What is a nuclear verdict, and how does it affect my fleet's insurance?
Commercial insurance broker
A nuclear verdict is a jury award so large that it far exceeds what the case would traditionally be expected to be worth, and trucking has become one of the industries most associated with them. The term is generally used for verdicts well beyond the typical value of the underlying injuries.
For fleet owners, the impact shows up in a few ways. First, insurers price auto liability with the knowledge that a single serious accident could produce an outsized award. That pushes up primary auto rates and, especially, the cost of umbrella and excess coverage. Second, insurers have become more cautious about how much limit they'll offer on one account, which can mean building a tower of coverage from multiple insurers. Third, underwriters look harder at the things a plaintiff attorney would use against you: hiring practices, driver qualification files, training records, hours-of-service compliance, maintenance, and how you responded to prior incidents.
You can't control a jury, but you can control the record. Companies that hire carefully, document training, maintain equipment, review telematics and camera data, and act on what they find are in a stronger position, both in front of an underwriter and in front of a jury. It's also worth reviewing whether your limits still make sense given your operations and the venues where you run.