The Courtroom Risk No One in Power Generation Can Afford to Ignore
In today’s energy landscape, power companies face not only the challenges of decarbonization, market volatility, and aging infrastructure but also a rapidly growing legal threat that demands board-level attention.
In a recent article published by Power, Randy Sadler of CIC Services discusses how product liability litigation resulted in $13.7 billion in damages across the U.S. in 2024, with energy providers increasingly targeted due to failures involving third-party technologies and legacy systems. The median mega verdict has doubled to $51 million, reflecting a shift in jury sentiment toward harsher penalties for perceived negligence, even when companies comply with regulations.
High-profile cases, such as the $109 million verdict against CPS Energy and the $85 million judgment against PacifiCorp, illustrate the financial and reputational risks utilities now face. In response, leading firms are adopting proactive strategies, including captive insurance structures, to mitigate legal exposure, fund long-term defense efforts, and invest in preventative safety measures. As litigation risk becomes systemic rather than situational, energy companies must evolve their risk architecture to ensure resilience in an increasingly unforgiving legal climate.
Read the full article here to learn how captive insurance can help energy companies manage litigation risk and protect against costly infrastructure failures.