$200,000,000
$100,000,000
$50,000,000
VERDICT?
COULD YOUR BUSINESS SURVIVE A
Explore the trends driving the rise of nuclear verdicts and discover strategies to help safeguard your business from the risk of large-scale losses.
The average award for a liability verdict in 2022 was $233 million, with the highest award coming in at nearly $7.37 billion – a 144% increase from 2016.*
*The National Law Journal’s “Top 100 Verdicts” 2016 – 2022, full reports
¹The National Law Journal’s “Top 100 Verdicts” 2016 – 2022, full reports
The average award for a liability verdict in 2022 was $233 million, with the highest award coming in at nearly $7.37 billion — a 144% increase from 2016.¹
The average award for a liability verdict in 2022 was $233 million, with the highest award coming in at nearly 7 point 3 7 billion dollars – a 144% increase from 2016.*
A dealership was blamed for a car accident involving a landscaper.*
$46M
A trucker’s employer ignored the trucker’s poor driving record.*
$101M
A drowsy truck driver caused a head-on collision with multiple fatalities.*
$180M
Having the right fleet safety practices and insurance policies in place can help prevent motor vehicle claims. A few examples from recent years include:
When employees or company-owned vehicles are involved in automobile accidents, large-scale losses may follow close behind.
Motor Vehicle
*The National Law Journal’s “Top 100 Verdicts” 2016, 2019 and 2021 full reports
A bicyclist was paralyzed after hitting a pathway post in a golf community.*
$41M
Inadequate grocery store security led to a shooting and paraplegia.*
$69M
A broken AC system was blamed for a tenant’s death.*
$125M
Tailoring safety measures to the unique features of your property can help reduce risk. Consider these premises liability jury awards from recent years:
Ensuring the safety of your company’s visitors, customers and employees is critical to mitigating premises liability risk. Taking the necessary precautions to protect the public in and around property you own and manage is the first step. Carrying the right insurance is essential.
Premises Liability
A worker was burned by a manufacturing plant’s defective spark detection system.*
$33M
A defect in a ceramic heater caused a fatal house fire.*
$35M
A manufacturer was blamed for a seat belt defect that resulted in paraplegia.*
$52M
Take a proactive approach to product safety to help minimize liability exposure. Recent examples of large-scale product liability losses include:
Some products are particularly prone to safety issues, which can occur at any point in their lifecycle – from design to delivery to disposal. When defects lead to damages, maximizing your ability to defend claims and mitigate your overall loss costs is critical.
Product Liability
After being served 24 drinks at a bar, a man hit a pedestrian.*
$30M
A poorly paved road led to a fatal vehicle collision.*
$74M
Firefighters claimed equipment’s elimination led to injuries and death.*
$183M
Maintaining a safe, compliant working environment may help minimize losses. The following verdicts were recently awarded in workplace negligence cases:
Even with proper preventive measures, your business remains vulnerable to unpredictable events that may lead to claims of worker or workplace negligence.
Worker/Workplace Negligence
From your fleet to your front office – even the seemingly smallest incidents and claims involving your company’s vehicles, property, products or people can quickly turn into a massive loss if you’re not prepared with a strategically sound defense.
When employees or company-owned vehicles are involved in automobile accidents, large-scale losses may follow close behind. Having the right fleet safety practices and insurance policies in place can help prevent motor vehicle claims.
From your fleet to your front office — even the seemingly smallest incidents and claims involving your company’s vehicles, property, products or people can quickly turn into a massive loss if you’re not prepared with a strategically sound defense.
FEATURED CASES
Movie Set Accident
$177,000,000
Warehouse Worker Paralyzed
Bar Negligent
$95,527,108
Assault on a Sleeping Guest
$60,445,361
Teen’s Car Crash
$50,004,912
Motorcyclist’s Death
$36,250,000
Hotel Negligent
$66,662,795
+
A man asked a California resort to perform a welfare check on his wife, who was not answering his calls. After calling into the dark room with no response, a maintenance worker reported that the room was empty. The husband arrived the next morning to find his wife unresponsive, suffering a brain aneurysm. The couple filed suit against the hotel, arguing that had the welfare check been completed correctly, the woman would have received medical care in a timelier manner, reducing the severity of her brain injury. The jury found that the resort failed to use reasonable care, was negligent and was a substantial factor in causing harm to its guest.
Hotel Negligent for Guest’s Brain Damage
A hotel guest claimed she was sexually assaulted by a hotel security officer who was sent to complete a welfare check. The victim’s counsel argued that the hotel violated its own policies regarding welfare checks as well as its own hiring policies by failing to verify the man’s employment history and neglecting to follow the required “higher scrutiny” for security officer positions, as the security officer had a prior record of assault charges. The jury found the hotel negligent and awarded the plaintiff $177,000,000.
Hotel Liable for Assault on a Sleeping Guest
A pallet of lighting products was knocked loose from an upper storage rack by a temporary service worker operating a forklift. The products fell on a warehouse worker who suffered multiple injuries and was diagnosed with permanent paraplegia. The injured worker sued the lighting distributor and warehouse alleging they failed to properly train and supervise the temporary worker and secure the boxes on the pallet. The jury determined the warehouse was 90% at fault and the temporary worker was 10% at fault.
Warehouse Worker Paralyzed by Falling Pallet
A brother and sister were struck head-on by a sedan driving in the wrong direction on the highway. The woman was killed, and her brother suffered severe injuries requiring full-time care. The driver’s blood alcohol content was found to be twice the legal limit. He pleaded guilty to several charges, including vehicular homicide, and was sentenced to jail time. The siblings’ father filed suit against the driver and the bar that served him drinks that night. The jury determined that the brother suffered damages totaling $58,527,108 and that his sister’s estate was entitled to damages totaling $37 million, for a total of $95,527,108.
Bar Liable in Deadly Head-On Collision
A movie cameraman was injured on set while driving an all-terrain vehicle camera crane up a mountain. The mobile unit flipped over, crushing the man, who suffered multiple fractures to his neck, pelvis and spine. The man and his wife filed suit, alleging that the defendants negligently failed to provide a safe workplace, failed to designate a safety professional with a safe route and failed to allow the man time to properly scout the route. The jury found the film set’s production company and the parent company liable.
Cameraman Permanently Disabled by Movie Set Accident
A 17-year-old boy was seriously injured after the car he rode in was struck by a tractor-trailer. The accident resulted in a hospital stay for many months to treat a traumatic brain injury and ongoing outpatient medical care. A suit was filed against the driver and the transportation company for the recovery of past and future medical costs, future loss of earnings, and damages for past and future pain and suffering.
Crash Leads to Teen’s Brain Injury
A pickup truck pulling out of a driveway struck a motorcyclist, who died immediately upon impact. The motorcyclist’s parents filed suit, alleging that the pickup truck driver was negligent in the operation of his vehicle and that his employer, the owner of the truck, was vicariously liable. The parents sought recovery of wrongful death damages. The jury found that the driver was negligent and that his negligence was a substantial factor in causing the motorcyclist’s death.
Failure to Yield Leads to Motorcyclist Death
Top 100 Verdicts of 2022
Social inflation refers to the rising cost of liability insurance claims above general economic inflation due to shifting societal attitudes. This includes the current societal trend of more and more juries siding with plaintiffs and awarding outsized verdicts.
¹“The Generation Gap in American Politics.” Pew Research Center, Washington, D.C. (March 1, 2018)
• >3/4 agree that “big business has too much power in American life.”³
Juries today may also include millennials and Gen Zers who may be more likely to hold views on society and corporations that could lead to higher verdicts.
Evolving Jury Demographics and Attitudes
²“Generation Z Looks a Lot Like Millennials on Key Social and Political Issues” Pew Research Center, Washington, D.C. (January 17, 2019)
³https://capitalism.wfu.edu/wp-content/uploads/2022/05/WFU_CSC_Research-Report_Apr22.pdf
²https://www.travelers.com/business-insurance/large/casualty/whats-driving-huge-jury-awards
¹https://www.travelers.com/business-insurance/general-liability/4-factors-causing-social-inflation
• Elimination of monetary caps in some states has increased awards.¹ • Litigation may be filed sooner in the life of a claim.² • New statutes of limitation for some claims may lead to more case filings. • Extreme verdicts are more easily and often affirmed on appeal.²
Recent reversals of judicial reforms that once limited the types of claims and time frames in which claims could be made, as well as how much could be awarded for damages, now tip the scales in favor of plaintiffs.
Erosion of Tort Reform
*https://www.travelers.com/business-insurance/general-liability/4-factors-causing-social-inflation
• Appealing to juror emotions and stoking anger toward corporate defendants.* • Using third-party investors, who get a cut of any awards, to fund cases.*
Plaintiff’s attorneys and savvy investors are capitalizing on shifts in public sentiment. For example, trial lawyers may use increasingly aggressive tactics to redirect juries’ focus from objective assessments of liability to emotional reactions and inflated judgments.
Sophisticated Attorney Tactics and Litigation Funding
Bombarded by high-profile social media posts and news about excessive jury awards, claim settlements, CEO and celebrity salaries, lottery prizes and more, people seem to be numb to the value of money.
Desensitization to Extreme Jury Awards
• Extreme cases, verdicts and settlements usually get more headlines and attention. • Frequent media coverage may normalize the idea of high-dollar awards. • Extreme verdicts could be widely accepted as a way to combat corporate greed. • Companies settling claims above inherent value resets expectations.
• Companies settling claims above inherent value resets expectations.
• Extreme verdicts could be widely accepted as a way to combat corporate greed.
• Frequent media coverage may normalize the idea of high-dollar awards.
• Extreme cases, verdicts and settlements usually get more headlines and attention.
• Using third-party investors, who get a cut of any awards, to fund cases.*
• Appealing to juror emotions and stoking anger toward corporate defendants.*
• Extreme verdicts are more easily and often affirmed on appeal.²
• New statutes of limitation for some claims may lead to more case filings.
• Litigation may be filed sooner in the life of a claim.²
• Elimination of monetary caps in some states has increased awards.¹
• 66% of Gen Zers and 62% of millennials say Black people are treated less fairly than white people.²
• 2/3 say “the system” unfairly favors powerful interests.¹
Footnote two, Pew Research Center
Treat each incident as if it has the potential to severely impact your business and reputation.
Monetary losses are only one way a liability claim can impact your business. Negative news travels quickly across media channels, which can also seriously damage your business. The key is to stay ahead of these risks by having a solid response strategy in place before a claim is made against your company – so you are ready to react quickly.
“Having these resources available at the time that the incident happens helps you respond faster and more completely. Gathering the relevant facts and information at an early stage in the claim process is really key to achieving a desirable outcome.”
Don’t wait until you have a serious claim to assemble your liability catastrophe response team – including in-house or third-party claim, legal, forensics, investigations and risk management experts — and ensure they are adequately trained to fulfill their respective roles on your team.
- David Beauregard, Sr. Forensic Specialist, Travelers
Be on the lookout for deliberate efforts to drive up awards or make unwarranted liability claims against your company.
Plaintiff’s attorneys tactics may include taking broad, bold strokes to inflate claims, such as making emotional appeals, inciting anger against corporations, focusing on “worst-case” scenarios and getting third-party investors to fund litigation. The earlier you sense such tactics, the easier it is to prepare an effective defense against them.
Should the potential for litigation arise, rely on experts and analytics to help shape your legal approach, settle claims or avoid a lawsuit altogether. Building a solid defense plan may help improve your ability to achieve optimal outcomes for your company.
Corporations are entitled to fair and impartial treatment, too. Play an active role in jury selection. Be present during trials and depositions. Find and refute any derogatory comments about your company made online or in the press. Remind the public that your business is made up of people, not products, prizes or profits.
Work to counteract negative public views of big organizations and demonstrate how these broad generalizations do not reflect your company or its values.
Losses associated with large liability cases often add up to more than a business or its primary insurance can cover. Partnering with a carrier that offers flexible coverage solutions, sophisticated claim management and industry-specific litigation expertise is key to minimizing the potentially devastating impact of large claims and verdicts.
Carrying excess casualty coverage with a collaborative insurance provider with specific experience in your industry can make all the difference.
Plaintiff’s attorneys tactics may include taking broad, bold strokes to inflate claims, such as making emotional appeals, inciting anger against corporations, focusing on “worst-case” scenarios and getting third party investors to fund litigation. The earlier you sense such tactics, the easier it is to prepare an effective defense against them.
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