NUCLEAR VERDICTS
NUCLEAR VERDICTS
BY : MEAGHAN TYNDALE-WILLIAMS , CLCS ADVISOR , JGS INSURANCE , A BALDWIN RISK PARTNER
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n August of 2022 , a Florida jury handed down a billion-dollar verdict against two trucking companies . According to press reports , the crash occurred in early September 2017 , taking the life of Connor Dzion , a young man who had just begun classes as a freshman at the University of North Florida . This is an extreme example of what is known in the transportation industry as a nuclear verdict — jury awards that surpass $ 10 million .
The average verdict size for a lawsuit above $ 1 million involving a truck crash has increased nearly 1,000 % from 2010 to 2018 , rising from $ 2.3 million to $ 22.3 million , according to a study conducted by the American Transportation Research Institute . Such skyrocketing awards are driving up insurance rates for trucking companies as costs to insure them rise and carriers leave the market . To cut costs , large operators are scaling back on excess insurance , putting them at greater risk should they be involved in an accident .
The National Safety Council recently released a data analysis which found that just over 5,000 large trucks were involved in fatal crashes in 2019 , a 43 % increase from 2010 . And the number of injuries associated with truck crashes rose 7 % during that same period to 160,000 , with the majority of the injuries occurring to the occupants of other vehicles . It has gotten to the point where many trucking companies are finding themselves on the receiving end of large jury verdicts that often include high punitive damages . In some cases , these verdicts have even put trucking companies out of business , as they lack the necessary assets to pay the judgments .
NUCLEAR VERDICTS ARE ON THE RISE ACROSS THE TRUCKING INDUSTRY
One study found that there has been a tenfold rise in nuclear verdicts , with over 300 being handed down . Nowadays , a truck accident lawsuit involves more than just the incident itself . In addition to going after the driver , plaintiffs attempt to put the trucking company and its entire business under intense scrutiny .
TAKE STEPS TO AVOID THE POTENTIAL FOR NUCLEAR VERDICTS
There are things that trucking companies can do to reduce the likelihood of a nuclear verdict . Here are some proactive steps to take :
• Have strict requirements in place when going through the process of hiring a driver . Look for a clean driving record , free of prior violations or any actions that create a red flag .
• Install a remote monitoring program to stay on top of your current drivers and their behaviors on the road . Do these reviews on a quarterly basis to protect your company and to notify you of any red flags .
• Maintain ongoing drivers ’ training that includes reminders on how to drive during poor road and weather conditions .
• Partner with a service that continuously monitors your MVRs , eliminating the need for you to pull them and monitor them yourself . Things can happen between a company ’ s quarterly pulls that the employer may not be aware of that can be used against them in a lawsuit and viewed as negligence . Services to keep you informed include the following :
• Receive “ as they occur ” alerts for all driving violations , such as DWIs , speeding , illegal maneuvers , and more .
• Fleet carriers can also receive alerts for nondriving offenses ; license status changes due to suspensions , revocations , and expirations ; and medical certificate downgrades .
Though these steps don ’ t guarantee you will avoid a nuclear verdict , they will at least ensure that your drivers and your company are doing everything they can to promote safety on the road .
We are here to answer any questions you may have about how to protect your trucking company from the possibility of such extreme lawsuits . +
Meaghan Tyndale-Williams began her insurance career with Liberty Mutual in Commercial Lines as a Direct Sales Property & Casualty Producer . She won numerous sales contests and awards while at Liberty Mutual including 2008 Producer of the Year , Millionaires Club and Liberty Top Producer Club . In 2014 , after having her first of three children , she transitioned to JGS Insurance to be closer to home and began her current position as Insurance Advisor .
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