New Report: Tort Lawsuit Costs Hit More Than $4,900 Per American Household

WASHINGTON - A new study released today by the U.S. Chamber of Commerce Institute for Legal Reform finds that the tort lawsuit system costs now amount to more than $4,900 per American household a year, a hidden cost that ultimately shows up in insurance premiums, health care, goods, and services.

The new Tort Costs in America study estimates that total U.S. tort costs reached $655.6 billion in 2025, or 2.12% of GDP. Since 2019, those costs have grown 7.8% annually, faster than the economy and twice the pace of inflation.

"Americans are already struggling with the cost of insurance, health care, housing, and everyday necessities. Now we know the tort lawsuit system is imposing another hidden cost of more than $4,900 per household," said Stephen Waguespack, President of the U.S. Chamber Institute for Legal Reform. "That is money families could be saving or spending on things they actually need. Instead, they are paying the price for a legal system that too often rewards excessive and frivolous litigation. Billboard lawyers sue. We all pay."

The report also provides important lessons that states can positively impact their hidden lawsuit burden through reforms. For example, following Florida's landmark 2023 civil justice reforms-the impacts of which are just starting to be felt-tort costs declined as a share of the state's economy from 3.35% to 3.11%, and Florida improved by moving down four spots on the list of state tort costs per household. While total dollar costs continued to rise nationally, Florida's relative improvement suggests that policy choices can make a difference.

The full report is available here: Tort Costs in America.

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About the U.S. Chamber of Commerce Institute for Legal Reform

The U.S. Chamber of Commerce Institute for Legal Reform (ILR) is the country's most influential and successful advocate for civil justice reform, both in the U.S. and abroad.