Know Your Limits | 2025 Losses Explained
Many unique needs. One Price & Ramey.
Throughout 2025, we have highlighted some key losses others have experienced. We are compiling them here to ensure our insureds know the limits to their coverage and are properly covered for 2026. If you have questions or concerns about your coverage, we ask that you reach out to one of our licensed agents as soon as possible.
Municipality Agrees to $18.3 Million Settlement After Woman Slipped on Sidewalk—Liability
A municipality has agreed to a pre-trial settlement of $18.3 million after a resident tripped over a damaged section of sidewalk uplifted by a tree root. According to the lawsuit, the protruding sidewalk was obscured by overgrown plants, which compounded the hazard. As such, the contractor responsible for sidewalk landscaping agreed to contribute $200,000, bringing the total settlement to $18.5 million. The city was accused of neglecting sidewalk maintenance, and the plaintiff’s attorney identified several additional hazardous sidewalks that could pose trip hazards, suggesting a longstanding maintenance problem. Moreover, the city had not provided municipal staff with instructions and training on how to report damaged sidewalks. The injured resident, a woman in her 60s with existing mobility issues, suffered neck and head trauma in the fall. These injuries required surgery and worsened the woman’s existing medical conditions— she remains partially paralyzed, according to the lawsuit.
Borough and School Board Suffer $4.8 Million Losses in Email Spoofing Attack—Cyber
A New Jersey borough and its school board suffered multimillion-dollar losses in a sophisticated email spoofing scheme. Without gaining access to the school district’s network, a cybercriminal impersonated employees and spoofed email addresses, tricking school and borough officials into believing they were corresponding with each other. The deception resulted in two fraudulent wire transfers totaling $4.8 million. Although $1.7 million has been recovered, more than $3 million remains unaccounted for, according to the borough’s mayor. The borough and school board are working with insurance carriers to recover the funds and plan to tighten cybersecurity protocols going forward.
Rooming House Assault Leads to $21.5M Jury Award—Liability
A Baltimore jury has awarded $21.5 million in damages to two residents following an assault at a West Baltimore rooming house. The incident occurred one evening in September 2023 when a property maintenance employee, permitted to reside on-site, created a disturbance in a shared area. One resident was restrained and attacked after leaving their unit to investigate, while another was awakened and restrained. Both victims suffered a violent assault that left them with life-threatening injuries. The lawsuit alleged negligent hiring, as neither the landlord nor the property management company conducted a background check on the worker before employing him to assist with rooming house maintenance. Proper vetting would have revealed that the worker had previously served prison sentences for violent crimes. Accordingly, the incident was entirely foreseeable, according to the plaintiffs’ lawyer. The jury held the landlord and property management company liable, awarding $21.5 million in damages, including $5 million in noneconomic and $5 million in punitive damages for each victim.
Machinery Company Pays $2 Million to Settle Discrimination Lawsuit— Employment Practices Liability
An Ohio-based machinery company agreed to a $2 million settlement after a federal lawsuit alleged that it discriminated against an HR director and multiple women who applied for jobs. According to an Equal Employment Opportunity Commission (EEOC) attorney who supervised the litigation, the company systematically denied production jobs to women and retaliated against an HR director after she hired two woman project managers, who were later fired and replaced with men. Moreover, the company had no women’s restrooms on its plant floors. In addition to providing monetary relief, the machinery company must work with the EEOC to improve its equal employment opportunities for woman job applicants, including reviewing previously rejected candidates.
Bar Settles Lawsuit for $6.5 Million Following Drunk Driving Death—Liquor Liability
A South Carolina bar has agreed to pay $6.5 million to settle a wrongful death lawsuit after a man was killed in a collision with a drunk driver whose vehicle crossed over the center line. The driver, who also died in the incident, was allegedly overserved by the establishment. The family of the man killed in the collision filed the lawsuit in 2021. The plaintiff’s attorney alleged that the restaurant contributed to the crash because it provided the driver with alcohol that brought him to and beyond the point of intoxication. The family’s complaint also noted that the driver was visibly and severely intoxicated while the restaurant’s staff continued to serve him.
Family Receives $205 Million Jury Award After Amusement Park Fatality—Liability
A Colorado jury awarded $205 million to the family of a girl who died at an amusement park in 2021. The girl, who was not buckled in on a ride at the park, fell from her seat. The lawsuit said the death was a result of the park’s pattern of improper training and recklessness. The park’s parent company, the company that designed the ride and the ride’s two operators were named in the lawsuit, which alleged the park had been twice-warned about lax seat-belt checks but failed to inform state investigators about those incidents. State investigators determined the ride’s system had been reset to bypass an alarm that would have provided a warning that the girl was not buckled. They determined the girl died due to inadequate training and multiple errors by the ride operators who had been hired just weeks before the incident. The award consisted of $82 million in noneconomic damages and $123 million in punitive damages.
Jury Awards Patient $70.8 Million in Medical Negligence Case—Medical Malpractice
A Florida jury awarded a patient $70.8 million after determining a hospital’s freestanding emergency department failed to recognize and treat a life-threatening injury following a patient’s July 2021 visit. However, the monetary relief provided may be impacted by a Florida law that limits noneconomic damages in medical malpractice cases to $200,000 when the injured party is on Medicaid. In this case, the patient was experiencing a very painful headache and emergency responders rushed her to the emergency room. She told the nurse her pain was the worst she’d ever felt and that she had just returned to taking birth control, a risk factor for blood clots. According to her attorney, the patient was in her 40s, overweight and had diabetes, also increasing her risk factors. However, no one ordered a CT scan that could have potentially detected a blood clot. Instead, she was discharged with headache medication after having bloodwork done and a COVID-19 test performed. Two days after the visit, the woman suffered a stroke and imaging showed extensive brain blood clots. The stroke caused permanent brain damage and some paralysis on her left side. It also left her mostly blind and with memory difficulties and a severe stammer. She is unlikely to be able to work. The lawsuit named the hospital, a contracting service and the agency’s nurse as defendants. The on-duty doctor was also named in the lawsuit but settled out of court.
Car Rental Company to Pay $1.8 Million Following Age Discrimination Lawsuit—Employment Practices Liability
The U.S. Equal Employment Opportunity Commission (EEOC) announced a Florida car rental company must pay $1.8 million and provide nonmonetary relief after being named in a federal age discrimination lawsuit. The EEOC stated the company failed to hire individuals 40 or older for its management trainee position from at least 2019 to the present, even though approximately 15% of applicants were of that demographic. According to the EEOC, employees 40 or over accounted for only 3% of all hires, and over 125 witnesses could testify they were asked their age or graduation year during the hiring process, were told that most candidates recently attended college, were discouraged from pursuing the position or endured other age-related comments. The three-year consent decree also includes requirements for the company to implement new Age Discrimination in Employment Act (ADEA) policies, conduct ADEA training, post a notice about the lawsuit and investigate all age discrimination complaints.
Jury Awards $20 Million to Nurse Fired by Hospital—Employment Practices Liability
A nurse received a $20 million award after a federal jury in Colorado determined she was the victim of workplace racial discrimination. The jury found that the nurse, who is Black, was fired by her employer, a hospital, because of the complaints she had made about her mistreatment by white co-workers. The plaintiff alleged her employer used a patient’s death from natural causes as an excuse to fire her. According to the lawsuit, the 94-year-old patient was experiencing organ failure, and the family agreed to turn off the ventilator. The plaintiff, who stayed past her shift, then followed a respiratory therapist’s directions on switching off the ventilator, according to the lawsuit. The Colorado Attorney General’s Office originally filed manslaughter charges against the nurse but eventually dropped the case. The plaintiff stated the hospital had pushed for her prosecution and sent incorrect information to the state Board of Nursing. The jury award comprised $5 million in compensation for lost wages, reputation damage and emotional distress. The remaining $15 million was for punitive damages. The hospital plans to appeal.
Lawsuit Settled for $16 Million Following Fatal Impaired Driving Incident—Commercial Auto
An Ohio packaging company agreed to pay a $16 million settlement after a fatal 2024 car crash involving one of its drivers. The estates of four individuals killed in the wreck, along with another seriously injured party, alleged that the company was negligent when it hired the employee, who drove while intoxicated and struck the vehicle with the five occupants. The company’s employee allegedly drove over 70 mph and reached nearly 90 mph in a 40-mph zone. Multiple police departments received reports of a reckless driver in the area of the crash that day. The driver, who also allegedly rear-ended a pickup and failed to stop, also faces criminal charges.
Chemical Companies Agree to Pay Up to $2 Billion to Settle PFAS Claims—Environmental Liability
Three chemical companies have agreed to pay New Jersey up to $2 billion to settle environmental claims arising from perfluoroalkyl and polyfluoroalkyl substances (PFAS). These substances, commonly known as “forever chemicals” since they resist breaking down and can build up in people, animals and the environment, have been linked to several adverse health effects. Environmental activists allege that PFAS manufacturers were aware of these risks long before they were made public. Pursuant to the settlement, the three companies will pay $875 million over 25 years and establish a remediation fund of up to $1.2 billion. If approved by the courts, the companies will split the costs. This settlement is in addition to another company recently agreeing to a $450 million settlement with New Jersey regarding PFAS contamination of natural resources.
Carmaker to pay $243 Million After Fatal Collision Involving Autopilot Software—Product Liability
A federal jury in Florida determined an electric vehicle manufacturer must pay $243 million after a 2019 incident involving one of its vehicles resulted in the fatality of one individual and severe injuries to another. The plaintiffs’ attorneys alleged the vehicle’s autopilot driver assistance software failed to alert the driver and activate the brakes. According to testimony, the driver lost sight of the road after dropping his phone while approaching an intersection. He then continued through the intersection and struck a parked SUV with two individuals standing near it. Neither the driver nor the autopilot software engaged the brakes in time to prevent the car from hitting the SUV. The jury determined that the company misrepresented the software’s capabilities, withheld critical crash data and must pay $200 million in punitive damages. The jury also determined the plaintiffs should receive around $129 million in compensatory damages, and since it found the driver two-thirds liable for the incident and the company one-third at fault, the automaker is responsible for approximately $43 million of that award. The company has filed an appeal.
Jury Awards $42.6 Million After Asbestos Contaminates Baby Powder—Product Liability
A Massachusetts jury determined an American multinational corporation must pay $42.6 million to an individual who developed mesothelioma after regularly using the company’s talc-based baby powder. According to the plaintiff’s attorney, the man had no occupational exposure to asbestos, and the personal use of the baby powder was the likely cause of his cancer. During the trial, jurors reviewed company documents demonstrating that it knew about the asbestos contamination, manipulated scientific testing to maintain the product’s reputation and failed to adopt alternatives that were safer, ultimately finding that the company was liable for negligence and breach of warranty.
Food Company Anticipates a $350 Million to $400 Million Loss in Sales Following Cyberattack—Cyber
A Rhode Island-based food distributor is anticipating sales losses ranging between $350 million and $400 million after a cyberattack impacted its online systems in June. The company expects to limit the overall operational impact to the second quarter and has been working with its suppliers and customers to fully recover from the cyber event. According to the company’s president and CEO, the business took on $20 million in expenses to address spoilage following the cyber event and spent $5 million for legal assistance, cybersecurity experts and other incident-related costs. The company also expects to log a pre-tax and free cash flow loss between $65 million and $75 million.
Soda Company Settles False Advisement Lawsuit for Nearly $9 Million—Liability
A Texas-based soda company agreed to an $8.9 million settlement after a class action lawsuit alleged it falsely advertised that its carbonated prebiotic drinks were “gut healthy” with no scientific backing. Consumers who purchased the beverages between Jan. 23, 2020, and July 18, 2025, are eligible for compensation. The exact payout may vary for the company depending on the number of claims filed. According to the lawsuit, the beverage did not include enough of a prebiotic fiber to make a difference in consumers’ gut health unless four or more cans were consumed. Plaintiffs, who allegedly paid a premium for the product, claimed any gut health benefits from drinking that much soda would be offset by the drink’s sugar content. The final approval hearing for the settlement is scheduled for Nov. 20, 2025.
Price & Ramey is committed to helping you, your family, and your business. For additional risk management guidance, contact us today.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Employers should consult with legal counsel or safety professionals for specific compliance recommendations.