Compensation culture

Businesses could face a future liability crisis if they do not face up to growing litigation issues, insurance market Lloyd’s warns. A new report—Directors in the Dock: Is Business Facing a Liability Crisis?—reveals that more than half of business leaders fear the emergence of a US-style compensation culture in Europe and Asia that will swamp them in costly litigation. Two thirds of European business leaders expect to spend more time on litigation-related issues over the next three years and 39% expect the growing risk of litigation to increase the cost of their products and services and stifle risk taking over the next three years.