Product Liability Verdicts Are on the Rise but There Are Ways to Avoid Them

Nuclear verdicts in product liability suits are on the rise. But manufacturers and their insurance companies can take multiple steps to prevent and defend against large jury verdicts, insurance and legal experts said at a recent webinar hosted by Travelers.

“It feels like it’s coming to a boiling-over point right now, really accented by all of these headlines on nuclear verdicts,” said Elise Schreier, vice president for liability claims at Travelers.

Plaintiffs’ lawyers have exploited social, regulatory and legal environments in recent years; attorney advertising has amped-up injured parties’ hopes and financial goals; claims aggregators find many new plaintiffs, which raises the stakes; and litigation funding is contributing to more and increasingly costly lawsuits, turning the tort system into a massive investment mechanism, Schreier said.

Related: Litigation Financing Hits a Wall

Product makers and insurers, though, can take action before, during and after claims arise, the panelists noted. Here are some of the key measures that can be adopted to help reduce liability and costly verdicts:

Avoid “bad facts” and incriminating internal communications. Trial lawyers, during the discovery phase of litigation, will demand years of emails and other communications. If corporations appear to disparage customers or blame the injured parties, juries are more likely to come back with higher damage awards, including punitive damages. Be sensitive in emails, not calloused, said Alexandra Lahav, law professor at Cornell University. Studies have found that juries tend to find against a defendant if it is shown that the culprit was involved in nefarious activity – even if all other circumstances are the same.

Stay away from decisions that may indicate, at least to a plaintiff’s lawyer or a jury, that the manufacturer opted for a cheaper but less-safe material or vendor, said Reese Cann, assistant vice president for risk control at Travelers. Always conduct product hazard analyses early on, making sure to consider who uses the product. Manufacturers should compare warning labels to their competitors’ for similar products, Cann noted.

When an injury happens, respond and communicate quickly but with empathy for the injured persons. Manufacturers should notify their insurance companies and attorneys promptly. Gather evidence and take steps to prevent further injuries related to the product. When appropriate, take a holistic approach and show how the company has provided help for people and the community.

Related: Info on Top Verdicts in Recent Years

Check vendors’ contracts and insurance levels. As the cost of liability insurance has climbed, some suppliers may have reduced their policy limits, potentially leaving manufacturers on the hook for more of the damages, Schreirer and Cann explained. Too often, Cann said, contracts with suppliers don’t make it clear that if the vendor is at fault, it should be financially responsible for the losses. And keep careful track of all contracts, product documentation and other paperwork through the years.

Keep up with post-sale monitoring of products. Check social media regularly for complaints about products and for unsafe and improper uses of the product, then take action to prevent misuse, Cann said. Plaintiffs’ lawyers will be sure to scour social media postings and may try to show that the manufacturer knew about unsafe practices.

Be ready to go to trial. While early empathetic communication with injured consumers can help reduce litigation, companies may have to try the case before a jury if the plaintiffs continue to press unreasonable settlement demands. Partly by following its best practices, Travelers saw a 73% success rate at trial from August 2024 to August 2025, Schreier said.

Insurance and commercial interests should continue pressing state legislators for tort reform. Schreier noted that Florida and Georgia have passed major tort-reform laws in the last few years that have helped curtail large verdicts and insurance costs, but many other states have not.

Spread the word about the complications from litigation funding. Schreier and Lahav said that some lawsuit funding groups will extend high-interest loans to plaintiffs while litigation is brewing. As time goes by, the amount of the loans and the interest can add up, making it impossible for injured people to settle for a reasonable amount.

Topics Liability