Tort Costs Reach $655.6 Billion, Study Finds

A U.S. Chamber of Commerce Institute for Legal Reform study estimates the nation's tort system costs grew 7.8% annually since 2019.

Updated on Nov. 6, 2026 in Criminal Justice

Tort Costs Reach $655.6 Billion, Study Finds

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The U.S. Chamber of Commerce Institute for Legal Reform released a study estimating tort system costs reached $655.6 billion in 2025. The fourth edition of the study, prepared by The Brattle Group, was published November 5.

Why it matters

The estimates include both costs and compensation paid through the tort system, and the costs ultimately affect consumers through insurance premiums and the prices of health care, goods and services. Tort costs grew at twice the rate of inflation over the period studied.

The study estimates tort costs at 2.12% of GDP, with growth averaging 7.8% annually since 2019, twice the rate of inflation. Estimates vary sharply by state, from $2,569 per household in West Virginia to $7,814 in Delaware.

The players

U.S. Chamber of Commerce Institute for Legal Reform

The Institute for Legal Reform is the U.S. Chamber of Commerce's affiliate that advocates for civil justice reform and publishes tort cost research.

The Brattle Group

The Brattle Group is a economic consulting firm that prepared the fourth edition of the tort cost study.

The details

The study covers the full tort system, including both costs and compensation. State estimates show Delaware with the highest per-household figure and California with the largest total, about $81.9 billion. Florida's tort costs fell from 3.35% to 3.11% of its economy after 2023 civil justice reforms.

2019: Tort costs begin the period of 7.8% average annual growth.
2023: Florida enacts civil justice reforms.
2025: Tort costs are estimated at $655.6 billion.
November 5, 2026: The Institute for Legal Reform releases the study.

Criminal Justice Context

The fourth edition of the Institute for Legal Reform's tort cost study updates the series' estimates, which track the national civil liability system over time. Florida's 2023 civil justice reforms provide a state-level example of cost change after legislative action.

Tort system costs are passed on to consumers through insurance premiums and the prices of health care, goods and services. Households across the country bear these costs, with estimates ranging from about $2,569 to $7,814 per household depending on the state.

The takeaway

Tort costs are a recurring expense embedded in everyday prices and premiums, so tracking state-level changes such as Florida's post-reform decline can help readers gauge how policy affects their own costs.