Nuclear Verdicts are costing our industry big time and its not going away anytime soon. An accurate definition of a nuclear verdict is any financial award (generally over 10 million) that is significantly disproportionate to what would be expected given the economic damages in the case.
In many cases the defence must battle the plaintiffs counsel “reptile theory” which means the the plaintiffs appeal to the jurors emotions rather than the acts and data.
Here are some staggering facts:
- In the USA the average verdict size for lawsuit above 1 million involving a truck crash has increased nearly 1000% from 2010-2018 rising from 2.3 million to 22.3 million. Remember if your trucking in the USA you play by their rules. If you think your insulated because you only truck in Canada – think again. Many experts are saying the claims are hitting nuclear verdict status here in Canada as well.
- Insurance rates continue to go up forcing carriers to leave the business or scale back on excess insurance putting them at greater risk if a crash happens.
Some in the industry blame corporate mistrust, litigation financing and social pessimism leading to sense that the system is broken for excessive jury awards.
Currently there is to much heavily lifting to defend yourself; very time consuming for lawyers and consultants to review files and put together a solid defence. There are plenty of inefficiencies and it is costly.
Is there an answer?
Technology needs to be embraced to compile data and information quickly. It needs to be timely, affordable and effective. That is where Bluewire comes in. This new technology is going to be game changer and is going to be an important ingredient to them success of trucking company and will be welcomed by the insurance industry. Check www.Bluewire.ia out – they could save you millions.