Report says liability reform would benefit New York

ALBANY, N.Y. – A new report says liability reform would improve New York’s competitiveness with other states in terms of creating business and jobs as well as lower costs.

The report, titled New York at the Crossroads: Will It Modernize Liability Law or Expand It?, was released June 30 by the Empire Center for Public Policy.

As New York continues to face an affordability crisis and an ongoing exodus of businesses and residents, the Empire Center says, “New York’s liability laws are badly out of step with most other states, imposing excessive costs that reverberate throughout the state’s economy.”

According to the report, New York’s legal climate exposes residents and businesses to greater liability than most other states and outlines a roadmap for bringing the Empire State more in line with the national mainstream. It says the current system contributes to higher insurance premiums, makes healthcare more expensive, drives up the cost of housing and infrastructure projects and increases the price of everyday goods and services.

New York families bear the second-highest tort costs in the nation at more than $7,000 per household annually.

The Empire Center says modernizing the state’s liability laws could help lower costs and strengthen New York’s ability to compete with states such as Texas and Florida for business creation, workers and investment.

“New Yorkers pay a steep price for the state's costly liability environment,” Empire Center President and CEO Zilvinas Silenas said. “As this report shows, expansive liability laws act as a hidden tax on businesses and every household in the state.

“If Albany is serious about improving affordability, strengthening the economy and keeping the state competitive, liability reform must remain part of the conversation.”

The report’s release follows a slate of auto liability reforms and anti-fraud measures advanced by Gov. Kathy Hochul in the recently concluded 2026 New York State Legislative Session. Policymakers should expand on those efforts and avoid going in the wrong direction, the report contends.

“The reforms advanced by Gov. Hochul were an important first step toward restoring balance to New York’s civil justice system and lowering costs for New Yorkers,” said Cary Silverman, the report’s author and partner in Shook, Hardy & Bacon’s Public Policy Group. “But this year’s reforms addressed only part of the problem.

“Policymakers should seize the opportunity to bring New York's liability laws more in line with the rest of the country. Doing so would reduce lawsuit abuse, discourage fraud, and make life more affordable – ensuring that the Empire State remains an attractive place to build a business, create jobs, and raise a family.”

Tom Stebbins, Executive Director of the Lawsuit Reform Alliance of New York, agreed.

“The Empire State is well known as the lawsuit capital of the world, and every New Yorker pays the price for our laws that incentivize profiteering and fraudulent claims,” he said. “Gov. Hochul made liability reform a priority this year. Albany should finish the job by building on those reforms and making New York more affordable.”