Nancy Hoffman Vanyek, President and CEO of the Greater San Fernando Valley Chamber of Commerce, has expressed concerns over lawsuit-driven costs that are pushing liability insurance premiums higher for small businesses. These increased costs ultimately lead to higher prices for consumers. Vanyek’s statement was made in an op-ed.
“Small business owners see the ripple effects, too,” said Hoffman Vanyek. “Many report liability insurance premiums climbing 40 to 50% in just the past year. They are paying for a legal system tilted toward excess. When their costs go up, they have little choice but to raise prices, pushing the burden onto consumers.”
According to the Insurance Information Institute, lawsuit activity in California is adding pressure to insurance and consumer costs. Attorney advertising and third-party litigation funding are expanding claims and raising loss severity, which translates into higher premiums for households and small businesses. The Council of Insurance Agents & Brokers reports that this litigation environment is a key factor driving sustained rate increases across casualty and liability lines.
The Council of Insurance Agents & Brokers noted that commercial liability premiums in California rose an average of 11.5% in the second quarter of 2025, reflecting continued legal cost pressures. The San Francisco Chronicle reported that State Farm filed for a 39% increase to its California Personal Liability Umbrella program. These increases illustrate how legal costs are directly inflating small-business and personal insurance rates statewide.
The U.S. Chamber Institute for Legal Reform’s 2024 Tort Costs in America report found California’s per-household tort cost at $5,429 in 2022—higher than Texas ($4,594) and Illinois ($4,281). The study notes that national tort costs have outpaced inflation since 2016, indicating that California’s litigation burden continues to exceed most large states and contributes to higher consumer and business expenses.
Vanyek serves as President and CEO of the Greater San Fernando Valley Chamber of Commerce; according to the Los Angeles Business Journal, she has held the role since 1993 after joining in 1987 and was the chamber’s first female leader. Her advocacy focuses on workforce development, small-business competitiveness, and affordability reforms across the Valley.
The Greater San Fernando Valley Chamber of Commerce was founded in 1911 with a mission to promote regional economic growth through business development, education, and government advocacy. According to the chamber, it represents the Valley’s largest business network, prioritizing policy issues such as taxes, workers’ compensation, and affordability for small employers.
