The facts
ACME Logging won a last minute contract hauling logs to a local mill. Because of the large volume of timber the contract called for, the company had to hire a new driver right away to meet the demand. The owner of ACME Logging hired a new driver recommended to him by a fellow log hauling operation. The new driver was given a full load his first day on the job.
While navigating a sharp bend on the road, the new driver overturned his truck and trailer resulting in minor injuries, significant damage to the vehicle, and the destruction of a neighboring site of forest land. After the accident, a Department of Motor Vehicle report was run on the driver. The report revealed an extensive history of accidents and speeding violations.
The result
The accident caused over $100,000 in damages to the truck and trailer. The land owner, whose forest land was damaged in the accident, sued ACME Logging. Both parties eventually reached a settlement, but not before incurring $50,000 in defense costs.
The remedy
Following the accident, ACME Logging instituted a mandatory Department of Motor Vehicle report screening for all potential new drivers. In addition, a written driver training program was created that required all new drivers complete a probationary period that involved shadowing a more experienced driver.
Risk factors
Risk factor #1
ACME Logging did not have a driver training program in place.
Risk factor #2
ACME Logging did not review the driver’s Department of Motor Vehicle Report prior to his hire.
* The claims scenario is strictly documented for illustrative purposes only and provides an example of what a policy could cover. It is intended to provide a general overview of the program described. Please remember only the insurance policy can give actual terms, coverage, amounts, conditions and exclusions. Program availability and coverage are subject to individual underwriting criteria.