Brandon Putnam
Vice President, Business Insurance
For businesses with employees on the road—from construction and service firms to trucking operations—a single accident may lead to a series of financial and legal consequences.
Today’s auto liability environment is challenging. Rising repair costs, social inflation, and litigation trends mean even minor collisions might result in high-severity claims or large verdicts that affect an organization’s risk profile for years.
In these cases, carriers, plaintiff attorneys, and juries often ask similar questions after a serious loss: How were drivers selected, trained, and supervised? What proof shows the company took reasonable steps to manage risk?
A strong driver safety manual can help tell that story. A tailored manual may support your financial footing, serve as a guide for drivers, signal control to carriers, and be an important tool in your defense if litigation occurs.
Why auto liability is becoming harder (and costlier) to manage
Auto liability isn’t becoming more expensive by accident. Broader legal and societal forces are changing how claims unfold and increasing the risks for companies with drivers.
Large verdicts: Increased expectations around accountability have pushed jury awards in auto-related cases higher. What once might have been absorbed within policy limits now has the potential to escalate into multimillion-dollar outcomes with long-term financial implications, especially when documentation or oversight is unclear.
Social inflation: Public sentiment about corporate responsibility now influences case outcomes. When juries believe safety expectations weren’t met, awards may be larger and more variable. Companies without defensible procedures may face increased exposure because their intent is harder to prove.
Third-party litigation funding: The legal landscape is also changing due to outside capital. Investors increasingly fund lawsuits in exchange for a share of the payout, allowing plaintiff teams to pursue longer, more aggressive cases.
According to Research Nester, litigation funding is expected to exceed $67 billion annually by 2037.
Combined with rising repair costs driven by advanced vehicle technology and ongoing parts shortages, these factors create a complex liability environment with potentially significant financial consequences.
How driver safety manuals can help protect your bottom line
A structured driver safety manual helps create clarity, consistency, and defensibility—three essentials in an auto liability environment where gaps can increase risk and cost.
Strengthen legal defense.
Clear policies on driver qualification, motor vehicle record (MVR) reviews, distracted-driving rules, accident procedures, and technology use establish a documented standard of care. If an accident occurs, this record can help show that the company exercised reasonable oversight—an important factor in today’s environment of large verdicts and active litigation.
Improve driver oversight and accountability.
Defined expectations give supervisors and frontline managers a consistent framework for coaching, discipline, and recognition. Whether you use MVRs, telematics, cameras, or route protocols, a written manual helps ensure these tools operate within a structured process, reducing unsafe behavior and improving daily risk control.
Enhance insurability and stabilize costs.
Carriers are paying closer attention to how fleets manage safety. A well-designed manual signals control, reduces uncertainty, and may expand your placement options in a tightening market. For companies facing rising premiums and limited capacity, documented policies and consistent enforcement often lead to more favorable terms and better cost stability.
Driver safety manuals that protect you vs. those that expose you
Many fleets assume a general safety manual covers their auto exposures, but insurers and attorneys expect detailed, enforceable procedures that reflect real operations—a difference that separates strong manuals from those that increase avoidable risk.
MVR screening and ongoing reviews: Effective manuals outline pre-hire MVR screening and set expectations for annual internal reviews. Without this, a driver might go years without a record check, leaving DUIs or violations unnoticed until a claim exposes oversight.
Telematics and camera protocols: More fleets are investing in GPS tracking, dash cameras, and AI-enabled alerts, but few explain how data is reviewed or escalated.
Equipment check procedures: Robust manuals spell out step-by-step pre-trip inspections, reducing “should have been caught” allegations. Weak manuals leave checks vague or optional, widening liability if mechanical issues contribute to a loss.
Accident response instructions: Steps for collisions, such as contact information, photo documentation, and police involvement, are critical. Manuals that bury this guidance or omit it can lead to responses that raise questions about credibility later.
Onboarding that reinforces what’s written: A manual becomes more effective when onboarding reinforces its expectations through walkthroughs and hands-on practice. Without this connection, drivers may learn through inconsistent field habits.
Your operations aren’t generic—your driver manual can’t be either
Auto liability pressures continue to rise, and no two fleets face the same exposures. Whether you already have a manual or need to build one from scratch, a tailored program can help improve carrier confidence, support premium stability, and reduce the risk of costly litigation.
Connect with a Marsh McLennan Agency Arizona representative to assess your current approach, address critical gaps, and create a defensible safety framework that supports both your drivers and your bottom line.
