Questions to Ask Brokers About Claims Handling, Subrogation and Litigation Support

Content pillar: How to Compare Insurance Providers, Brokers & Policies — Trucking & Logistics Insurance (USA)

Effective claims handling, robust subrogation processes and proactive litigation support materially reduce total cost of risk for trucking and logistics fleets. When you solicit brokers during RFPs or renewals — especially in major markets like Dallas–Fort Worth, Los Angeles, or Atlanta — you must probe beyond price to understand how brokers manage claims, recoveries and disputes. Below are the most important, practical questions to ask plus metrics, sample RFP clauses and red flags to watch for.

Why claims handling, subrogation and litigation support matter for trucking fleets

• Claims are the primary driver of premium increases. A single catastrophic loss or poor handling can spike audit exposures and loss history for years.
• Subrogation recovers costs from at-fault third parties, reducing net loss. Effective subrogation teams can materially lower a fleet’s loss ratio.
• Litigation support preserves coverage, accelerates settlements and limits indemnity exposures. Early involvement of counsel and claims professionals avoids late surprises in discovery, bad-faith exposure or uninsured defense costs.

Evidence and market context:

• Average annual commercial truck insurance costs in the U.S. typically range from roughly $6,000 to $25,000 per power unit depending on operation, radius and cargo — owner-operators and small local fleets sit at the low end while long-haul or hazmat operations are at the high end. (See The Zebra and Insureon for national cost ranges and drivers.)
  • The Zebra — Commercial truck insurance cost guide: https://www.thezebra.com/insurance-guides/commercial-truck-insurance-cost/
  • Insureon — Trucking insurance cost & drivers: https://www.insureon.com/industry-specific-insurance/trucking#cost
• Use FMCSA data to evaluate safety performance and claim frequency trends for U.S.-based fleets: https://www.fmcsa.dot.gov/

Top questions to ask a broker — Claims Handling

1. What is your claims philosophy for trucking clients? (Triage → containment → resolution)
2. Do you provide a 24/7 claims escalation path for serious incidents (jackknife, ROR, hazmat release)? Ask for contact names and SLA times.
3. Do you offer a dedicated claims manager or team assigned to our account? If yes, request typical caseload per claims manager.
4. What is your process for loss triage and reserve-setting? Ask how often reserves are reviewed and adjusted.
5. How do you coordinate between carrier adjusters, third‑party administrators (TPAs) and our safety/operations teams? Request examples of unified incident response plans.
6. Can you provide KPIs from similar trucking clients for:
   • Average days to first contact after notice of loss
   • Average days to indemnity settlement (broken down by minor, moderate, catastrophic)
   • Subrogation recovery rate (gross and net)

Suggested KPI targets for competitive brokers:

• First contact: within 24 hours for injury/property, 2 hours for severe/OSHA/Hazmat
• Reserve review cadence: weekly for active claims, monthly for long-tail
• Subrogation recovery rate: 30–60% gross recovery on qualifying third-party losses (varies by exposure and evidence) — confirm with broker case studies.

Top questions to ask a broker — Subrogation

1. Do you manage subrogation in‑house or through a partner? In-house teams generally accelerate recoveries and provide better claim control.
2. What is your average subrogation recovery percentage for motor carrier claims in our region (e.g., Southern California)? Ask for data segmented by cargo vs. liability vs. physical damage.
3. How do you handle split-liability or comparative‑fault states? (Understand tactics in California, Texas, Georgia.)
4. Do you pursue recoveries for both indemnity and defense costs? This impacts net claim cost.
5. What tech do you use to document and support subrogation (dashcam, in-cab ELD data, scene photos, witness statements)? Ask for examples of successful recoveries using telematics.
6. How are recovered funds credited back to our account or credited to premium? Get the firm policy on netting recovered amounts vs. carrier accounting.

Top questions to ask a broker — Litigation support and panel counsel

1. Do you maintain a panel of trucking-specialty defense counsel? Request names, bios and jury verdict/settlement examples.
2. How do you select and rotate counsel for geography-specific risks (e.g., Los Angeles County superior court, Harris County courts)?
3. Who decides on settlement authority for high-dollar claims? Define thresholds and required approvals.
4. What evidence‑preservation procedures do you deploy (spoliation letter, ELD/data preservation, forensic imaging)?
5. How do you coordinate discovery, witness prep and deposition strategy with our SME drivers/dispatchers?
6. Can you deliver litigation budget forecasts and cost-to-close estimates? Request historical variance to actuals.

Sample RFP language & KPIs to include

Include these items in your RFP or broker selection scoring to make claims/subrogation/litigation comparability objective.

• Mandatory deliverable: 24/7 claims escalation roster and SLA (response within 2 hours for catastrophic claims).
• KPI reporting: monthly claims dashboard including new claims, total incurred, incurred but not reported (IBNR) estimate, reserve changes, subrogation opens/closures and recovery percentage.
• Service level: dedicated claims account manager with max 50 open claims concurrently.
• Subrogation obligation: pursue recoveries for indemnity and defense costs; monthly subrogation recovery reporting.
• Litigation budget: 30/60/90 day forecast for open litigated matters and a variance-to-actual explanation.

You can adapt text from an RFP template such as our RFP Template and Checklist for Trucking and Logistics Insurance Procurement.

Comparison matrix: Key claims & litigation services to score brokers

Use a similar matrix in your bid evaluation: see Bid Evaluation Matrix: Scoring Carriers on Coverage, Service and Cost for Trucking Insurance.

Practical negotiation points and red flags

• Negotiation asks:
  • Require a minimum subrogation recovery reporting cadence and case examples.
  • Contractualize SLAs and default remedies for missed SLAs.
  • Request deductible protection or indemnity holdbacks on slow subrogation cases.
  • Insist on a right-to-review counsel selection and attorney CVs for top-tier exposures.
• Red flags:
  • Vague answers on who actually performs recoveries (broker vs. outsourced vendor).
  • No metrics or unwillingness to supply historical recovery percentages.
  • High caseload per claims adjuster (>100 active trucking claims) — indicates lower attention.
  • No process for ELD/telematics preservation or refusal to coordinate immediately after a loss.

For additional red-flag examples tied to policy terms and wording, consult Red Flags in Carrier Proposals: Questionable Exclusions and Hidden Limitations.

Selecting a broker: evidence to require before award

• Three client references from similar fleet size and operation type in your state (e.g., CA, TX, GA) with contactable loss control and claims directors.
• Sample monthly claims dashboard and anonymized recoveries on three closed subrogation matters.
• Proof of panel counsel relationships in your core jurisdictions (Los Angeles County, Harris County, Fulton County).
• Contractual SLAs and remedies (service credits, termination rights).

For evaluation criteria and weighting during selection, see our primer: Broker Selection Criteria: Finding a Trucking and Logistics Insurance Broker That Delivers.

Closing: what to prioritize by market

• In high‑litigation jurisdictions (Southern California, Houston/Harris County, Northern New Jersey), litigation support and panel counsel carry extra weight.
• In high-theft or cargo-high-risk routes (I-95 corridor, I-10 freight lanes) prioritize subrogation + telematics integration.
• For local/regional short‑haul fleets (e.g., metro Dallas or Atlanta), rapid on-scene triage, repair network and quick settlement cycles can reduce rental/operational downtime and overall insured cost.

Data-backed broker selection and a well-crafted RFP that includes the claims, subrogation and litigation requirements above will protect your fleet and reduce total cost of risk. For detailed carrier financial strength, claims service evaluation and scoring methods to compare proposals, review: How to Evaluate Insurance Carriers: Financial Strength, Claims Service and Specialty Expertise.

Sources

• The Zebra — Commercial truck insurance cost guide: https://www.thezebra.com/insurance-guides/commercial-truck-insurance-cost/
• Insureon — Trucking insurance: costs & coverage considerations: https://www.insureon.com/industry-specific-insurance/trucking#cost
• FMCSA — U.S. Federal Motor Carrier Safety Administration data & safety resources: https://www.fmcsa.dot.gov/