The liability litigation puzzle: Advancing tort reform for meaningful change

Liability litigation continues to account for a small percentage of overall claims, but severity is rising sharply. Anti‑corporate sentiment among younger jurors, early attorney involvement and an uptick in nuclear verdicts are increasing costs and uncertainty. At the same time, recent reforms in states like Florida show that legislative action can shift outcomes meaningfully.

During Sedgwick’s recent In the Know webinar we discussed what’s driving this shift, why “business as usual” approaches are falling short, and where tort reform and litigation funding transparency could create meaningful change. This article highlights select themes from that discussion — while the full webinar goes deeper into jurisdictional nuance, claim strategy implications, and what risk leaders can do now to stay ahead.

Watch the full In the Know webinar now →

Litigation climate: Conditions and drivers

Jury sentiment is evolving, particularly among younger jurors who tend to be more skeptical of large institutions and more open to awarding significant damages. At the same time, plaintiff attorneys are engaging earlier than ever — nearly two‑thirds of liability claims that become litigated involve an attorney within the first two weeks.

Although fewer than 1% of claims are litigated, severity continues to rise, creating outsized financial exposure and influencing settlement strategies well before trial.

Nuclear verdicts remain a pressure point

Verdicts exceeding $10 million remain relatively rare, but their influence is widespread. Median verdicts have increased by roughly 15%, reshaping expectations around settlements, reserves and excess casualty pricing — even for organizations that never see a verdict.

The webinar explores why these outcomes are occurring and how their impact extends far beyond the courtroom.

Florida shows how reform can shift outcomes

Florida’s 2023 tort reform package offers a compelling early case study. Post‑reform data shows litigation volume down by roughly 30%, alongside improving severity trends in new bodily injury claims. While still early, these shifts suggest comprehensive reform can meaningfully influence claim behavior and outcomes.

What risk leaders should be thinking about

Panelists emphasized that organizations don’t need to wait for legislation to act. Aligning internal stakeholders, reassessing exposure in key jurisdictions and engaging thoughtfully with reform efforts can all help organizations better navigate today’s legal environment.

Looking ahead

Sedgwick will continue to monitor legislative activity across states as 2026 sessions advance. We expect further movement in states that introduced — but did not finalize — reform measures in 2025. We also anticipate additional insights from Florida’s post‑reform trend lines.

Sedgwick will host periodic updates and we’ll notify participants about future webinar dates and resources.

In the Know

Watch the full webinar

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