High-Low, Nice to Meet YouCurbing the Risks of Litigation in Medical Malpractice Claims

By David Anderson and Chris Frostad, Claims Directors, ProAssurance

In an increasingly contentious and high-stakes landscape, a strategy known as a “high-low agreement” can be an effective tool that allows plaintiffs, defendants, attorneys, and insurance companies to mitigate the risks of litigation and still allow cases to be decided on their merits via a jury trial.

At its most basic level, a high-low agreement is one where the parties agree on certain conditions that will supersede the ultimate jury verdict. Most notably, the parties agree on a “low” amount that will be paid to the plaintiff, even if there is a defense verdict or a verdict awarding a lesser amount. On the “high” side, the parties agree on a ceiling, which is the most that will be paid in the event of a plaintiff verdict, even if the damages awarded are in excess of the agreed upon “high.” In the event a jury returns with a plaintiff verdict and awards damages totaling an amount between the agreed-upon low and high, that is the amount that will be paid, subject to the terms and provisions in the high-low agreement.

If you are interested in further background, benefits, and information on high-low agreements, you can go read more at ProAssurance.com/Knowledge-Center.