Are you are tired of hearing all the excuses about how the weather incidents and wild fires are making your insurance rates go up? Listen up, because there is a new trend to be aware of, NUCLEAR VERDICTS.

Nuclear verdicts are EXTREMELY HIGH jury awards that are significantly impacting insurance rates, particularly in sectors like auto, healthcare, and business liability. These verdicts, often in the tens of millions, result from catastrophic accidents or misconduct claims, driving insurers to reassess risk. As a result, insurers are raising premiums or scaling back coverage to offset the unpredictable costs associated with such large awards. Businesses face a dilemma where they can absorb the rising costs or pass them onto consumers. In the long term, nuclear verdicts are reshaping the insurance landscape, making it increasingly difficult for companies to secure affordable coverage while maintaining financial stability.

In 2024, several notable nuclear verdicts have highlighted the growing trend. One example is a $120 million award in a trucking accident case, where the jury found the company grossly negligent. In another case, a Florida healthcare provider was hit with a $80 million verdict after a medical malpractice claim involving a botched surgery. These cases not only underscore the financial strain on businesses but also reflect how juries are becoming more willing to award large sums, even in cases where fault may be debated. These verdicts are pushing insurers to adapt by raising rates or limiting coverage options for policyholders.

AND- To make things even worse, we have private equity investing big money in these over zealous law firms who are filing lawsuits against insurance companies or in companies that facilitate those suits.  This is becoming a standard investment type. Private equity companies invest in oil leases, farmland, manufacturing operations and... lawsuits against insurers. So more lawsuits will be filed. Plaintiffs will be able to sustain them longer. Demands will be higher, and so will settlements.