A high-low agreement fixes a floor the plaintiff receives even on a defense verdict and a ceiling the defendant pays even on a large plaintiff verdict. Verdicts within the range are paid as rendered.
The agreement is usually confidential from the jury and may be reached before trial, during trial, or while a verdict is pending.
Alternative Names:
High-Low, Floor and Ceiling Agreement
Why it Matters?
High-lows are the practical tool for cases with genuine liability risk and dangerous damages exposure, particularly in venues with nuclear verdict potential. They convert an unbounded outcome into a defined range, which can make trying a case rational when the alternative was overpaying to avoid tail risk. They also require careful coordination with excess carriers, since the ceiling determines whether the excess layer is exposed.
Frequently Confused with
Related terms
Frequently asked questions
Does the jury learn about a high-low agreement?
When is a high-low most useful?
