A transportation company based in Illinois is being sued for $5.3 million following a devastating accident in which one of its freight trucks reportedly rear-ended a party bus, resulting in the tragic loss of three passengers and injuries to 20 others. In the lawsuit, Triton Logistics, its owner, the driver, and several related companies are accused of negligence and acting with “willful, wanton and reckless indifference” to others’ safety in the 2022 incident.
Featured Solutions
“It is always tragic when you have fatalities, especially the three young individuals in this incident,” said Gene’ Cain, Broker, Transportation, Burns & Wilcox Brokerage, Atlanta, Georgia. “Safety is a top concern with trucking companies.”
It is always tragic when you have fatalities, especially the three young individuals in this incident. Safety is a top concern for trucking companies.
After this type of accident, it would not be uncommon for both the trucking company and the party bus operator to face lawsuits, potentially triggering coverage under their respective Transportation Insurance policies including Auto Liability Insurance and Excess Liability Insurance. Without adequate insurance, a loss of this severity could easily put a company out of business.
“An incident like this can be very damaging to everyone involved,” said Fernando Batista, Manager, Transportation, Burns & Wilcox, Toronto, Ontario. “If the trucking company is found to be negligent in court, the effects will likely be disastrous for all parties involved.”
‘Nuclear verdicts’ possible after fatalities, injuries
Late last year, another crash involving a tractor-trailer and a charter bus left six individuals dead, and 18 others injured. The crash occurred in Ohio and involved a charter bus that was carrying high school students, USA Today reported. In September, a two-vehicle crash in Maryland between a charter bus carrying senior citizens and a dump truck left three individuals dead, 7News reported.
“Anytime you have loss of life or injuries, it is a lose-lose situation,” Batista said. “When there is a loss involving fatalities or injuries, we need to keep in mind that people’s lives would have been impacted permanently. Was it because the trucking company was negligent, was it accidental, or was it wrong place, wrong time?”
When there is a loss involving fatalities or injuries, we need to keep in mind that people’s lives would have been impacted permanently. Was it because the trucking company was negligent, was it accidental, or was it wrong place, wrong time?
In any case, all companies involved in these situations can expect to face litigation and pay out damages — in some cases, regardless of fault,” Cain said. “Even if it was potentially not their fault, having a loss can affect them financially,” she said.
Batista agreed, noting that a company found to be even 2% negligent in an accident could be paying for the entire loss.
Trucking companies and charter bus companies need to carry Auto Liability Insurance, which can help pay for expenses related to third-party bodily injuries and property damage, legal defense, settlements and more. The policy can also cover repairing damage to the road or guardrails, fuel leakage cleanup, and other accident-related costs, Cain said.
Do not rely on the traditional limits. Make sure you are carrying Auto Liability Insurance limits for the exposure that you have.
In September, a jury in St. Louis awarded a $462 million verdict to the families of two men killed in a 2019 “underride accident,” WUSA 9 reported. In 2019, the family of a 16-year-old killed in another underride accident was awarded $42 million from the trucking company; the lawsuit accused the company of negligence for not having a side underride guard, according to WUSA.
These exceptionally large jury awards, known as “nuclear verdicts,” are an ongoing concern in the U.S. transportation industry, Cain said. Although they are less common in Canada, it is still important to ensure you have “adequate limits for your exposure,” Batista said, pointing to the importance of Excess Liability Insurance. “Do not rely on the traditional limits. Make sure you are carrying Auto Liability Insurance limits for the exposure that you have,” he said.
Party bus operations come with significant risks
In May, one woman died, and multiple other passengers were hurt when a party bus crashed into a guardrail in Baltimore, CBS News reported. In September, a man in Iowa was seriously injured when he fell out of a moving party bus, according to KCCI Des Moines; the man reportedly fell after leaning against a window that was unlatched.
When it comes to Auto Liability Insurance for party buses, these operations are generally “just a tricky class of business to underwrite,” Batista explained. “There is a lot of exposure. You are looking at something that is extremely hazardous,” he said, pointing to party buses with standing room only and the risk of hard-breaking events. “Anytime you are carrying mass passengers anywhere, your liability exposure does go up.”
Individuals on party buses may be partying and drinking, it could be loud, and there are a lot of things that could distract the driver. There is just an inherent risk because of what they do, which is why they are required to have higher limits.
Party bus companies often need to carry higher limits on their Auto Liability Insurance, Cain said; for example, while a trucking company may only be required to have $1 million limits, a party bus could need to carry a $5 million limit.
“Individuals on party buses may be partying and drinking, it could be loud, and there are a lot of things that could distract the driver,” Cain said. “There is just an inherent risk because of what they do, which is why they are required to have higher limits.”
In some cases, passenger injuries or property damage that occur while the bus is not moving could be covered by the company’s Commercial General Liability (CGL) Insurance, Batista said.
Navigating insurance, risk management for high-risk operations
From trucking companies to charter bus businesses, owners of any transportation company should know that purchasing Auto Liability Insurance and Excess Liability Insurance is only one part of a risk management plan. Vehicle maintenance, driver training programs, and strict safety protocols are among other necessary steps, Batista said.
“They should have robust risk management procedures in place that focus on the reduction of injury to passengers,” he said.
Drivers should also be “very well-vetted, well-trained, experienced, and well-managed,” Cain said, adding that dash cameras can be helpful for any type of transportation company. “That can really help when you have a claim,” she said. “If you were at fault, you have that footage and you can settle the claim. If not, you have proof that it was not your fault.”
