Commercial trucking has always carried inherent risk, but the liability landscape has shifted dramatically in recent years. The number of lawsuits filed against motor carriers has grown at an average annual rate of 3.7% over the past decade, with nuclear verdicts — awards exceeding $10 million — surging in both frequency and size.
Ongoing litigation pressure is driving commercial auto premium rates higher, with some companies reporting increases exceeding 20%. Underwriters are responding by scrutinizing more than just the number of claims fleets have at renewal. How quickly claims are reported, how reserves are managed, and whether a fleet can demonstrate a clear trend toward reducing claims severity are all increasingly important in pricing decisions.
For drayage and port trucking operators, reporting a claim the same day it occurs gives insurers the ability to assign an adjuster, reach the claimant and begin building a factual record before the situation escalates. As time passes that window closes, increasing the likelihood of litigation and the chance that a relatively minor incident becomes a six-figure liability.
Having a claims management plan in place before an accident occurs is one of the most direct ways fleets can control costs, reduce litigation exposure, and build a stronger case for favorable pricing at renewal.
Follow these 4 keys to build a strong claims program.
Building a strong claims management program starts with four core practices, each designed to reduce exposure, speed up response and give your broker the data it needs to negotiate on your behalf.
#1 Designate a point person.
Every organization needs one person who “owns” the claims process. Drivers and dispatchers should know exactly who to call the moment an accident happens. Without a clear owner, critical early steps can get delayed or missed entirely. Establishing clear accountability from the start can prevent a manageable situation from spiraling into a costly, protracted claim.
#2 Put your protocols in writing.
Accident-handling protocols should be in writing before an incident ever occurs. Documentation should cover:
- Who calls the police;
- Who contacts the insurance carrier; and
- When escalation is required.
For minor incidents, an email to your carrier may suffice for initial reporting. However, severe injuries or fatalities typically warrant a direct call to the claims line, which can get an adjuster on scene within hours.
#3 Partner with a broker that specializes in trucking.
Not all brokers operate the same way. Some primarily handle policy placement and then step back. The right one will function as an extension of your safety team, conducting mock claims scenarios before accidents happen so your team feels confident responding when they do. Brokers with dedicated claims technology can also streamline first notice of loss and centralize documentation, reducing the administrative burden on your team during an already stressful situation.
#4 Conduct claims reviews and loss run analyses on a regular basis.
Waiting until renewal to look at open claims and reserve accuracy is too late. Regular reviews give you and your broker time to identify trends by driver or location, address problem areas and build the kind of documented loss history and improvement narrative that underwriters want to see when making pricing decisions. In a challenging auto liability market, organizations that walk into renewal with clean data and a clear picture of how they’ve addressed past claims are in a far stronger negotiating position.
Claims readiness is a year-round discipline.
In a litigation environment that continues to put transportation companies in the crosshairs, what operators do before an accident happens matters as much as what they do after. Investing in the right systems, processes and partners before a claim arrives can keep manageable situations from snowballing into something far more serious and help keep insurance costs under control.
Dan Wilhelm, CIC, is the transportation practice leader for global insurance brokerage Hub International. He has more than 25 years of insurance experience, and a strong entrepreneurial background. He specializes in complex risk for all lines of coverage for middle market and large accounts related to automobile, construction, manufacturing, food processing, distribution and transportation. He is licensed in property and casualty as well as life and health. Dan helps develop cost-effective and comprehensive insurance programs for all areas of coverage.
