Landstar's insurance and claim costs hit $55.3 million
Landstar reported its third-quarter insurance and claim costs rose to $55.3 million from $33.0 million a year earlier, even as its BCOs improved DOT accident frequency 5%.
What happened
Landstar System reported on Oct. 27 that its third-quarter insurance and claim costs were $55.3 million, up from $33.0 million a year earlier. Landstar said the total includes about $13.0 million of adverse actuarial adjustments to its claim reserves and $8.0 million from settling two earlier crash claims: a 2024 brokered truck accident and a 2025 accident involving one of its BCOs, the independent contractors leased to Landstar. CEO Frank Lonegro said the company is "not immune to the challenges of the insurance and claims inflation prevalent in our industry."
Why it matters
Landstar said its BCOs improved DOT accident frequency 5% from a year earlier, so claim costs rose even as crash frequency fell. FreightWaves reports insurance expense reached 9.4% of BCO revenue, up 2.2 percentage points from a year earlier, and ties the climb to a spike in nuclear verdicts. Landstar's release says its insurance-related costs mainly cover premiums for commercial auto liability, general liability and cargo coverage, plus the costs of claims under those programs.
What to consider
Claim costs can keep growing long after a crash, through reserve changes and settlements. Keep your accident register and copies of the accident reports your state or insurer requires for three years, as 49 CFR 390.15 requires. 49 CFR 390.15 on eCFR · Landstar's Oct. 27 release
Sources
- Landstar via GlobeNewswire (Oct. 27, 2026)
- FreightWaves (Oct. 27, 2026)
- eCFR, 49 CFR 390.15 (last amended Nov. 17, 2023)
Reporting and records credited to the sources above, Oct. 27, 2026. We link to the original and add what it means for carriers.
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