Sky-high jury awards and rising public scrutiny are reshaping liability risk, with insurers now treating online reputation as material exposure. As perception and liability blur, brokers must craft credible narratives or risk clients being priced out of coverage.
The rise in nuclear verdicts isn’t happening in isolation - it’s unfolding alongside a sharp uptick in employment and labor disputes across industries. In a recent survey, 34% of corporate counsel reported increased exposure to employment litigation in the past year. While 80% of legal departments are increasingly concerned about nuclear verdicts, 82% say resolving claims early has become more difficult due to inflated demands, rising legal costs, and shifting regulatory pressures.
Natalie Golubski (pictured), a professional lines broker at Jencap and a RISE “35 Under 35” honoree, has watched the ebbs and flows of the D&O and EPL market throughout the years. With nearly a decade of brokerage experience, she said the shift is as much about perception as it is about risk.
“If you're in the public eye, there's more exposure,” Golubski said.
She pointed to the rise in nuclear verdicts driven by public sentiment - juries increasingly awarding massive sums not solely based on damages, but on the belief that companies “have the money and should pay out.”
That mindset, she said, mimics a disciplinary impulse: “That's really what you're coming up against in those types of exposures.”
Even businesses far from the headlines can’t afford to ignore their public-facing identity. Underwriters are scrutinizing websites, social media, and employer review platforms to evaluate potential gaps between applications and reality.
“A diligent broker should be looking at those things too,” Golubski said. “Their application doesn't say this, but their website does.”
She warned that platforms like Facebook, Glassdoor and LinkedIn are now fair game in underwriting assessments. “The underwriter, and even the broker, could come back and see discrepancies.”
That reputational audit can have serious consequences - especially as underwriters tighten terms.
While underwriting restrictions have primarily targeted large public companies, private businesses and nonprofits shouldn’t feel insulated. “There’s not as strict of a change yet,” Golubski said, “but you’re going to see sub-limited exposures based on certain litigation outcomes compared to previous years.”
She added that regulatory proceedings, which once flew under the radar, are now being carved out or sub-limited. The industry’s response is more pre-emptive than ever - and clients must be prepared.
Despite the shifting risk landscape, Golubski said many insureds remain hesitant to report incidents. Fear of premium hikes, higher retentions, or policy non-renewal often keeps early warning signs buried.
“An insured is always nervous to report any type of claim,” she said. But failing to disclose known issues can backfire. “If they knew about it and didn’t report it… that can come back and be like, why didn’t you tell us about this?”
She recalled one small business owner who believed his updated handbook and training would shield him from liability - until an EEOC claim emerged. “He thought he didn’t need insurance. But you never know how someone is going to react.”
That assumption - that robust internal policies are enough to offset risk - is both common and dangerous. “It’s always shocking to see,” Golubski said. “They potentially don’t know they have this type of exposure, especially with EPL claims.”
Businesses without in-house legal teams are especially vulnerable, she said. “If it’s any type of customer service, they should have [coverage]. You don’t know when you’re going to offend somebody, especially in today’s age.”
Outdated handbooks are another blind spot. “Say they have an employee handbook compiled 10 years ago,” Golubski said. “Well, have you ever heard of a thing called COVID?”
For brokers, adapting means moving beyond transactional coverage placement. Golubski encouraged a more narrative-driven approach when working with underwriters.
“Everybody loves a good story, and that’s really how you sell your insured,” she said. “Almost like a Venn diagram - everything they want and need and what the underwriter wants and needs.”
That strategy hinges on relationships. “That’s not something you can just push an email through,” she said. “It still shows that relationships are needed within the industry. Everything can’t be AI.”
In a high-stakes, high-scrutiny environment, brokers must stay proactive, credible, and connected. “That’s not something you can fake,” Golubski said. “You need that honest, real conversation.”
