The Gavel Keeps Falling And General Liability Is In The Crosshairs

The general liability market has changed beyond recognition since the start of the COVID-19 pandemic.

Ever-increasing economic and social inflation, medical expenses and litigation financing have all resulted in spiraling claim losses and legal costs, which continue to outstrip rates.

Added to that, sexual harassment cases are on the rise, and decades-old general liability policies have been exposed as many states have removed limitations on financial recovery and victims have been given more time to file or proceed with claims.

The emergence of new potential risks such as cannabis, herbicide and pesticide use over multiple decades, nutraceuticals, PFAS or ‘forever chemicals,’ contaminated drinking water and the impact of 5G technology on flight safety have also raised the specter of large-scale class action lawsuits, fueled by growing anti-corporate sentiment, mistrust and social polarization.

Insurers have been further hampered by post-pandemic uncertainties over workplace liability exposures and litigation and prolonged low interest rates constraining their investment returns.