Your fleet insurance probably won't survive a nuclear verdict

What are the most common liability claims typically filed against trucking companies, particularly smaller motor carriers?

 The most common claims we see filed against trucking companies involve driver negligence and hours-of-service violations. Smaller motor carriers also often face claims related to improper driver vetting. This can involve a failure to screen out applicants with prior violations or a history of reckless driving. 

Are nuclear verdicts a concern for small trucking companies? Can they do anything proactively to avoid them?

Nuclear verdicts should be a serious concern for small carriers. According to CNBC, the average verdict value in major truck accident lawsuits increased from $2.3 million to $22.3 million from 2010 to 2018. While larger fleets may have the financial strength to withstand a hefty verdict, smaller fleets in the same situation can be at risk of going bankrupt.

 To avoid nuclear verdicts, carriers should be focused on preventing crashes in the first place through investing in driver training and maintaining federal safety standards. In addition, it’s also a good idea to invest in dashcam technology and maintain thorough driver hiring documentation.

What are the most common insurance coverage gaps you see for small trucking fleets? And how does that potentially hurt these companies?

One of the most concerning gaps we can observe in small carriers is liability coverage. While the federal minimum is $750,000, nuclear verdicts can far exceed that cost. Unfortunately, when a settlement exceeds a carrier’s policy limits, that company is responsible for paying the remaining costs out of pocket.

How should a trucking exec respond immediately after one of their drivers is involved in a crash? What are the key steps to take?

After a serious crash, it’s important to make sure the driver is safe and connected with legal counsel as soon as possible. If you can send someone to the scene, you should, for the sake of supporting your driver and documenting the scene. On your end, you should prioritize preserving dashcam footage and ELD logs before that data is overwritten or lost. Of course, it’s also essential to make sure the FMCSA post-accident drug and alcohol testing is completed on time.

What's the biggest thing a fleet owner can do to ensure, if they do end up in court, they have the right evidence to support themselves and their drivers?

Documented training records, complete driver qualification files, maintenance logs and enforced HOS policies can help trucking companies defend themselves in court. Dashcam footage is also one of the most valuable pieces of evidence a carrier can have to defend themselves. In some cases, it can completely exonerate your driver. However, that footage is only going to be useful if you take the steps to preserve it after the crash before it gets overwritten.