How Social Inflation Is Driving Up Your Commercial Insurance Rates We’ve seen some jaw-dropping liability claim settlements against big business in recent years.Just recently, corporate giant Johnson & Johnson was slapped with a whopping $8 billion products liability settlement for failing to sufficiently warn doctors of the side effects of the antipsychotic medication Risperdal.These types of lawsuits and big jury awards are on the rise, in part because public sentiment toward big corporations has soured over the years.

When something goes wrong, we like to blame somebody – preferably somebody with deep pockets.So the average American is more amenable to big jury awards.After all, big businesses and their insurance companies can afford it, right? That’s a common attitude.

This increasing hostility toward big corporations is a key element in what the insurance industry calls Social Inflation – and it’s affecting your insurance rates.Society’s views and attitudes about increased litigation, higher jury awards, workers’ comp benefits, and tort reform have changed over the years.And those changing attitudes have led to rising insurance claim costs, which ultimately affects insurance rates.

What’s behind the social inflation trend? Besides hostility toward big business, there are several other factors driving it: All these trends add up to one thing for insurance carriers – greater cost to insure risks.And that inevitably means higher insurance premiums for businesses like yours.How do you protect your business from the growing risk of social inflation? Need more tips on managing your risks? Contact the risk management specialists at BNC Agency.