Question — Are Your Commercial Clients Properly Insured?

Like a lot of insurance survey’s and reports, this one has a very long title. However, long title or not, the conclusions of Chubb’s 16th annual Liability Limit Benchmark & Large Loss Profile by Industry Sector 2024 Report should be of much concern for your business clients.

The bottom-line is how many businesses are underestimating how much liability coverage they need. Chubb says the severity and frequency of losses is adding up and their insurance coverage isn’t keeping up.

“The delta between liability loss-cost trend and median limits purchased continues to widen at an alarming pace,” Chubb’s report concluded.

Seth Gillston is the head of North America Industry Practices for Chubb. He noted that nine out of 10 industries have lower median limits than they did 10 years ago. In the meantime, businesses are facing new technology risks, climate change, a dangerous legal system where nuclear verdicts are happening more frequently and more third-party litigation funding.

“The increase in elevated liability-related loss costs is driven by a number of factors, including a rise in litigation funding and a perception in society today that the system, including big business, is rigged against everyday people,” Gillston said. “Companies that underestimate the severity of liability losses may face financial, brand, and long-term stock price impacts.”

Source link: Insurance Journal — https://bit.ly/3L6KG1F