Are You Using Your Telematics to Reduce Litigation Risk in Trucking?

Nuclear verdicts, or litigation awards over $10M, have become one of the most significant financial threats facing fleets today. The median nuclear verdict in trucking cases has reached $36 million, roughly 50% higher than a decade ago. While not every case results in a nuclear verdict, the potential for large settlements is something fleets and insurers must consider in every accident.  

The explosive escalation of litigation results is increasingly linked to operational data from the trucks involved in the accident and documented risk management practices.

Currently, 93% of U.S. fleets with 50+ vehicles are equipped with telematic systems, of which the majority include camera systems that capture driving events.

With the abundance of information and knowledge comes greater accountability. If fleet owners have access to data demonstrating repeated unsafe behaviors — such as frequent speeding or hard braking — and don’t take action, it can be difficult to defend in legal cases.

Telematics data: Utilizing what you’ve got 

Telematics can drown you in data, yet leave you thirsting for meaning and purpose. That meaning and purpose is yielded when telematics is part of a structured, intentional safety program –– well beyond a simple “tracking and watching” monitoring tool. Fleets that use this wealth of data proactively are top performers in all aspects: lower risk, higher driver safety performance and higher profitability.  

Several key industry recognized foundations of telematic effectiveness include:

• Build an integrated telematics strategy. Telematics should be integrated into a broad safety, compliance and operational framework. Understanding the system capabilities, available data and how to manage that data are key elements that can truly transform all operational aspects –– not just safety and compliance, but operations across the entire organization. Understanding what data the platform can generate and defining how that information will be used across the organization is the first step. Many fleets only use a fraction of their telematics platform's data and capabilities, so knowing what you have is essential before integration.
  • One starting point is using driver scorecards and performance benchmarks to provide a clear framework for measuring a driver’s total effectiveness. Defining clear performance expectations across all driver duties gives drivers consistent direction on both positive performance and areas for improvement. 
• Use driver data for recognition, coaching and training. Pairing telematic results with driver coaching must include both recognition of positive actions and guidance on refining driving skills. Coaching that only reflects corrections and ignores the vast positive performance events degrades the vital relationships with drivers. If key performance items are identified as previously suggested, coaching will be viewed as a positive interaction –– one where drivers understand the reasoning behind any corrective measures. A monetary recognition program is a natural complement to coaching with data.
• Use reports to identify patterns and exposure. Telematics platforms that provide trend analysis across both drivers and fleet operations are an invaluable tool for proactive risk management. The ability to narrowly identify patterns across operations goes beyond a simple speeding issue, pinpointing, for example, that drivers are more likely to speed on outbound runs when dispatched late or on inbound runs on Friday afternoons, even if hours are available. Such identified trends are a key aspect of proactive management from telematic data.

Yes, it certainly is a lot and seemingly overwhelming. The reality is that the data may drown you. However, in today’s world of technology we have all been thrown in the deep end. Time to learn to swim.

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