Authored by Sara Weathers
Personal injury firms are seeing larger verdicts, higher settlement demands, and more complex litigation than ever before. While that growth is positive for revenue, it also heightens risk exposure, particularly when cases involve catastrophic injuries or eight-figure demands.
Here are the insurance considerations PI firms should review now:
1. Professional Liability Limits May Be Too Low
Higher verdicts bring greater scrutiny. Even when firms prevail, malpractice claims may arise from alleged missed deadlines, inadequate case evaluations, or failure to advise clients of settlement opportunities.
Many firms still carry limits purchased years ago, before verdict values escalated. If your average case value has increased, your policy limits likely should, too.
2. Excess & Umbrella Coverage Matters
Defense costs alone can exceed primary limits in high-profile disputes. An excess professional liability policy offers crucial additional protection.
3. Cyber Exposure Is Elevated
Personal injury firms store highly sensitive information, including medical records, Social Security numbers, and financial documents. A breach involving this data can be costly and damaging to your reputation. Ensure your cyber policy includes:
- Ransomware coverage
- Social engineering fraud coverage
- Business interruption
4. Litigation Funding Agreements & Coverage Review
If your firm uses case-expense funding or structured financial agreements, review contracts closely. Some funding arrangements impose reporting or disclosure obligations that could affect coverage if not managed properly.
5. Reputation Risk
High-value cases often attract media attention. Consider whether your insurance program includes crisis management or public relations support.
As verdict values rise, so does your firm’s exposure. Insurance limits and coverage structure should grow as your caseload grows.
