Progressive Sues to Avoid Paying Trucking Crash Claim Over Unlisted Truck

by TRUCKERS VA
(UNITED STATES)

Wrong Truck. Wrong Driver. Wrong Carrier. Could the Insurance Policy Mean No Coverage?

For trucking companies, there are some details you really don't want to get wrong.

The truck.

The driver.

The insurance paperwork.

A new federal lawsuit involving Progressive puts all three under the microscope—and it could serve as a serious reminder to trucking companies about why keeping insurance information accurate matters.

Progressive Express Insurance Company has asked a federal court in Houston to declare that it owes nothing on a claim stemming from a 2023 crash in Harris County, Texas.

The insurer's argument?

The truck involved wasn't listed on the policy. The driver wasn't listed either. And Progressive says the trucking company involved wasn't actually the motor carrier operating the equipment at the time.

That's quite a paperwork problem.

The Crash Started It All

According to Progressive's lawsuit, the incident happened on the morning of September 15, 2023, on US 290 in Harris County.

A tractor-trailer allegedly swerved to avoid a crash ahead and struck a concrete barrier.

A motorist traveling in the opposite direction later said she was injured when another vehicle moved to avoid debris, resulting in contact between the vehicles.

The motorist subsequently sued trucking company MMT Carriers and the driver, alleging negligence.

That's where the insurance fight began.

And things got interesting very quickly.

The Truck on the Road Wasn't the Truck on the Policy

Progressive says MMT's commercial auto policy was active from May 2023 through May 2024.

The policy listed one power unit: a 2012 Freightliner Cascadia.

But according to the complaint, the tractor involved in the crash was a 2005 Volvo 780 pulling a 2015 utility trailer.

Neither was listed on the policy.

Progressive says it was never notified about the possible existence, acquisition or operation of either vehicle.

For a trucking company, that's the kind of sentence that makes your insurance agent's phone number suddenly look very important.

Then There's the Driver

The truck wasn't the only problem Progressive identified.

The insurer says the driver involved in the crash wasn't one of the three rated drivers listed on the policy.

According to the complaint, Progressive was never notified about the driver either.

If the driver was working for MMT, Progressive argues that MMT was required to report the driver—and failed to do so.

The insurer calls that a breach of a condition it says must be satisfied before coverage applies.

In other words:

Wrong truck. Wrong driver. Now we're talking about whether the insurance policy applies at all.

What About the MCS-90?

Here's where things get even more interesting for trucking professionals.

The case also involves an MCS-90 endorsement, a federal filing associated with motor carrier financial responsibility.

Progressive argues the MCS-90 doesn't apply because, according to the complaint, a non-party owned and operated the tractor-trailer at the time of the incident.

The insurer says MMT was not the motor carrier involved in the crash.

That's a major issue because the MCS-90 can become particularly important when questions arise about a motor carrier's ability to satisfy public-liability judgments.

And Progressive Wants Out of Punitive Damages Too

There's another piece to the lawsuit.

The injured motorist is seeking punitive damages, and Progressive is asking the court to confirm that its policy doesn't provide coverage for those damages under any circumstances.

So Progressive isn't simply asking the court to decide whether it has to write a check.

It's asking for a declaration that it has no duty to defend or indemnify the parties in the underlying case.

If the court agrees with Progressive, the insurer could avoid both defense costs and any judgment covered by the underlying dispute.

Here's the Part Trucking Companies Should Pay Attention To

This isn't just an insurance-company-versus-trucking-company story.

There's a bigger lesson here.

Your insurance policy needs to match your actual operation.

If you add a truck, tell your insurer.

If you replace a truck, tell your insurer.

If drivers change, make sure they're properly reported.

If ownership or operating arrangements change, don't assume the old paperwork automatically follows the new arrangement.

And don't assume that because you've paid your premium, every vehicle and every driver connected to your operation is automatically covered.

Insurance policies can have very specific definitions and conditions.

Sometimes the smallest detail on a declarations page can become a very big deal after a crash.

The Expensive Lesson: Don't Let Paperwork Drive Your Business Into a Ditch

Truckers spend plenty of time thinking about tires, brakes, fuel, maintenance and hours.

Insurance paperwork isn't nearly as exciting.

Nobody pulls into a truck stop saying:

“Man, I can't wait to review my declarations page.”

But maybe they should.

Because after a serious accident, the question isn't simply:

“Did we have insurance?”

It can become:

“Did we have the right insurance for this truck, this driver and this operation?”

Those are two very different questions.

Bottom Line for Truckers

Progressive's lawsuit is still just that—a lawsuit.

The allegations in the complaint have not been tested in court, and no court has ruled on whether Progressive ultimately has a duty to defend or indemnify the parties.

But the case offers a useful reminder for trucking companies and owner-operators:

Don't let your insurance paperwork become an afterthought.

Check the vehicles listed on your policy.

Check your drivers.

Check your operating arrangements.

And if something changes, ask your insurance professional what needs to be updated.

Because when you're hauling 80,000 pounds down the highway, the last thing you want is to discover after a crash that your insurance paperwork weighs more than the truck.

What Do You Think?

Should trucking companies be required to verify their listed trucks and drivers more frequently?

Or is keeping that information updated simply part of running the business?

Tell us what you think.

Stay Connected With the Trucking Community

For more trucking news, stories and information built around the people who live the trucking life, visit LifeAsATrucker.com.

This article summarizes allegations contained in a federal complaint. The claims have not been proven in court, and this article is not legal or insurance advice.