Liability insurance premiums are surging, and in some cases they've quadrupled since 2020.

This isn't about property damage. It's about lawsuits. I'm Kathy Fedke, and this is real estate news for investors.

This is Real Estate News with Kathy Fedke.

According to a report highlighted by BizNow and data from CRE Daily, more commercial real estate investors are getting hit with claims, and the payouts are getting bigger.

Federal tort cases are up 20 percent from 2022 to 2024.

Premises liability cases, things like slip and falls, are up 25%.

And here's the bigger issue.

We're seeing more nuclear verdicts.

That means jury awards over $10 million.

Those cases are pushing insurance companies to raise prices and pullback coverage.

One large commercial real estate firm, Time Equities, says their umbrella and excess liability premiums have quadrupled since 2020.

That is a major jump.

So what is driving this?

Well, part of it is aggressive legal marketing. Big personal injury firms are spending heavily on ads. That's leading to more claims being filed. And at the same time, severe liability claims on commercial properties have jumped over 57% over the past decade. We're talking about incidents like slip and falls, elevator accidents,

and even toxic exposure. Now insurers are reacting. General liability rates have risen as much as

30% and many policies are adding new exclusions. Some are no longer covering claims tied to firearms,

sexual abuse or animal attacks.

In certain areas, properties with high crime rates are becoming harder to ensure at all.

For investors, this is where it gets real. If you're a smaller landlord, you may have fewer options. That could mean turning to the surplus lines market,

where coverage is more expensive and more limited. Even though overall property insurance rates

have eased a bit, liability insurance is moving in the opposite direction, and it's not slowing

down. So what can you do if you're a commercial real estate investor? Well, you can't

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