Lawsuit risks are on the rise for businesses. These companies are bearing the brunt of the costs.

The Business Journal, December 19, 2023

Here’s what happened: A study from the U.S. Chamber of Commerce revealed the liability cost of lawsuits against businesses in 2021 reached $347 billion, with small businesses disproportionately bearing nearly half of that cost ($160 billion) despite making up just 20% of total revenue.
In their own words: “The U.S. lawsuit system is disproportionately stacked against small businesses that already have enough to worry about. Every dollar that small businesses pay into the tort system is a dollar that doesn’t go to hiring, expanding or making new products.” –Harold Kim, President, U.S. Chamber of Commerce Institute for Legal Reform
TLR Thoughts: We know the proliferation of unnecessary lawsuits increases expenses for businesses and has a ripple effect on consumers and the economy through the Tort Tax. These escalating costs create a strain on businesses, suppressing job creation and business expansion.

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