Mike O’Donnell, an economist and former candidate for Colorado Secretary of State, has commented on the state’s continued ranking as a “Lawsuit Inferno,” attributing it to liability-expanding legislation that he says is driving up insurance premiums. This statement was made on the social media platform X.
“The American Tort Reform Association named Colorado a “Lawsuit Inferno” for the second consecutive year in its latest Legislative HeatCheck report after state lawmakers pursued dozens of liability-expanding bills,” said O’Donnell.
Colorado was designated a “Lawsuit Inferno” in 2025 by the American Tort Reform Association (ATRA), which cited 45 bills expanding liability or creating new private rights of action, with more than half becoming law. ATRA argues this trend increases business costs and undermines the state’s civil justice balance, using the label to call for legislative reform. According to ATRA’s Legislative HeatCheck report, Colorado received this designation for the second consecutive year.
Litigation trends in Colorado have contributed to rising insurance premiums, particularly in casualty and commercial auto coverage. McGriff’s Q4 2024 Market Update indicates that large jury verdicts, “social inflation,” and reduced umbrella capacity are driving higher costs for businesses across the state. These litigation pressures remain a primary factor behind premium escalation.
States like Colorado and New York rank among the most aggressive in expanding liability, while others have enacted reforms to limit exposure. These differences have contributed to varying insurance costs. The National Association of Insurance Commissioners (NAIC) reported a 14.41% increase in average personal auto premiums nationally in 2023, but with wide state-by-state variation. According to ATRA and NAIC, such divergence highlights the cost burden of liability-expanding legislation.
O’Donnell is a Colorado economist focused on entrepreneurship and state economic policy, providing real-time analysis of trends and legislative impacts. He has a background in education and economic development and shares charts and commentary on Colorado’s economy through his “Moments with Mike” platform. According to his Patreon biography, O’Donnell highlights the policy challenges shaping the state’s business environment.
The American Tort Reform Association (ATRA), founded in 1986, advocates for reforming civil justice systems to reduce lawsuit abuse and restore balance in liability law. Its Legislative HeatCheck report tracks states expanding or restraining liability, informing debates about competitiveness and business climate. According to ATRA’s organizational page, it pursues its mission through research, public education, and legislative advocacy.
