Legislative Trends: Limiting the Liability of Utilities in Wildfire Losses

Register here!

In the wake of the devastating January 2025 wildfires in California, the Governor of California proposed new legislation seeking to cap the property insurance industry’s ability to recover from investor-owned utilities whose equipment and/or conduct caused a wildfire. While the insurance industry was ultimately able to defeat this bill, it is emblematic of a growing trend throughout the United States seeking to insulate utilities from liability, including, and in some instances focusing primarily on, subrogating insurers' ability to recover from said utilities. This session will provide the history and background of complex subrogation actions investigating and litigating wildland fires, including an explanation as to the increased occurrence and risks associated with wildland fires in the past decade that have led to the current landscape. The session will then explore the various legislative approaches taken across the United States to limit the insurance industry’s ability to recover from utilities (and the lobbying efforts from U.S.-based carriers to defeat said legislation), evaluate the legislation’s enforceability, assess the impact of this legislation on property insurance in wildfire-prone states, suggest actions the industry can take to preserve its rights, and propose practical alternatives that balances the public’s need for electricity with the need to hold the utility responsible for the damages it caused and keep insurance affordable.

Presented by Joel Radokovich and Meghan Rodda.