Rising claims, shrinking carrier appetite, and tighter underwriting are making it harder for collection companies to stay insured. The ones that document safety and think strategically about coverage will stand out.
By Pam Caron
Insurance remains a top concern for waste and recycling companies in 2025. Shrinking carrier capacity, rising claims costs, and tighter underwriting standards make securing the right coverage harder and more expensive for your business.
A mix of compounding pressures is reshaping today鈥檚 market. Fleet expansion and driver shortages fuel commercial auto claims. Massive jury awards, known as 鈥渘uclear verdicts,鈥� add pressure to the excess liability market. Additionally, more insurers are exiting certain high-risk lines, leaving fewer options available.
Still, with the right strategy, you can control your risk profile, improve access to coverage, and keep insurance costs manageable. It starts with understanding the conditions shaping the market and responding with clear, documented steps to strengthen your company鈥檚 insurability. That strategy begins with understanding the market forces and responding with clear, documented action.
Market Conditions Driving Today鈥檚 Insurance Landscape
Specific risks across the waste and recycling industry are driving rate hikes and stricter underwriting鈥攅specially in property, auto, and liability coverage. Here is where operators see the most significant pressures and what is driving those changes.
Auto Claims and Driver Shortages are Driving Rate Hikes
Waste and recycling fleets face growing challenges. Driver shortages have led many companies to onboard less-experienced drivers, while larger fleets and tighter scheduling increase exposure. At the same time, vehicle repair and parts costs have surged, turning minor incidents into expensive claims. Insurers are responding with:
鈥� Rate increases between 10 percent and 30 percent for auto liability and physical damage lines.
鈥� Greater scrutiny of safety programs, driver vetting, and incident documentation.
鈥� Requests for telematics data and motor vehicle record (MVR) tracking during underwriting.
To remain competitive, collection operators must show active safety controls鈥攏ot just policies on paper. This includes tracking telematics data over time, regularly analyzing driver behavior trends, and tying corrective actions to actual outcomes. Underwriters are increasingly asking for evidence of driver scorecards, coaching interventions, and near-miss incident logs鈥攅specially for fleets with tight delivery windows and high daily mileage.
Nuclear Verdicts are Reshaping Liability Coverage
In the courtroom, high-profile litigation is reshaping the liability landscape. Lawsuits involving large fleets are more aggressive and expensive. Plaintiff attorneys target waste and recycling companies with claims tied to distracted driving, poor maintenance records, or lack of supervision. These cases increasingly lead to 鈥渘uclear verdicts.鈥� That risk is pushing up costs in the excess liability market:
鈥� Many insurers are pulling back capacity or limiting policy limits
鈥� Rates are increasing by 10 to 40 percent, particularly for fleet-heavy businesses
鈥� Underwriters are asking more detailed questions and requiring stronger documentation
Simply stating that your operation values safety does not satisfy today鈥檚 underwriters. Show the actions your team is taking, the metrics you are tracking, the improvements you have made, and how leadership supports accountability across your organization. Being able to demonstrate documented changes after a past claim, such as updated SOPs or retraining, can influence how underwriters perceive future risk. These insights often matter just as much as your loss ratio.
Carriers are Exiting High-Risk Lines, Limiting Options
Property and liability markets are experiencing reduced capacity due to carrier exits and industry consolidation. Carriers are concentrating their appetite on well-run, well-documented operations, leaving many companies with fewer options, especially if they have had losses or operate across multiple risk categories. Even companies with relatively clean records may encounter 鈥渘on-renew鈥� decisions if they cannot show operational maturity and a consistent safety commitment. In a tighter market, those details become make-or-break factors.
That does not mean coverage is out of reach. It means that telling your company鈥檚 story effectively matters more than ever. Transparency, timely documentation, and a broker with deep industry experience can help your submission stand out and signal to underwriters that your company takes its risks seriously.
Alternative Structures are Gaining Traction
As market conditions tighten, many operators are rethinking how they finance risk. While traditional insurance structures dominate, alternative risk financing strategies are gaining attention among mid-sized and larger firms. These options include:
鈥� High-deductible structures, which offer premium savings for companies with a strong loss history and robust controls
鈥� Captive insurance models, either single-cell or group captives, which give companies more control over claims and pricing
鈥� Retrospective Rating Programs
These models are not one-size-fits-all, but they are increasingly viable for companies willing to invest in disciplined risk management and have the operational maturity to participate in shared-risk arrangements. If you are seeing significant year-over-year premium increases or running into coverage gaps, it may be time to evaluate whether alternative structures are right for your business.
Group captives are gaining traction among mid-sized haulers that want to stabilize pricing and gain more control over claims handling. When structured correctly, these models can also support peer benchmarking and shared loss prevention insights.
Steps to Strengthen Your Company鈥檚 Insurability
To manage insurance costs and stay competitive in a hardening market, focus on improvements that underwriters can clearly see and that directly reduce exposure. Here are five areas to focus on:
1. Strengthen fleet safety and driver training
鈥� Install telematics and dash cams to monitor driver behavior
鈥� Use SAFER scores as internal benchmarks and track improvements over time
鈥� Document driver onboarding, regular safety meetings, and disciplinary actions
2. Invest in fire prevention technologies
鈥� Deploy spark detection, thermal imaging, and automated suppression systems
鈥� Maintain a rigorous housekeeping program and schedule preventive maintenance
鈥� Document battery handling procedures and staff training logs
3. Manage environmental liability
鈥� Conduct pollution exposure assessments and update containment plans
鈥� Train staff on spill response and document all remediation processes
4. Evaluate alternative risk transfer options
鈥� Run feasibility studies on captives or high-deductible programs
鈥� Work with a broker experienced in ART design and administration
5. Build a strong safety culture
鈥� Make risk management a visible priority across all departments
鈥� Include senior leadership in safety planning and communication
鈥� Reward safe practices and track participation metrics
These strategies will not eliminate every risk, but they give underwriters confidence in your company鈥檚 controls and culture. Taking proactive steps now can position your business as a more attractive insurance partner, even in a challenging market.
Make Risk Management a Strategic Priority
Insurance market conditions may be challenging, but they are not insurmountable. With disciplined planning and updated controls, your company can still access the coverage it needs to operate and grow.
Focus on what you can control鈥攊nvest in risk mitigation, document your efforts, and work with partners who understand your business. When you prioritize risk management, you reduce losses, contain costs, and stay ahead of shifting insurance expectations. | WA
Pam Caron is a Senior Vice President and Waste and Recycling Practice Leader at Risk Strategies, a national full-service insurance brokerage firm with more than 150 offices across the country. With more than 25 years of experience as a commercial property and casualty insurance broker, Pam specializes in the waste and recycling industry. She has worked extensively with various waste and recycling companies, including waste haulers, recycling facilities, scrap metal, medical waste, landfills, e-waste, and manufacturers. Pam鈥檚 expertise extends to structuring alternative risk programs, such as large deductible programs, captives, and self-insurance. Alongside her team, she provides comprehensive risk management services, including safety and training programs, mock OSHA and DOT audits, and other risk mitigation strategies. Pam is an active member of the NWRA, having served as NWRA Women鈥檚 Council Past President and Fundraising Chair. She contributes to NWRA鈥檚 safety committee and education committee. Pam is also a dedicated supporter of the EREF and sponsors various events organized by the foundation. Pam鈥檚 commitment to the industry is further demonstrated through her role as a moderator and panelist at waste industry events throughout the year, where she shares her knowledge and insights with industry professionals. She can be reached at [email protected].