Legal, Medical and Emerging Trends Affecting Liability Losses

In the past few years, there are a number of legal and medical issues that, when combined, have driven liability costs even higher. We partnered with our friends at Liberty Mutual Insurance to explain some of the elements that are causing liability costs to rise as well as a few steps to keep you and your loved ones protected at the best value.


Escalating Verdicts—Cases going to trial result in higher paid costs. While headlines have focused on auto liability, we see this impacting general liability as well.

Litigation Funding—Outside investors are fronting legal fees, resulting in more cases going to trial, which can drive up claim severity.

Traumatic Brain Injury—Plaintiff attorneys are including TBI at the onset of claims, leading to more medical costs and life care plans. TBI claims have grown in recent years.


Medical Inflation—In recent years there has been a two percent increase in medical inflation, a 2.4 percent increase in prescription drug inflation and a 5.6 percent increase in hospital cost inflation.

Opioids—Average costs are higher when patients are dependent on opioids. New opioid treatments and other newer risks facing businesses today can create challenges for employers if not managed effectively.

Wellness—The aging population and overall decline of our health and well-being is putting pressure on costs. The increase in co-morbidities and preference for non-surgical and non-opioid treatments are driving use of physical medicine therapies.

Inability to Manage Medical—Unlike workers compensation claims, insurance carriers have little influence on how medical insurance is managed.

Emerging Trends

Violent Events—Active shooters and other crisis situations are causing organizations to re-assess their risk and readiness.

Technology—Data and technology are disrupting how we do things. From A.I. (artificial intelligence) and autonomous vehicles to data-driven environments, these advancements can help us be safer, but not without risk. Technology-sensor-loaded gear in the form of vests, glasses, gloves and more, may help improve workplace safety and productivity. But, it’s also in its infancy, so you should review information carefully and identify objectives and potential impacts before moving forward.

Sharing Economy—The lack of clarity in where coverages begin and end in the sharing economy is driving the need for custom insurance solutions.

What Can You Do?

Partner with an insurance carrier who understands your industry and your unique risks and can create a tailored solution specific to your business.

Get extra protection when you need it most. Make sure you have appropriate umbrella and excess liability coverage.

Disaster preparedness planning can help you identify vulnerabilities and dependencies in the event disaster strikes.

Expert claims management for the best possible outcome can impact your total cost of risk.

Risk control resources and a packed calendar of webinars and in-person training to help you identify and mitigate risk. Topics include contractual risk transfer, industry-specific risk improvement tools, product liability and more.

With an ever-evolving landscape, liability insurance can be difficult to navigate. Here at Penny Insurance Agency, your peace of mind is our priority. Give us a call today to connect with a Penny Insurance agent to discover your best liability coverage options.