Battling the Trial Lawyers

As you may have already noticed, our cover story is on professional liability. When selecting material for this issue, we found no shortage of information to pick from. Professional liability has long been a difficult coverage to place, because of its various degrees of risk. In researching the issue, we noted that most areas of professional liability are still seeing exorbitant premiums and a squeeze on availability.

Several factors have contributed to these constrictions on the professional liability marketplace–excessive litigation, corporate scandals, and a heightened awareness of proper behavior in the workplace–to name a few. Excessive litigation and tort reform has been a hot topic on the industry’s list for quite some time now, and it seems as if the problem is certainly coming to a head in some parts of the country.

Frivolous lawsuits are a drain on our society and need to be stopped. The money and resources wasted on fighting these lawsuits is reprehensible. As taxpayers, we are bearing the burden of these frivolous lawsuits in the form of higher taxes, higher insurance premiums, and increased prices for products and services. Businesses and manufacturers are closing up shop, doctors are abandoning practices, non-profit organizations are seeing a decline in both volunteers and charity contributions, and trial lawyers are laughing all the way to the bank.

The number of civil lawsuits filed in this country annually is staggering. Millions are filed each year in state and federal courts. Lawsuits have become infamous for their absurdity–just take a look at the “Looney Lawsuits” on American Tort Reform Association’s Web site at www.atra.org.

What’s even more disturbing is the preying trial lawyers who routinely recruit clients–creating a lawsuit out of a non-existent problem. Geographical areas are targeted for certain characteristics of their jurisdiction which predispose the case to be decided in a biased manner. You may recall ATRA’s recently released list of the nation’s “judicial hellholes,” in which several Western cities landed in the top 10.

Tort reform has been on the national political agenda for quite some time now. However, the political pull between parties has consistently prevented any meaningful reform from being passed. In the states, some progress is being made in the form of cap limits and restrictions on admissible evidence and witnesses.

We are still a long way from relief; however. That’s why it is so important that the insurance industry has recognized and continues to support change in the U.S. judicial system. As an agent or broker, you should be proud of the industry’s stance on tort reform. It’s your support that will eventually lead to a victory to this fight.