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More companies had insurance coverage for class action lawsuits in 2022

Class action settlements hit a five-year low by a wide margin this past year, according to Carlton Fields.

Looking at class action suits by type, insurance accounted for 12.1% of these cases in 2022, down slightly from 2021. These figures exclude COVID-19-related claims, Carlton Fields noted, adding most insurance cases involved financial products and offerings or were related to disasters. (Credit: Olivier Le Moal/Adobe Stock) Looking at class action suits by type, insurance accounted for 12.1% of these cases in 2022, down slightly from 2021. These figures exclude COVID-19-related claims, Carlton Fields noted, adding most insurance cases involved financial products and offerings or were related to disasters. (Credit: Olivier Le Moal/Adobe Stock)

This past year, 45.8% of companies facing a class action lawsuit had a portion of their defense costs covered by insurance, up from 32.1% in 2021 and 41.9% in 2020, according to Carlton Fields’ 12th annual Class Action Survey.

While insurance covered a portion of more class action defense costs this past year, the total amount covered by insurance fell around 12%, from 42.2% in 2021 to 30.4% in 2022, according to the Carlton Fields. Companies reported having excess liability coverage or large coinsurance, and are paying more out of pocket as a result. 

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Steve Hallo

Steve Hallo

Steve Hallo is managing editor of PropertyCasualty360.com. He can be reached at [email protected].  

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