The National Association of Mutual Insurance Companies (NAMIC) announced that Missouri enacted Senate Bill 116, limiting noneconomic damages to $500,000 in civil cases against construction professionals for injuries or death from construction defects.
According to NAMIC, this legislation applies to claims involving architects, engineers, contractors, and subcontractors. The law aims to address liability concerns within the construction sector and is part of the organization’s state legislative tracking update.
Missouri’s new law offers construction professionals greater predictability regarding liability exposure for noneconomic damages in defect-related claims. This cap aligns with efforts within the state to manage litigation costs that impact insurance availability and premiums for builders and developers. Missouri joins other states that have implemented similar damage limitations to support the construction industry and housing development.
The U.S. tort system’s costs reached $529 billion in 2022, equating to more than $4,200 per household. These expenses represent about 2 percent of the gross domestic product and have grown at an average annual rate of 7.1 percent from 2016 to 2022, outpacing inflation. The U.S. Chamber Institute for Legal Reform analysis highlights how uncapped noneconomic damages contribute to these rising costs affecting businesses and consumers nationwide.
NAMIC serves as a trade association representing mutual property and casualty insurance companies across the United States. It advocates for policies promoting stable insurance markets, fair liability frameworks, and reasonable limits on damages while monitoring state and federal legislation impacting the insurance industry.
