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International Comparisons of Litigation Costs: Europe, the United States and Canada

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International Comparisons of Litigation Costs: Europe, the United States and Canada by David L. McKnight and Paul J. Hinton, May 2013

  • “The purpose of this study is to compare liability costs – a phrase used here to describe the costs of claims, whether resolved through litigation or other claims resolution processes – as a fraction of GDP across Europe, the U.S. and Canada. General liability insurance sold to companies provides a basis for comparison because it covers similar types of liability costs in each country. We separate out any cost differences due to the mix of business, spending on government social programs, and private health care costs in each country. By controlling for non-litigation-related factors, we have developed internationally comparable estimates of liability costs that reveal how much more expensive the most costly countries’ legal environments are than the rest.”
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