19Insurance Business ReviewNOVEMBER 2023In today's climate of corporate distrust and stricter expectations of corporate safety standards, companies must have the resources to understand and evaluate the risks, and ensure proper loss control and communicationsseemingly unsafe manner. Jurors are asked to send a message to the industry that unsafe practices will not be tolerated.Distrust of corporations and stirring up the emotions of jurors, asking them to question, `What if this were me?' adds to the reptilian brain's basic need to feel safe. The message appeals to the jurors, fight or flight: "Do we keep our loved ones off the roads? Or do we send a message to this company and the industry that safety must come first?" These plaintiff's attorneys argue that we are not safe unless the message is heard loud and clear by hitting defendants with a large enough dollar amount to make an impact.The focus on reducing the risk of nuclear verdicts starts with managing casualty risks through prevention. First and foremost, companies must be excellent corporate citizens to ensure they are not playing into the reptile theory by having a poor safety culture and lack of consistent compliance. Safety Consultants, in-house or through top-notch insurance agencies, can advise on best practices. Businesses need to focus on the following:· Preventive fleet and equipment maintenance, for owned and leased, with pre-trip/pre-use checklists.· Stringent onboard vetting of drivers and personnel, thorough background checks, etc. Avoid Vicarious Liability and Negligent Entrustment by never entrusting vehicles, equipment, or premises with unqualified workers.· Always train and re-train and thoroughly document the same. For example, with drivers, make sure they meet or exceed CDL requirements.· Have thorough written fleet/driver safety policies, train and ensure compliance with, for example, defensive driving, cell phone policy, distracted driving, fatigue management, drug and alcohol education, etc.· Ensure compliance with fleet safety and safe drivers' policies. For example, have vehicle dashboard cameras to ensure compliance, including cell phone use, and then write up and re-train those not compliant. Dashboard cameras are also a great tool to help with accident reconstruction.· Have thorough premise and job site security and related safety manuals and checklists for consistent and regular compliance assessments.Another critical focus on reducing the threat of nuclear verdicts is aggressively managing claims. Companies and their risk partners must maintain a close eye on the adjuster and assigned defense counsel so that all facts and defendable grounds and strategies are considered in defending the business, its policies and procedures, and the actions or inactions of employees in the course of their employment.Businesses must identify, assess, and strategize to produce the best possible outcomes for overall claims management and in individual complex claims situations. As losses occur, companies must advocate and partner with their broker claims' experts or other vendors throughout the life of a claim to ensure oversight as to claim mitigation to aid in reducing the likelihood of facing a large jury verdict, including:· Managing claims issues promptly, ensuring carrier commitments are honored, and coverage disputes are resolved in the company's favor whenever possible.· Working to develop strategic action plans to reach desired outcomes and focus on potential large settlements.· Finding suitable vendor partners, such as TPAs, nurse triage, and defense counsel.· Evaluating claim reserves and pushing for reductions where appropriate.· Have a broker or outside vendor provide guidance and trainings to ensure the company's essential role in managing claims to resolution.In today's climate of corporate distrust and stricter expectations of corporate safety standards, companies must have the resources to understand and evaluate the risks, ensure proper loss control and communications are in place, advocate, and have oversight in the claims process to mitigate the likelihood of large verdicts impacting insurance rates and the financial health of businesses. Companies need a robust network of resources designed to serve an organization's specific needs, focusing on risk management solutions with an insider's appreciation of the difficulties facing a company in particular while standing in the front lines to help shield them from nuclear and even thermonuclear threats.
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