Top 3 Causes of Global Liability Claims = 60% of Value: Allianz Report

Defective product/work quality issues, crashes and human error are listed as the top causes of liability loss for businesses, according to a report published by Allianz Global Corporate Specialty (AGCS).

Collectively, these top three causes of loss for businesses account for more than 60 percent of the value of all liability claims analyzed, while the top 10 causes of loss account for more than 80 percent of all liability losses, said the report titled “AGCS Global Claims Review – Liability in Focus.”

The report is based on an analysis of more than 100,000 liability insurance claims from more than 100 countries received by insurers, including AGCS, for the years 2011 to 2016 with a total value of €8.85 billion (US$9.3 billion).

The report goes on to detail the top three causes of liability loss by total claims’ value:

Examples of such liability losses include: tainted medicine; hot coffee spills in the lap of a customer causing scalding; car explodes due to faulty gas tank design; worker injured when faulty welder explodes.

Examples of collision/crash incidents include: driver speaking on cell phone or intoxicated driver crashes into another vehicle; outdoor venue collapses injuring public; technical problems lead to airplane crash.

Examples of human error include: introduction of wrong fuel type causes a vehicle to lose power and crash; employee opens an attachment and spreads a virus through the company’s IT systems; a private contractor disconnects a pump and doesn’t reconnect it, causing a flood.

The remaining seven of the top 10 loss categories are:

Claims Trends

Additional liability claims trends discussed in the report include: