A report from the Colorado Chamber of Commerce and the American Property Casualty Insurance Association estimates a proposal to remove the noneconomic damage caps in Colorado would result in a $2.1 billion annual loss in state GDP and 15,500 jobs.
Separate from economic damages, noneconomic damage caps are the portion of damages awarded in civil cases that attempt to compensate for an injured person’s emotional distress and suffering related to an accident.
Removing noneconomic damage caps has recently been the focus of several ballot initiatives and legislative proposals in Colorado.
“Efforts to remove noneconomic damage caps would directly impact our competitiveness as a state, making us an even more expensive place to live and do business,” Colorado Chamber President and CEO Loren Furman said in a statement. “This $2.1 billion cost would be felt by everyone, from increased prices of goods and services to reduced business activity. We will continue to oppose measures that threaten our economic climate and the livelihoods of Coloradans.”
The economic and fiscal losses in the report represent a reduction in economic output due to what the groups say would amount to excessive civil justice costs of $357 per person and $921 per household. In addition, the reduction in business activity would result in a loss of tax revenue to the tune of $101.9 million for the state and $78.3 million to local governments, according to the report, which was prepared by the Perryman Group.
Topics Profit Loss
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