Here is another case that the evidence was presented that lack of driver training and too many violations through the CSA SMS BASIC portal lead to a $58 million+ verdict. They also sighted driver fatigue.
What happens is the insurance carrier pays their policy limits, plus their cost to defend the lawsuit.
Any excess verdict amounts are the responsibility of the motor carrier.
For example, a jury awards $5,000,000. The insurance carrier would pay $750,000 of the verdict and the motor carrier would owe $4,250,000. Obviously, an amount that could put the motor carrier out-of-business.
The other costs associated to large verdicts are either higher insurance premiums or an account being uninsurable.
Motor carriers need to take the possibility of large verdicts seriously.
Motor carriers should also have discussions with their insurance agents about increasing policy limits and excess liability coverage.