NFIB State Director Leah Long says small business owners are urging lawmakers to vote “yes” on House Bill 526, legislation that would help limit rising insurance costs by placing reasonable caps on certain lawsuit damages.

“Even one frivolous lawsuit can be devastating for a small business,” Long said. “The cost of defending or settling a claim can drive up insurance premiums or force a business to close its doors. House Bill 526 would bring more predictability to the legal system and help stabilize insurance rates for small employers.”

The bill is pending in the House Committee on Civil Law and Procedure.

House Bill 526 would set a $500,000 cap on general damages in most injury lawsuits, regardless of how many parties are named in the case. It would allow up to $1 million in cases involving severe, permanent mental injury that limits a person’s ability to work or live independently.

The caps would not apply in cases involving severe physical injuries, such as loss of a limb or major organ function, or when a court finds the defendant acted intentionally or maliciously.

“Current law allows unlimited general damages, which contributes to higher insurance costs,” Long said. “By setting reasonable limits, lawmakers can help attract more insurers to the market and bring down costs for small businesses.”