Indianapolis, Indiana – As Indiana lawmakers begin laying the groundwork for the 2026 legislative session, business leaders are urging a broader view of an issue often confined to courtrooms and legal briefs. Tort reform, they argue, is not just about the justice system. It is a key factor in economic development and a growing concern for employers deciding where and how to invest.
For many Indiana businesses, especially small companies and startups, the state’s legal climate has real financial consequences. Unpredictable or excessive litigation can quickly drain resources that would otherwise be used to hire workers, develop new products, or expand operations. Instead of fueling growth, businesses may find themselves diverting time and capital toward legal defense and higher insurance premiums.
The pressure does not ease as companies grow. For firms looking to scale, rising liability exposure and insurance costs can slow momentum and make expansion riskier. In some cases, it can discourage businesses from entering new markets or investing in innovative ideas. These challenges ripple outward, affecting job creation and local economies across the state.
From an economic development perspective, Indiana’s legal environment also plays a major role in how outsiders view the state. Site selectors and investors regularly weigh tort laws alongside taxes, workforce availability, and infrastructure when choosing where to deploy capital. A reputation for fairness and predictability can be a deciding factor in attracting high-growth companies and long-term investment.
Indiana has historically benefited from being seen as a balanced, business-friendly state—one that protects legitimate claims while discouraging abusive litigation practices. Business advocates say maintaining that reputation is critical, particularly as competition among states intensifies. With other regions actively courting innovation-driven industries, even small shifts in legal uncertainty can influence where companies choose to locate.
Supporters of tort reform emphasize that the issue does not fall neatly along party lines. Instead, it is widely viewed as a nonpartisan concern tied to economic stability and growth. A fair and predictable legal framework can serve as common ground for lawmakers with different perspectives who share an interest in strengthening Indiana’s economy and restoring a spirit of collaboration at the Statehouse.
The focus, they say, should be on smart reform rather than sweeping limitations. The goal is not to block legitimate claims, but to ensure a level playing field, reduce uncertainty, and protect employers who operate responsibly. Clear standards and reasonable boundaries help businesses plan for the future with greater confidence.
Looking ahead to 2026 and beyond, the Indiana Chamber believes tort reform should remain part of a larger competitiveness strategy. Aligning legal policy with long-term goals for entrepreneurship, innovation, and shared prosperity, advocates argue, will help Indiana remain an attractive place to do business in an increasingly competitive national landscape.
