The Wall Street Journal speaks with David Arick, the president of the risk management society RIMS, about corporate risk managers increasingly complaining about the growing number of so-called “nuclear verdicts,” a term referring to jury verdicts topping $10m. Arick says: “It’s a big concern for insurers, and [especially] insurers that cover certain industries like trucking [and] retail. Insurers are paying for these [verdicts], which drives up the cost of insurance, which drives up the cost of goods and services. It’s effectively becoming a tax.” A Philadelphia jury this year, for example, ordered Exxon Mobil to pay $725m to a service station mechanic who developed leukemia.
‘Nuclear verdicts’ are driving up the costs of doing business
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