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Opinion: Jim Kallinger, Chairman of the Small Business and Consumer Alliance and former State Representative.

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According to several independent reports, Florida is either the leading economy in the country or one of the top 3 state economies in the country.  Despite the fact that there has been some uncertainty over tariff policy, inflation, and interest rates, there is still no better place to own and grow a business than in Florida.   

There is one main reason why our state has achieved this strong reputation: government stays out of our business.  Nevertheless, there are still some areas where we need more reform and more action. Shipments are slow because of jam-packed roadways, and burdensome property taxes and sky-high property insurance costs drag on our bank accounts and create worries where none should exist.

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The good news is that since the Florida Legislature passed monumental lawsuit reform measures in 2023, our state insurance market has finally started to cool off a little bit, and some policyholders are even beginning to see rates drop. Also, with more insurance companies making their way back into the Florida marketplace, the increase in competition should help further reduce rates for everyone.

The legislature did not dip into taxpayer coffers to fund or support these insurance companies to fix the crisis in Florida’s insurance market; all they did was pass reforms that would restore some common sense to our judicial system to stop the frivolous lawsuits that were clogging our courts and holding our small businesses hostage.

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Although we are excited to see that the lawsuit reform measures of 2023 are starting to work, additional efforts still need to be made, and the legislature must fight back against those who want these reforms reversed. It would be disastrous to go backward!

A critical area of concern is third-party litigation financing. This is what happens when big hedge funds come in and pay for plaintiff action against various organizations so that they can get a cut of the settlement or verdict. It’s not about seeking justice; it’s about getting a payday.

With these outside funders, the number of large settlements and nuclear verdicts—jury awards exceeding $10 million—have climbed, which in turn leaves insurers with no other choice but to increase their rates, thereby putting a strain on all policyholders.

Additionally, we must advocate for reforms related to negligent security claims, ensuring that small businesses are not held responsible for criminal acts. Negligent security claims are frequently used to connect a business owner to a claim for damages based on the rationale that they could have done something to prevent criminal activity. Criminals must take responsibility for their own crimes, not the property owners where a crime is said to have been committed.

Addressing both of these issues would go a long way toward curbing frivolous lawsuits that slow down our court system and inflate insurance rates for Floridians.

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