Industries Transport & Logistics

Gross Negligence in Road Traffic – Is Your Comprehensive Motor Insurance Cover Sufficient?

"To err is human" is a well-known saying. To protect themselves against the financial consequences of future mistakes, people take out insurance policies. However, not every loss resulting from an error is covered by insurance.

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In this article, we look at mistakes and oversights that typically occur among professional drivers, or people who spend a great deal of time on the road, and examine the insurance implications of such incidents.

First, it should be noted that the legal systems of European Union countries generally distinguish between two types of negligence: ordinary negligence (a lesser degree of fault) and gross negligence (a serious degree of fault). While the precise definitions vary slightly from country to country, the underlying meaning is largely the same.

A practical definition could be as follows:

Ordinary negligence occurs when a mistake is one that even a careful person could occasionally make. In such cases, the resulting damage is often not easily foreseeable, and an average person exercising reasonable care might make the same error.
Gross negligence occurs when the mistake is so serious that a prudent person in the same situation would clearly not have made it.

In practice, distinguishing between ordinary and gross negligence is often extremely difficult and depends heavily on the specific circumstances of each individual case.

Below are some common examples from international case law that have been classified as gross negligence (without claiming to be exhaustive):

Examples of Gross Negligence

Driving a vehicle under the influence of alcohol.
Significantly exceeding the speed limit.
Running a red traffic light or ignoring a stop sign.
Overtaking in areas with limited visibility, particularly on wet roads.
Searching for a dropped cigarette, water bottle, documents in the glove compartment, etc., while driving.
Causing a driving error after spilling hot coffee while driving.
Running out of fuel and becoming stranded on a motorway.
Operating a navigation device while driving.
A truck colliding with the ceiling of a tunnel because the vehicle exceeds the permitted height.
Adjusting the driver's seat while driving on a motorway.
Parking without engaging a gear and without properly applying the handbrake.
Driving on a snow-covered road with summer tyres.
Falling asleep at the wheel due to fatigue, particularly when knowingly exceeding legally permitted driving hours or ignoring clear signs of exhaustion.

Case law also contains numerous examples arising in private situations, such as driving into an underground garage with bicycles mounted on the roof or transporting a dog in the front passenger footwell. However, this article focuses primarily on risks relevant to freight carriers.

As can be seen, the range of situations already classified as gross negligence is extensive. Especially under time pressure, which is common in road freight transport, drivers may be tempted to carry out one or more of the activities described above in order to save time. You may even have caught yourself doing some of them.

Comprehensive Motor Insurers May Refuse Coverage

Many motor insurance policies contain clauses similar to the following: "If it is determined that the insured vehicle was damaged as a result of gross negligence by the driver, the insurer may refuse indemnification."

The wording may vary from insurer to insurer, but the effect is often the same. Furthermore, policyholders should not be misled by the word "may". In practice, insurers frequently exercise their right to deny coverage in such cases.

For this reason, comprehensive motor insurance conditions should always be reviewed carefully before entering into a contract, unless a specialist motor insurance product specifically designed for freight carriers is chosen, such as those offered by Lutz Assekuranz.

Make Use of Your Insurance Broker's Expertise

Even if you do not have a specialist motor insurance product, it is advisable to seek expert advice in the event of a claim. Insurance brokers specialising in road freight transport, such as Lutz Assekuranz, can provide invaluable assistance when preparing a claim notification, particularly when presenting and explaining the circumstances that led to the loss.

As discussed above, the specific facts of a case are often decisive in determining whether conduct is classified as ordinary negligence or gross negligence.

Example

Suppose a driver drove through a red traffic light only because they were suddenly blinded by the sun and could not reasonably recognise the signal. In such a case, the circumstances would argue much less strongly in favour of a finding of gross negligence.

The same principle may apply when traffic signs (such as stop signs, speed limits, or no-overtaking signs) are overlooked because they were partially or completely obscured by overgrown trees or vegetation.

Choose Professional Motor Insurance Solutions

To avoid disputes with insurers over negligence in the event of a claim, it is advisable to invest in a professional motor insurance product specifically designed for the transport industry.

The motor insurance solution distributed by Lutz Assekuranz was developed specifically for internationally operating freight carriers, providing protection tailored to the needs and risks of the transport sector.

The LUTZ Transport Comprehensive Insurance policy does not exclude coverage for acts or omissions resulting from gross negligence on the part of an employed driver. This applies in particular to losses resulting from a driver's alcohol consumption.

In addition, typical operational damages can be insured, including:

Damage resulting from cargo shift during transport.
Vehicle damage caused by carelessness during loading or unloading operations.

Another significant advantage of this product is that insurance coverage is not dependent on the presence of special security equipment, such as anti-theft devices. This provides transport operators with greater flexibility and avoids potential coverage disputes relating to vehicle equipment.

Particularly valuable in international road freight transport is the inclusion of wreck removal and disposal cost coverage. In many Central and Western European countries, including Germany, the Netherlands, and France, public authorities frequently appoint private recovery companies to remove damaged vehicles and cargo. Given the urgency of such situations, the resulting costs can be substantial. LUTZ customers benefit from the reassurance that these expenses can also be covered under their insurance policy.

The product offers numerous additional advantages that can provide valuable protection for freight carriers operating internationally. The specialists at LUTZ Assekuranz will be pleased to provide further information upon request and to advise you on the most suitable insurance solution for your business.