APCIA vice president: Removing damage caps would mean a '$2.1 billion hit to our state economy'

Lyn Elliott, vice president for state government relations at the American Property Casualty Insurance Association (APCIA), expressed concerns over the potential economic impact of removing damage caps in Colorado. She said that such a move would increase costs and result in job losses.

"Removing the caps on noneconomic damages would have been a $2.1 billion hit to our state economy," said Elliott. "That would have been felt by businesses and consumers alike in the form of increased prices for goods and services, higher insurance rates, and lost jobs. This deal strikes the balance needed to prevent further deterioration of our legal and fiscal environment."

According to a press release from the Colorado Chamber, a legislative compromise led to the withdrawal of several ballot initiatives aimed at eliminating noneconomic damage and wrongful death caps. These initiatives could have cost the state $2.1 billion annually and 15,500 jobs. Under House Bill 1472, noneconomic damage caps will be raised to $1.5 million for general liability and $875,000 for medical malpractice, with future adjustments for inflation.

In its 2025 session, the Colorado legislature introduced 45 bills expanding private rights to sue—26 of which passed. This continues a trend of increasing legal exposure for businesses and employers. Among these is House Bill 1239, which significantly increases damages under the Colorado Anti-Discrimination Act. This bill encourages more lawsuits related to accessibility claims by allowing up to $150,000 per visit. House Bill 1001 expands wage claim liability and adds emotional damages while narrowing employers' ability to recover legal fees, creating what opponents describe as a windfall for labor attorneys. Senate Bill 157 would have facilitated adding consumer protection claims to lawsuits but was defeated by a bipartisan coalition.

According to a report from the U.S. Chamber’s Institute for Legal Reform, lawsuit costs in the U.S. tort system are rising sharply, reaching $529 billion in 2022—equivalent to 2.1% of national GDP and $4,207 per household. The average annual growth rate of tort costs has been 7.1% since 2016 and is projected to exceed $900 billion by 2030. In Colorado alone, tort costs total over $9.4 billion or 1.9% of the state's GDP.

Uber has warned it may cease operations in Colorado if House Bill 1291 becomes law due to what it describes as unworkable mandates threatening its ability to operate in the state. The bill aims to improve rideshare safety through requirements such as twice-yearly background checks and mandatory investigation of driver complaints but raises concerns about privacy and logistical issues according to Uber.

Elliott brings nearly two decades of experience in public affairs and legislative advocacy across business and insurance sectors as Vice President of State Government Relations at APCIA.