The frequency and severity of general liability claims will likely pick up in the near-term as the economy continues to expand, and over the longer-term as new technologies gain greater acceptance.

Recognizing this trend, smart buyers – partnering with their agents, brokers and insurers – are fine-tuning their risk management programs today, to better control the total cost of general liability claims tomorrow.

To guide this process, it is helpful to understand that general liability claims are becoming more polarized, with distinct trends in High Severity and High Frequency claims:

  • High Severity claims typically account for approximately three percent of a general liability policyholder's claims, but drive about 60 percent of total claim costs. These claims are becoming increasingly complex.
  • High Frequency claims represent the remaining 97 percent of claims and 40 percent of claim costs.  These claims have broad trends that are increasingly manageable with the right approach.

Understanding the cost drivers and best claims management practices for each of these claim types will help buyers better manage the total cost of general liability claims.

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