European businesses with exposure to the US may need to reassess their casualty risk as the frequency and size of so-called nuclear verdicts continue to present challenges for insurers, according to Munich Re, the global reinsurer.
The reinsurer says a recent US jury award of USD $604 million following a fatal truck accident illustrates how liability can extend beyond those directly involved in an incident. The freight broker in the case was also found liable, despite not employing the driver and having selected a carrier with a satisfactory safety rating.
For insurers and their corporate clients, Munich Re says the case demonstrates the importance of looking beyond the immediate cause of a loss. Contractor selection, oversight, governance, documentation and business decisions can all become relevant when liability is contested.
Nuclear verdicts, generally referring to jury awards above USD $10 million, remain a significant concern for the US casualty market. Munich Re says the exposure is not confined to US-based businesses. European companies can also become involved in US litigation through subsidiaries, manufacturing sites, products, contractors, vehicles, distributors or other commercial relationships.
The scale of recent awards underlines the issue. Munich Re cites the 2026 Marathon Strategies Report, which found that almost 200 corporate lawsuits resulted in verdicts of at least USD $10 million in 2025, more than 40% higher than in 2024. More than 40 awards exceeded USD $100 million.
Munich Re notes that several factors are contributing to the challenging claims environment, including increasingly sophisticated litigation strategies, third-party litigation funding, claims inflation and rising legal costs. Social media can add another layer, allowing narratives surrounding an incident to spread rapidly and potentially influencing both claim activity and public perceptions.
The reinsurer also points to emerging areas of liability, including litigation surrounding ultra-processed foods. Munich Re adds that it remains uncertain whether such cases will develop into a major mass-tort exposure, but the issue illustrates how scientific research, regulation, public health concerns and litigation strategies can combine to create new liability risks.
For European risk managers, Munich Re says understanding US exposure should therefore extend beyond reviewing insurance limits. Businesses should consider how contractors are selected and monitored, whether internal procedures are consistently followed and how decisions are documented.
Munich Re also stresses the importance of preparedness once a serious incident occurs. Effective claims management, early coordination and access to local expertise can help companies and their insurers respond to complex US liability claims.
While European courts are unlikely to generate nuclear verdicts on the same scale as the US, Munich Re says European companies with American operations or commercial interests cannot afford to regard the issue as solely a US problem. A clearer understanding of potential exposures can help businesses and insurers assess casualty risks before a significant claim develops.
