A single accident. A single lawsuit. A single jury decision. That’s all it can take to turn a thriving business into a cautionary tale, especially in today’s world of nuclear verdicts, where jury awards can soar past $10 million or more. For business owners, this isn’t a distant legal trend, it’s a growing risk with real financial consequences.

So how do you protect your company, reputation, and future in a legal environment where the stakes have never been higher?

1. Understanding the Rise of Nuclear Verdicts

Nuclear verdicts are large jury awards that far exceed traditional compensation amounts. These judgments often stem from emotional responses, perceived corporate negligence, or aggressive legal strategies that target deep pockets.

Example: A trucking company was ordered to pay $280 million after an accident involving one of its drivers, far beyond what most businesses could survive without extensive liability coverage.

Juries are increasingly holding businesses to a higher standard, especially when safety policies, employee training, or documentation fall short. Even small businesses are not immune.

2. Strengthening Your Risk Management and Safety Culture

One of the most effective ways to reduce legal exposure is to proactively minimize risk. A strong safety and compliance culture can significantly influence both accident prevention and jury perception.

What this looks like in action:

• Regular safety training for employees
• Documented maintenance and inspection logs
• Enforced company policies with consistent accountability

Example: A manufacturing company avoided litigation after a machinery injury because they had extensive safety records, employee sign-offs, and video documentation of procedures being followed.

Being able to prove diligence can be the difference between a manageable claim and a devastating verdict.

3. Are Your Liability Limits Enough? Reevaluate Your Coverage

Many businesses carry general liability, auto liability, and workers’ compensation policies, but in the era of nuclear verdicts, standard limits may not be enough.

This is where umbrella and excess liability policies become critical. These policies extend your coverage once primary insurance limits are exhausted, offering protection when a claim spirals into the millions.

Ask yourself:

• Would our current insurance limits cover a $5 million lawsuit? What about $25 million?
• Do we work with the public, transport goods, or employ drivers? If so, we’re at higher risk.
• Have we reviewed our policy limits in the past 12 months?

4. Documentation, Contracts, and Legal Preparedness

The courtroom often comes down to one thing: proof. Accurate documentation and strong contracts can dramatically influence legal outcomes.

Best practices include:

• Updated vendor, subcontractor, and employee contracts with clear indemnity and insurance requirements
• Incident response procedures and post-event documentation protocols
• Digital storage of training records, safety manuals, and communication logs

Example: A property management company faced a slip-and-fall lawsuit that could’ve resulted in a multi-million-dollar award, until surveillance footage and documented maintenance logs proved they followed proper safety procedures.

5. Partnering with the Right Insurance Advisor

Insurance isn’t just about buying a policy, it’s about building a strategy. Working with an experienced advisor who understands your industry and evolving legal risks is critical.

At Hertvik Insurance Group, we help business owners:

• Analyze gaps in liability protection
• Craft tailored insurance programs, including umbrella and excess liability policies
• Develop risk management strategies to strengthen defensibility in court

Protect Your Business Before It’s Too Late

In today’s legal environment, the question isn’t if a claim could happen, it’s whether your business could survive it. Nuclear verdicts are reshaping the liability landscape, but with the right planning and protection in place, you don’t have to face them alone.

Contact your Hertvik Insurance agent today to review your coverage and ensure you’re properly protected going into 2026.