Florida’s excessive tort costs, referred to as the “tort tax,” are resulting in a $1.2 billion annual revenue loss, according to a report from The Perryman Group. The report, released on November 25, 2024, outlines the broader impact on federal, state, and local government funds.

The report states that Florida’s annual “tort tax” leads to $5.2 billion in federal revenue losses, or $1,238 per resident, and $1.2 billion in local government revenue losses. In the transportation and warehousing sector, the impact includes $14.3 billion in total expenditures, $9.2 billion in lost gross product, $6.1 billion in reduced personal income, and 67,100 job losses each year.

According to CRC Group, Florida is recognized as a litigation hotspot due to its high frequency of nuclear verdicts. This includes a record $1 billion judgment in 2021 against two trucking companies. CRC Group indicates that this trend is driven by third-party litigation funding (TPLF), leading to rising insurance premiums and reduced coverage options.