More than half a century after the first major asbestos lawsuits and decades after stricter regulation reduced use of asbestos, plaintiffs' attorneys who specialize in asbestos litigation remain very active.
You've likely seen TV or online ads from law firms asking whether you or a family member were exposed to asbestos; searches related to mesothelioma continue to attract substantial legal advertising.
The number of asbestos-related suits has increased in recent years, and payouts for plaintiffs who prevail have risen, with many awards and settlements reaching the multi-million-dollar range.
Claims by victims against trusts created when companies declared bankruptcy because of asbestos liabilities have escalated; some trusts are now paying only a few cents on the dollar or have suspended settlements. Organizations involved in abatement work should consider protections such as Asbestos Abatement Insurance.
Insurers have responded by boosting reserves for asbestos claims by hundreds of millions of dollars, reflecting the continuing exposure and uncertainty in many cases.
Some observers point to secondary exposures — for example, family members who came into contact with asbestos carried home on clothing — as a factor in recent filings, but overall mesothelioma incidence has remained relatively steady, and rates in females are significantly lower than in males.
More plaintiffs are also naming "tertiary defendants"—companies with an indirect link to asbestos products—and reported settlements in those cases can be substantial.
If you believe your business has or may have exposure to asbestos litigation, consider industry-specific options such as State Colleges and Universities/CivicPro, and when appropriate, talk to an agent to review your risk and coverage options.
Frequently Asked Questions
Which businesses are most likely to face asbestos liability?
Construction, manufacturing, shipbuilding, and any organizations involved in renovation or abatement work tend to have the highest exposure to historical asbestos use.
How do asbestos trusts affect individual claims?
Trusts set up during bankruptcy distribute funds to claimants, but payouts vary and some trusts currently pay only limited percentages of claims.
Can business insurance cover asbestos-related claims?
Certain liability and specific abatement policies may provide coverage, but availability and terms depend on the policy language and timing of exposure.
When should I contact an insurance professional about possible exposure?
Contact an insurance professional as soon as you identify potential past use or exposure to asbestos so you can assess coverage, notices, and risk mitigation steps.