Private fleets that operate their own equipment and drivers on the road have significant liability and safety risks. Ruan recognizes the rising threats of nuclear verdicts within the trucking industry. Our team includes legal experts specializing in trucking litigation, and we take a proactive approach to compliance with state and federal regulations. Through strict on-road safety protocols and comprehensive training, we provide the tools needed to reduce risk and liability exposure. Our Dedicated Operations Safety Leader, Joe Kizaur, and our Vice President and General Counsel, Steve Schaal, provided their insight on these topics.
How does Ruan’s focus on safety lower our risk?
Any time a commercial motor vehicle is on the road, there are risks of loss that could impact the motor carrier. We focus on working to eliminate this risk through both training and proper instructions before the driver gets in the seat, as well as monitoring the performance of the driver while operating the truck.
Can you talk about the auto-liability landscape and how this affects fleets?
As we continue to monitor the results from the industry’s commercial motor vehicle accidents, not only has the risk of loss increased when a truck is involved in an accident, but the size of the potential verdict or settlement has also risen dramatically. These losses are not being absorbed by a company’s auto liability insurer because they have translated into higher deductibles, quota shares and of course higher premiums, all of which are paid by the motor carrier. This is especially concerning for shippers that also operate as motor carriers. Today’s plaintiff’s attorneys are well-versed in maximizing theories to recover the largest amounts for their clients. They will work with friendly doctors, financiers, and other lawyers to gain the best possible advantage in the courtroom. At times, they will be able to gather and know as much information about a shipper’s transportation processes as the shipper. All of this means that if a shipper with a private fleet does not keep up to speed on the most current safety processes and ways in which plaintiff’s attorneys approach accidents, they can find themselves risking significantly more than just an insurance deductible.
How can partnering with Ruan help organizations with private fleets avoid compliance issues, penalties, and reputational damage?
Just like the rapid advancement of theories of recovery, state and federal laws continue to evolve and change the landscape of operating a motor carrier. Recent efforts by states to enforce environmental initiatives, creative wage and hour regulations, and privacy statutes are examples of how a shipper can find themselves in regulatory trouble without knowing it. Again, continuous monitoring of all states in which the shipper moves products is essential to avoid regulatory issues. Ruan operates nationwide and has the pulse of new and potentially difficult governmental actions that could impact the transportation industry.
How can partnering with Ruan help mitigate risk for businesses with private fleets as it relates to nuclear verdicts?
Unfortunately, no one can predict a nuclear verdict. It is a product of bad facts and bad juries. However, the risk of a devastating result can be reduced by a continuous devotion to safety, technology, training, solid management, and compliance with all laws. Once the accident occurs, it is too late to fix problems with compliance and those problems will be exploited by talented plaintiff’s attorneys. Ultimately, the best response to handling this risk is to eliminate it, and the only way to eliminate the risk is to outsource the risk to a company like Ruan that will continue to evolve with the litigation and regulatory environment.
When it comes to safety, what are some ways both private fleets and for-hire carriers get complacent?
Complacency isn’t something that happens overnight - it builds over time. It usually starts with something small, like taking a shortcut or not following a process completely. When successful in taking these shortcuts, it’s easy to repeat that same action, or accept skipping steps in other processes. The same applies when you get comfortable in doing things the way they’ve always been done – if things are working, why change? When it comes to safety, this can manifest itself in many ways. It might be something small, like a driver getting comfortable with a particular stop on their route and not feeling like it’s necessary to get out and look before backing into the dock. Taking that shortcut might not have any negative consequences the first 99 times. But what about the 100th time, when that dumpster that’s “always been over there” happens to be six feet closer to the dock than it was last time, and as the driver swings the tractor around to straighten up as they back to the dock, the front bumper hits that dumpster? Maybe it’s overlooking that past accident on an application during the hiring process because the applicant seems like a great person and you really need to fill that empty seat to keep the freight moving. Everything was going great until that driver was involved in a crash. Now, your hiring practices and adherence to your driver qualifications come into question with potentially major implications. It could even be something like failing to stay up to date on the newest regulations and enforcement trends. An issue that was previously a citation has now become an out[1]of-service violation, and you’ve got a driver stuck at a scale house 1000 miles from home with a load that can’t be moved until that issue is fully remedied. Plus, that record is now visible on your company’s CSA scores for the next two years, which can have business implications down the road. These are just a few examples, but it’s easy to see how quickly complacency can creep into the daily operations of any fleet.
What are the best practices to ensure fleets remain compliant?
It all starts with having strong, consistent processes to review fleet safety data, trends, and regulations. At Ruan, we have a dedicated team of safety and compliance professionals with decades of collective trucking industry experience. These team members are constantly looking at our data and key performance indicators to identify areas for improvement. They’re working side-by-side with our drivers, technicians, and operations leadership to evaluate processes, identify better, safer ways to operate, and provide training. We conduct audits, on-site safety events, and ride-alongs to ensure our teams are following their training and fulfilling the commitments we make to ourselves and our customers.
What resources help your team keep up to date with changing regulations?
Continuing education and industry involvement are two critical ways that our team stays up to date. Members of the safety and compliance teams sharpen their skills and further their expertise through various national and state industry associations. Trainings and educational sessions provided by organizations like the American Trucking Associations, Iowa Motor Truck Association, and others allow our team members to stay abreast of the latest legislative and regulatory changes. They also allow our team members to learn new skills, sharpen their expertise, and find new tools that our fleet can use to operate at the highest level. We also have strong relationships with our technology partners, equipment manufacturers, and other transportation professionals, as we all share a common goal to get our team members and the motoring public home safely.
What are some of the highlights of our safety program/training that drivers and team members go through that keep the roadways the safest and keep our risk low?
Ruan’s Safety Focus Guiding Principle and our Megasafe Safety Program provide our team members with the training, tools, and resources needed to do their best work. We also employ many safety features and technologies on our equipment, designed to support our drivers and keep them safe. At the end of the day, though, our people truly make the biggest difference. Our drivers, technicians, and warehouse team members all work together to bring our safety culture to life each day, while we also strive for continuous improvement, never resting on our past accomplishments.