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The burden on small businesses

Every four years or so the National Federation of Independent Business conducts a nationwide survey of thousands of small business owners asking them to rank the seriousness of public policy problems for their businesses. This year the cost and availability of liability insurance vaulted into second place in the survey, behind health costs, with 30 percent of respondents assessing it as "critical". (NFIB release/KSSmallBiz.com/survey in PDF format/more from NFIB)

This summer the U.S. Chamber of Commerce released a survey estimating the total liability cost to small businesses (those with <$10 million in annual revenue) at more than $88 billion a year. ((San Jose Business Journal/survey in PDF format). Per one account of the study, "U.S. small businesses pay up to 68 percent of all tort liability costs borne by business, even though they bring in only 25 percent of the nation�s total business revenue" (Business Council of New York State). ATLA rants and rails against the Chamber survey here.



Rafael Mangual
Project Manager,
Legal Policy

Manhattan Institute


Published by the Manhattan Institute

The Manhattan Insitute's Center for Legal Policy.