ensure they have the coverage they need to protect against both expected and unforeseen risks associated with changing regulatory environments, safeguarding their business from financial losses and operational disruptions. ◼