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What is affecting general liabiity pricing?

Have you been noticing that general liability has steadily trended upward.  To help you control your costs, know your risks.

  • Medical cost inflation - According to Kaiser, per capita basis spending has increased over 31-fold in the last four decades, from $353 per person in 1970 to $11,582 in 2019
  • Social inflation, litigation costs, and litigation financing – Litigation remains high in the US with juries awarding seven figures and greater settlements.
  • Cannabis – Marijuana remains a Schedule 1 drug under the Federal Controlled Substances Act.  Could a legal cannabis business be held criminally liable for aiding and abetting the sale of marijuana remains a challenge?
  • PFAS (polyfluoroalkyl substances) – These man-made chemicals can be detected in food packaging, commercial household products, coatings on kitchen pots and pans, and even drinking water.
  • Glyphosate – known as a herbicide to control weeds and grasses, it has raised safety and health concerns and has driven up litigation.
  • Diacetyl Technology – microwave popcorn has led to plant employees developing a rare lung disease.
  • Nutraceuticals – dietary supplements discovered to contain CBD have resulted in the FDA warning these products are not approved and advise consumers to be aware.  None the less, these products have been the subject of litigation.
  • 5G Technology – while this is the latest technology, there are growing concerns for negative health effects, such as cancer.  While no extensive scientific evidence has shown adverse health impacts, it has not stopped consumers from suits.

While you might not be in the businesses affected, the claims associated with chemicals, substances, inflation, and litigation will surely affect your premiums.

Call us to discuss your liability coverage to insure you are properly covered.

Source:  Zurich North America