by FCIS Team | This article was posted on 12 15, 2020 | Uncategorized
Think You’re Covered? Think Again.
Social inflation is happening, and whether we like it or not, it’s changing the insurance game. What is social inflation, you ask? It’s a combination of social and legal factors that are increasing the frequency and severity of liability claims. As a result, the cost of claims is rising, leading to rate increases as insurers try to cover their losses.
Factors driving social inflation include:
• Increased litigation, partially due to claimants receiving help from outside investors to bring their cases to court.
• Legal decisions leaning in the plaintiff’s favor as a result of increased juror bias against corporations.
• Larger awards as state courts raise or entirely eliminate caps on damages.
The result? That $1,000,000 policy might not be enough anymore. But don’t panic — we’ve got your back. Let’s connect to review your current coverage and evaluate how social inflation may impact your insurance needs.
Contact us at (805) 523-8600 to learn more!