Get the Facts

The Truth About Legal System Abuse, and How States Like Florida Are Fighting Back


Legal System Abuse Is Costing Americans Big Time

America’s legal system is being misused in ways that hurt consumers, businesses, and the broader economy.

$529 Billion

How much legal system abuse costs the U.S. economy each year. That’s equivalent to 2.1% of U.S. GDP.

$4,200/family

How much the average American family household pays annually in hidden tort-related costs.

rising 7.1% per year

Tort costs are rising 7.1% per year, far outpacing economic inflation (3.4%).

The Bottom Line

When the legal system is abused, policyholders pay more, businesses pull back on risk, and insurance becomes harder to find and afford.

Unchecked Litigation = Higher Insurance Costs

Legal system abuse isn’t just a courtroom problem, it’s an insurance crisis.

  • Inflated claims and excessive litigation drive up payouts and operating costs.

  • That makes it harder for insurers to stay in high-risk markets—or enter new ones.

  • Consumers and businesses are left with fewer options, higher premiums, and less coverage.


Florida Shows What Real Reform Looks Like

Florida’s 2021–2023 tort reform package under Governor Ron DeSantis proves that bold, commonsense reform works.

 Reduced Frivolous Suits

  • In just one year, lawsuits filed against insurers dropped 23.8%: from 36,639 to 27,923 (Q1–Q3 comparison, 2023–2024).

Improved Insurance Market Stability

  • Insurer insolvencies halted in 2024 after years of turbulence.

  • Major insurers have re-entered Florida’s homeowners and property markets.

  • The industry posted its first profits since 2016: a direct result of litigation reform.

Economic Growth & Job Creation

  • According to The Perryman Group:

    • $10 billion/year in cost reductions

    • $15.5 billion/year in additional economic output

    • 161,700 new jobs

    • Hundreds of millions in new state and local tax revenue

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