Colorado’s recently enacted legislation (HB 24-1472), which significantly increases damages caps for tort actions, is now in effect. Given the legislation’s January 1, 2025, effective date, an early-2025 increase in new filings is anticipated for cases that otherwise could have been filed in 2024.
The increases include:
- For noneconomic damages in tort actions (other than against medical professionals), more than double the previous cap to $1.5 million (with future inflation adjustment).[1]
- In wrongful death actions (other than against medical professionals), a greater than threefold increase from the previous limit to $2.125 million (with future inflation adjustment).[2]
- In medical professional actions for wrongful death, a 50% increase from the previous overall cap to $1.575 million in 2029 (with future inflation adjustment). For injury claims, more than double the previous cap for noneconomic damages to $875,000 in 2029 (with future inflation adjustment).[3]
The legislation substantially revises tort reform caps adopted nearly 40 years ago in response to concerns about insurance cost and availability, particularly for medical professionals.
In addition to an increase in litigation, the legislation will likely lead to insureds’ re-evaluation of policy limits in light of the increased caps. The legislation will also likely have various economic impacts, including on pricing, consumer costs, and insurance premiums.
Read the full details of the recent legislation, or learn more about the Colorado team at Gordon Rees Scully Mansukhani, including Marilyn Chappell or Megan Jones, who can assist with any questions regarding these changes.
[1] HB 24-1472, §2, amending C.R.S. § 13-21-102.5(3)(a)(II).
[2] Id., § 4, amending C.R.S. § 13-21-203(1)(a).
[3] Id., § 4, amending C.R.S. § 13-21-203(1)(b); id., § 6, amending C.R.S. § 13-64-302(1)(c).