What these trends mean for businesses For small and midsize businesses, defending litigation is costly and distracting. Compounding this risk is the di昀케culty in predicting lawsuit outcomes, with social in昀氀ation leading to larger awards and pressuring defendants to make bigger settlements. In this environment, even seemingly minor incidents can lead to signi昀椀cant lawsuits. For example, auto accidents involving 昀氀eet vehicles have become preferred targets for plainti昀昀s’ attorneys. During challenging economic conditions, claims by employees and third parties tend to increase. Businesses should carefully examine their liability exposures and seek to mitigate those through robust risk management and insurance. Amid current litigation trends, working with quali昀椀ed professionals in law and insurance is essential to ensure businesses are protected. “Nuclear verdicts”—those totaling more than $10 million in damages—not only are becoming more frequent, but they also are getting larger. A 2022 U.S. Chamber of Commerce study analyzed nuclear verdicts nationwide. The study found that between 2010 and 2019, juries issued 1,376 nuclear 1,376 verdicts. Two-thirds of the verdicts involved product nuclear verdicts issued by liability, auto accidents, and medical liability. More than juries between 2010 and 2019 15% of the verdicts involved premises liability. For businesses, nuclear verdicts have direct and indirect impacts. The publication of huge jury awards tends to 2/3 make settling lawsuits more expensive, and insurance of the verdicts involved companies paying out large liability claims generally product liability, auto raise rates and become more selective about the accidents, and medical liability industries they insure. One reason for higher verdicts is growth in litigation 昀椀nance, in which third parties provide funding for plainti昀昀s’ lawsuits. Legislators are beginning to limit or regulate litigation funding. 15%+ As of late January 2023, according to a Greenberg of the verdicts involved premises liability Traurig analysis, eight pieces of legislation or regulations pertaining to litigation 昀椀nancing were pending nationwide. Business Business InsurInsurance ance TTrrendsends 1414