$2.75M Dump Truck Settlement Puts Excess Liability Limits in Focus

A former physician who seriously injured after being struck by a city-operated dump truck will receive a $2.75 million settlement from the city of Troy, New York, in a case that reflects the significant liability exposure municipalities and commercial fleets can face after serious vehicle accidents. The city will pay $1 million, and the insurer will pay the remaining $1.75 million, the Times Union reported on Aug. 21.

The woman, who is in her 80s, was reportedly walking on Plum Avenue in August 2025 when she was struck by a backing recycling dump truck owned and operated by the city. She sustained injuries to her head, body, limbs, and nervous system, including multiple fractures to her left leg, according to the lawsuit. She underwent multiple surgeries and skin grafts and now lives in a nursing care facility in New Jersey.

“My initial reaction was I am surprised they got out of the claim for as little as they did, especially with the extended injuries that she had,” said Buddy Taylor, Director, Transportation, Burns & Wilcox, Brokerage Division, North Dallas, Texas. “When you have disability and injuries to the nervous system, that is usually one of the telltale deadly sins of a claim. Loss of a limb or trauma can get the claim potentially going much larger.”

When you have disability and injuries to the nervous system, that is usually one of the telltale deadly sins of a claim. Loss of a limb or trauma can get the claim potentially going much larger.

Municipalities, trucking companies, and other fleet operators typically rely on Transportation Insurance policies including Auto Liability Insurance and Excess Liability Insurance to help cover expenses related to third-party bodily injury claims. As claim costs increase, higher liability limits are often necessary, said Chris Shelby, Broker, Burns & Wilcox, Brokerage Division, North Dallas, Texas.

“We have seen situations, often with younger individuals who are in law school or medical school, where an accident like this that causes permanent disability can lead to $10 million-plus for the claim,” he said. “It is very important to carry Excess Liability.”

Claim costs rising ‘across the board’

According to the Times Union, the lawsuit alleged the recycling truck hit the woman while she was walking and claimed the accident was caused by the negligence of the truck’s driver and the city, including improper maintenance and operation of the vehicle and a failure to follow traffic laws regarding pedestrians.

Another recycling truck accident occurred in May, when a pedestrian sustained life-threatening injuries after being struck by a recycling truck in San Francisco, the San Francisco Chronicle reported. In November of 2025, a jury in New York issued a $50 million verdict after a pedestrian was struck by a sanitation truck while walking, the New York Law Journal reported. In July last year, a jury ordered the city of Los Angeles to pay $48.8 million to a man left in a coma after being hit by a sanitation truck while crossing the street at a crosswalk, the Los Angeles Times reported.

Claim costs are rising “across the board, all over the country,” Taylor said.

“It varies by the extent of the injury and the degree to which the at-fault party was negligent,” he explained. “The venue can really affect it to a large degree, as well.”

Beyond immediate medical costs, claims involving permanent disability may account for future treatment, lost income, pain and suffering, and the impact of the injury on a spouse or family. In the recent dump truck case in Troy, New York, the lawsuit included a claim that the woman’s husband had been deprived of her companionship as a result of her injuries, the Times Union reported.

Permanent injuries can quickly escalate the cost of a claim, Shelby said, making Excess Liability Insurance critical for businesses with significant auto risks. “Defense costs are rising, as well as all costs of claims. They have only gone up and up,” he said. “On a lot of contracts now, a trucker has to carry Excess Liability Insurance.”

Defense costs are rising, as well as all costs of claims. They have only gone up and up. On a lot of contracts now, a trucker has to carry Excess Liability Insurance.

Despite a “tough market” for this type of coverage amid rising claim costs, “we always come through with a solution,” he said. “On our end, there is always a solution available.”

Understanding liability limits

Without Excess Liability Insurance limits, many companies may not be able to recover from a large verdict or settlement, Taylor said. “A lot of business owners do not have $1.7 million in cash lying around to pay a claim over and above their Auto policy,” he said. “I have seen it many times in my career. Having to pay a large verdict was the straw that broke the camel’s back for a lot of business owners, and they had to close their doors.”

A lot of business owners do not have $1.7 million in cash lying around to pay a claim over and above their Auto policy.

Even when a trucking contract does not require higher limits, the additional coverage “could save you from going out of business,” Shelby agreed.

Fleet operators should pay attention to policy structure when evaluating insurance options. For example, Shelby said, while a typical $1 million Auto Liability Insurance limit may apply separately to each covered occurrence, some lower-cost policies include an aggregate limit that can be depleted by claims during the policy period. Defense costs may also be covered inside or outside of the limits. “The markets we have offer defense outside of the limit,” he said. “That is the better option.”

Depending on a trucking company’s operations, additional endorsements or policies may be needed.

“For example, if a trucker is driving down the road and they have a wreck, the fuel in their fuel tank might spill onto the pavement and damage someone or some property,” Taylor said. “Because it is a pollutant, some Excess policies will not cover the claim if it exceeds the $1 million Auto Liability limit. You have to structure the Excess Liability policy to add an endorsement so that it can help pay for the cleanup costs.”

In other cases, a separate Transportation Pollution Liability Insurance policy may be required, he said.

Training, risk controls do not replace coverage

Following a serious loss, insurers typically want to know what safeguards are in place to prevent another incident, Taylor said. “Anytime we present a risk to an insurance company, one of the first things they always want to hear is, ‘What did they learn from this?’” he said.

This may include fleet maintenance records, vehicle-age requirements, policies prohibiting texting and talking while driving, documented driver training, and vehicle inspections. However, companies should understand that safety measures are not a substitute for adequate insurance coverage, Taylor said. “The better companies will do both,” he said. “We would rather be safe than sorry.”