LIABILITY COVERAGES
WHAT IS A NUCLEAR VERDICT?
Nuclear verdicts refer to exceptionally high jury awards, generally, those exceeding $ 10 million. Such verdicts have become increasingly common in the past decade. In fact, communications firm Marathon Strategies reported that 135 corporate lawsuits across 55 different sectors led to nuclear verdicts in 2024, totaling $ 31.3 billion. This marks the highest number of such verdicts since 2009, representing a 52 % increase in frequency and a 116 % rise in severity compared to the prior year. A variety of factors have contributed to this trend, including rising litigation funding, eroding tort reform, and heightened juror skepticism toward corporate defendants. Amid growing corporate distrust, businesses have not only been expected to meet higher standards in their operations but have also been held more accountable for their wrongdoings. Upon being sued and taken to court, businesses have frequently encountered juries that are sympathetic to plaintiffs. Compounding this issue, there’ s a rising perception that businesses( especially large ones) can always afford the cost of damages. This means juries are likely to have fewer reservations when awarding substantial damages to plaintiffs, resulting in nuclear verdicts.
Nuclear verdicts can carry significant consequences for businesses of all sizes and sectors, causing lasting reputational harm, posing underinsurance concerns, and wreaking large-scale financial havoc. They may also erode liability coverage limits across multiple layers, increase reinsurance costs, and prompt stricter underwriting scrutiny across casualty lines. That’ s why it’ s vital for businesses to better understand these verdicts and how to prevent them. This case study summarizes a recent nuclear verdict, outlines factors that led to the verdict, highlights associated compliance considerations, and provides related risk mitigation measures.
CASE DETAILS
In November 2021, a 9-year-old boy was attending another child’ s birthday party at the sports entertainment chain Topgolf in Hillsboro, Oregon, when he was struck in the head with a golf club and suffered
26 • SpectrumInsGroup. com