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$1,000,000 insurance coverage is no longer enough

by FCIS Team | This article was posted on 12 15, 2020 | Uncategorized

Think Youre Covered? Think Again.

Social inflation is happening, and whether we like it or not, its changing the insurance game. What is social inflation, you ask? Its 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 plaintiffs 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 dont panic weve got your back. Lets 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!