Rising jury verdicts began as a ripple, but today nuclear verdicts shatter through the ceiling of insurance policies, affecting a wide array of industries and consequently, the insurance companies that cover those risks. One of the main culprits contributing to this trend of massive jury awards: Third-party litigation financing (TPLF).
The explosion of high-dollar insurance policy settlements and mushroom cloud-size jury awards — a trend also known as social inflation — have put businesses, insurers and legislators on notice.
Conducting an internal audit and scrutinizing your own claims history and finances will give you data to generate risk scenarios and provide a clear picture of the exposures you’re likely to face. Analytic modeling tools can help quantify the projected loss frequency and severity of those events, providing a window into the future of risk.
Although you can’t control the fallout of an unfavorable verdict, you will be able to find the optimal insurance structure to protect your organization from being a target of unscrupulous legal profiteers.
Hub International Florida, global insurance brokerage, can help you make sure you are covered adequately.
