Commercial trucking insurance is more than a regulatory requirement. For commercial carriers, trucking insurance is an essential safety net against costly mistakes. Too many trucking companies have found themselves in a real-life horror story when inadequate insurance, poor planning, a lack of experience or knowledge, or an unlucky accident combined to create a costly nightmare.
This article examines real-life trucking insurance horror stories to help other commercial trucking owners avoid their fate.
1. Driver and Carrier Lose Multi-Million-Dollar Claim
The first incident involves a commercial driver crossing a state line in a tractor-trailer. While merging onto the interstate, the truck “jackknifed,” which means the trailer swung out into the road (in this case, the middle lane of the interstate).
The trailer swung into another driver on the road, who suffered back, head, and shoulder injuries as a result of the crash. According to the subsequent lawsuit, the driver’s injuries warranted a significant judgment of $2.6 million against the commercial driver, who was deemed at-fault for the accident.
However, the trucker fled the country during the proceedings, breaching the insurance policy’s cooperation clause. This action allowed the insurer to sue the driver and his trucking company. The insurer also denied responsibility for compensating the injured driver due to the at-fault driver’s breach of cooperation.
In the end, the trucker’s failure to fulfill the insurance company’s requirements prevented the carrier or the victim from receiving the paid judgment from the insurer, leaving them both without compensation for the accident. Carriers can avoid the same fate by reading the insurance policies relevant to their case and doing everything in their power to retain their eligibility for compensation, including making sure that any policy cooperation clauses are upheld.
2. Fatigued Driver Kills Five
While driving on the interstate, a trucker crashed his tractor-trailer into an SUV carrying seven first-year nursing students. The trailer was going 68 mph, fast enough to crush the engine of the car, leading to an explosion in which five of the students tragically died at the scene.
The trucker claimed to have been awake at the time of the accident, which was around 6 a.m. However, a civil suit filed against the trucking company by the deceased students’ families uncovered that the trucker had been fired from at least one other trucking job in the past due to falling asleep at the wheel. In that previous incident, the tractor-trailer was totaled.
Due to this investigation, the trucker accepted a plea deal to avoid a life sentence in prison, ultimately being sentenced to five years in jail and five more on probation. The trucker accepted responsibility for the events, though tests revealed no drugs or alcohol in his system at the time of the crash. The commercial carrier paid $78 million to the victims’ families to settle their civil suit, plus an additional $200,000 as a compulsory education fund.
This incident emphasizes the importance of hiring drivers without prior convictions, accidents, or terminations. Due to driver shortages, many trucking companies are tempted to make compromises. However, knowingly hiring an at-risk driver should prompt a re-evaluation of the company’s insurance protection. On the other hand, only hiring drivers with clean records can mitigate risk, keep premiums low, and even protect people’s lives.
3. Claim Denied Due to Policy Exclusion
In the final case study, a trucker was hauling timber for a commercial carrier when he crashed into a bus, which was carrying six people (5 passengers and the driver). The crash resulted in 6 lawsuits being filed to compensate the victims for their injuries.
The insurer filed a complaint, which argued that no relevant insurance policy had been purchased by the owner of the trucking business. The insurance the owner bought for his drivers was allegedly a nontrucking policy, which could not cover the damages if the driver could be proven to be engaged in business-related cargo transport at the time of the accident.
After reviewing the insurance company’s motion, the court sided with them against the trucking business, stating that since the driver was being compensated to transport commercial cargo, the policy exclusions prevented the insurer from being responsible for any claims resulting from the accident.
This story emphasizes the significance of having the right type of insurance policy for the company’s needs, including maintaining commercial coverage for commercial activities.
Partner with the Trucking Insurance Advisors at Pro Insurance Group to Avoid Costly Claims
At Pro Insurance Group, our team of experts advises commercial trucking companies on how to assemble the right insurance policies for their situations. These horror stories represent drivers and trucking company owners who lacked the proper planning and perspective when planning their insurance coverage.
To avoid a similar fate, contact our team today to personalize, update, and maintain commercial trucking insurance policies that meet your needs and prevent costly incidents like these.