While driving on I-70 in Fayette County, Illinois, Benjamin Ray, driving a pickup truck owned by pipeline contractor Foltz Welding Ltd., rear-ended a tractor-trailer driven by Jeremy Dutton. (Mills, 2024) Dutton claimed that he experienced a severe spinal injury as a result. (ibid) Dutton stated that the accident caused him headaches, neck and lower back pain, that he underwent multiple surgeries to correct these problems, and that he can no longer work regularly. (ibid)

Dutton sued Foltz Welding, claiming that the company was vicariously liable for Ray’s negligence. (ibid) Foltz Welding attorneys admitted that Ray was negligent, contesting the cause and severity of Dutton’s injuries. (ibid) 

In April 2024, a Fayette County, Illinois jury awarded $12.2 million to plaintiff Dutton. (ibid) The jury’s award included medical expenses, pain and suffering, emotional distress, and lost earnings. (ibid) 

Nuclear verdicts, where awards exceed $10 million, are becoming increasingly common, and not just in cases like this one involving employee actions and commercial motor vehicle accidents.  Construction accidents, customer injuries, medical malpractice, product liability, and professional liability suits have all resulted in nuclear verdicts, to name a few.

Nuclear verdicts may harm a company’s finances and prospects, as well as damage its reputation.  Coverage limits may or may not be sufficient to cover nuclear verdict awards. Excess liability and commercial umbrella coverages, when available, can help increase coverage limits, ensuring that the insured has no surprise retentions caused by unexpected verdicts that exceed the limits. They can also support the insured by providing limits sufficient to satisfy a contract’s requirements, for example.  Umbrella products may also extend the breadth of coverage beyond what the underlying coverage offers.

Excess liability coverage can differ from carrier to carrier.  The same is true of umbrella coverage.  One way to help sort through the differences you may see is by enrolling in the Risk & Insurance Education Alliance’s course, Excess Liability/Commercial Umbrella Coverages.  This course can help you build or refresh your knowledge of these coverages, their typical exclusions, and other relevant information.  Now available in a convenient self-paced format, this advanced three-hour course also qualifies for continuing education (CE) credit in several states.