Nuclear verdicts can have a significant impact on insurance companies and their clients, particularly in the following industries: commercial auto, product liability, directors and officers, medical malpractice, and professional liability. In some cases, the damages awarded can exceed the limits of the insurance policy, leaving the insured to cover the remainder of the damages out of pocket. Nuclear verdicts can have a significant impact on insurance companies and their clients, particularly in the following industries: commercial auto, product liability, directors and officers, medical malpractice, and professional liability. In some cases, the damages awarded can exceed the limits of the insurance policy, leaving the insured to cover the remainder of the damages out of pocket. Photo: moodboard/Adobe Stock

The insurance industry is no stranger to high-stakes claims. However, over the past several years, there has been a growing trend of what is known as "nuclear verdicts," or exceptionally high jury awards that surpass what should be a reasonable or rational amount. Nuclear verdicts can have a devastating impact on insurance companies and their clients, and it's critical for insurance claims executives to understand how to manage them.

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