The Rise of Nuclear Verdicts & Your Insurance Renewals: What You Need to Know

I'm Trevor Elliott and I am a commercial insurance broker in the Pacific Northwest. I’ve been in the industry for 13 years and insurance is not something that I am passionate about BUT what I passionate about helping business owners and organizations navigate the complexity of the commercial insurance industry.

I work with clients in various industries but want to discuss the impact that the rise in nuclear verdicts is having on the commercial insurance market for business owners or organizational boards and ways to protect your business or organization.

What is Happening…

One of the biggest factors behind these rising costs on general liability for business owners or organizations has been the large increase of nuclear verdicts that have been taking place—jury awards that exceed $10 million. These verdicts have doubled since 2020, with the median reaching $44 million in 2023, according to Insurance Business.

As nuclear verdicts become more common, insurance companies are increasingly challenged with managing reserves, determining adequate coverage limits offered for specific classes and addressing the financial impacts of possible significant claims. At the same time, business owners and organizational boards must contend with rising premiums, increased deductibles and the potential for out-of-pocket expenses that exceed policy limits.

Why Are These Verdicts Happening?

• A growing trend of litigation aimed at corporations, particularly in industries like trucking, construction, and healthcare.
• Social inflation—juries awarding increasingly higher sums driven by shifting societal attitudes.
• Aggressive plaintiff tactics, including the use of Reptile Theory to influence jury emotions.

How This Impacts Your Insurance Renewal

• Higher settlements mean higher loss costs for insurers, leading to increased premiums.
• Some insurers are pulling out of certain markets or reducing capacity, limiting coverage options.
• Stricter underwriting—more scrutiny on safety practices, legal history, and risk management programs.

Expert Insights Brian Pierce, Chief Underwriting Officer at Victor US, emphasizes the role of the plaintiffs’ bar and shifting jury expectations:

"One is the plaintiff's bar being extremely well coordinated in the industry and positioning awards based on what they've seen in other jurisdictions throughout the country. We've also seen a real shift in people's expectations of what type of awards are reasonable, and that's caused an escalation."

What Can You Do?

• Risk mitigation is key—proactive safety measures and compliance can help reduce exposure.
• Claims management matters—early intervention and strong legal defense strategies can help avoid excessive payouts.
• Work with a broker who understands these legal trends and can advocate for competitive terms in your renewal.

As nuclear verdicts continue to shape the insurance landscape, staying informed and proactive can help mitigate the risks. How are you preparing for your next renewal? Discussing coverages and strategies tailored to your industry needs must be discussed with your broker or someone that can help provide the guidance that you need prior to a loss not after.

Thanks for reading this edition of The Broker’s Edge on Insurance!

I’m Trevor Elliott, a Commercial Insurance Broker with over a decade of experience helping business owners protect their operations. My goal is to provide actionable insights and strategies to help you navigate the insurance landscape with confidence.

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