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Noneconomic compensatory damages have been targeted as a cause of rising professional malpractice insurance premiums?

User GwydionFR
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Final answer:

Noneconomic compensatory damages have been targeted as a cause of rising professional malpractice insurance premiums.

Step-by-step explanation:

The issue of rising professional malpractice insurance premiums can be attributed to noneconomic compensatory damages.

Noneconomic compensatory damages refer to the non-monetary losses such as pain and suffering, emotional distress, and loss of enjoyment of life that may be awarded to a plaintiff in a malpractice lawsuit.

These damages have been targeted as a cause of rising insurance premiums because they are often difficult to calculate and can result in large payouts

As a consequence, insurance companies may try to raise their premiums to cover the losses incurred from these high-risk cases. However, this can discourage individuals with low or medium risks from purchasing insurance, leading to further financial strain on the insurance company.

User Markus Hi
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