In the multidimensional landscape of commercial auto insurance, one phrase has garnered increasing attention and concern: "nuclear verdicts." These massive legal settlements and judgments are reshaping the industry and posing significant challenges to insurers, businesses and individuals.
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The Nuclear Verdict Phenomenon
Nuclear verdicts, sometimes referred to as runaway verdicts, are legal outcomes in which juries award exceptionally large sums of money to plaintiffs, often exceeding $10 million.
The U.S. Chamber of Commerce’s Institute for Legal Reform highlights the dramatic rise in the average size of verdicts from 2010 to 2018. The increase in these verdicts reflects aggressive plaintiff tactics involving psychological techniques to create a “guardian” mentality on the part of jurors. This approach positions jurors as protectors, as a last resort. In this way, they are instructed to decide awards not just on the specific court case but also to safeguard society.
For companies using commercial vehicles, these nuclear verdicts are a threat to their existence. Rarely will insurance limits cover the size of these verdicts. The possibility of a large award, even if it is eventually overturned or substantially reduced, heightens the hazards of litigation. Defense costs alone can exceed a company’s insurance liability limits.
The Road Ahead
The commercial auto insurance industry is no stranger to change, but the emergence of nuclear verdicts presents a unique set of challenges. It is paramount that insurers and businesses equip themselves with the knowledge and strategies needed to navigate this evolving landscape effectively.
To shed light on this critical issue and provide tangible solutions, we are thrilled to introduce our latest white paper, From Crisis to Control: Protecting the Commercial Auto Insurance Ecosystem.
Our white paper is a comprehensive resource designed to provide you with the insights and information necessary to understand and address the nuclear verdict phenomenon. Stay on the cutting edge of this issue so that you can make well-informed decisions that protect your organization and clients from the unexpected financial and operational impacts of nuclear verdicts. Whether you are a seasoned professional or new to the industry, the information within our white paper will help you navigate the challenges presented by nuclear verdicts.
Thank you for your commitment to staying informed and prepared for the future of commercial auto insurance. Visit the link below to dive into this free white paper!
