Louisiana truckers urge lawmakers to lower insurance costs for small businesses

The Louisiana Legislature convened on April 22, 2025, at 9:30 AM in HCR-4 to discuss critical issues surrounding civil law, particularly focusing on the insurance challenges faced by the trucking industry. The meeting featured testimonies from various stakeholders, including business owners and industry representatives, who expressed their concerns regarding high insurance costs and the impact of litigation on their operations.

The session began with a discussion on the necessity of high insurance limits for commercial vehicles, especially for those operating in sensitive areas like ports and military bases. One speaker highlighted the "chilling effect" of large settlements, often referred to as "nuclear verdicts," which can deter businesses from operating in Louisiana due to fear of excessive liability. The speaker suggested that while a proposed $5 million insurance limit might be beneficial, it could be excessively high for many small operators, advocating for a more balanced approach to protect everyday truckers.

Mark Younger, a small business owner from West Baton Rouge Parish, shared his personal experiences with the burdens of insurance costs and regulations. He emphasized that the high cost of insurance has forced many local businesses to cease operations, leading to a reliance on out-of-state trucking companies. Younger recounted a specific incident where a minor accident resulted in a lawsuit that exceeded their insurance coverage, illustrating the financial risks faced by small trucking companies.

Colley Friesard, CEO of a trucking company, echoed these sentiments, detailing the struggles of maintaining a fleet under the current insurance climate. He expressed frustration over the need to work multiple jobs to support his business and employees, highlighting the unsustainable nature of the current system. Friesard urged lawmakers to take decisive action to reform insurance regulations to retain trucking companies in Louisiana.

Greg Stewart, founder of Safeway Transportation, also contributed to the discussion, noting the significant increases in insurance premiums that threaten job security for his employees. He called for limits on liability to prevent excessive claims that could jeopardize the livelihoods of many in the industry.

The meeting concluded with a consensus among the speakers that legislative action is necessary to address the insurance crisis affecting the trucking industry in Louisiana. Stakeholders emphasized the importance of creating a more conducive business environment to attract and retain trucking operations within the state, ultimately benefiting the local economy and consumers.

Overall, the discussions underscored the urgent need for reform in civil law and insurance practices to support the trucking industry, which plays a vital role in the state's economy. The legislature's next steps will be crucial in determining the future landscape for businesses operating in Louisiana.