Fleets can reduce risk of nuclear verdict

From Transport Topics.

Nuclear verdicts can be detrimental to motor carriers and their insurance rates, but carriers can mitigate risk by utilizing technology, documenting and sharing safety efforts, and taking advantage of the first 24 hours if a claim occurs.

“Companies that have subscribed to a safety culture and live and breathe it have stabilized premiums and don’t have a fear of nuclear verdicts because there are very few gaps that can be exposed,” said Bryan Smith, vice president at HUB Insurance.

The largest contributing factors to nuclear verdicts typically revolve around safety statistics, a lack of hiring and training documentation, and the lack of defense, such as cameras. Record keeping and technology can take away the argument that there is a systemic failure.

The primary detonator of nuclear verdicts are systemic issues within the company rather than the specific facts of an accident, which is why documenting safety strategies is critical.
“The idea is to hit carriers with a large verdict to change their behavior,” said Doug Marcello, an attorney and chief legal officer for Bluewire, a software provider that helps fleets manage vulnerabilities. “We want to say there is a risk there, but there is an outweighing of that risk with what we can do for safety.”

Technology — including active braking systems cameras and telematics to monitor behavior — demonstrates a commitment to safety. However, technology only reduces claims and premiums if carriers take action on the information it generates, said Dan Cook, principal and practice leader at insurance broker TrueNorth.

See the complete article online at Transport Topics.