Sean Keely, a Partner with Smith, Gambrell & Russell, LLP and Andrea Silk, Managing Attorney with Gallo Vitucci Klar LLP provided an insightful overview of the hidden exposures insurers face, and the emerging risks expected in 2025 and beyond.
The first area addressed was liability risks for hotels and restaurants from human trafficking. Trafficking lawsuits are on the rise with inception of the federal Trafficking Victims Protection Reauthorization Act (“TVPRA”) and similar state laws, particularly for businesses where there is anonymity, cash transactions, transient guests, and potential harm to minors. The speaker pointed out that although courts differ on the obligation of insurers indemnify these claims, the cost to defend are high. Suggested mitigation strategies included requiring anti trafficking training and policies, adding underwriting questions regarding risk control and monitoring, clarifying policy exclusions or imposing sublimits specific to trafficking risks, and encouraging compliance audits and periodic reviews.
The second issue related to the endurance of climate change litigation. The speaker noted that although the pace of new climate-related cases is slowing globally, litigation has not necessarily slowed in the United States and cases against officers and directors are increasing. The specific industries currently targeted include energy and utilities, chemical, and financial services. The panel discussed various high-profile cases being litigated in state and federal courts and the lessons to be learned.
The final emerging risk highlighted was potential liability for health hazards in beauty salons and med spas. Because these businesses combine personal services with chemical exposure and clinical-style treatments, the scrutiny of product use and safety practices is increasing. As a result, insurers should anticipate a rise in bodily injury and disease exposure claims linked to salon chemicals and treatment environments.
A video replay of this presentation can be accessed in the AIRROC On Demand Library at https://airroc.memberclicks.net/airroc-on-demand.
