This cost is made up of a combination of direct costs -
money taken from the pockets of producers, and put into the pockets of leeches lawyers;
and indirect costs, non-productive actions people take to protect against the chance of baseless lawsuits, like unnecessary extra diagnostic procedures in a doctor's office.
Does that figure include the costs of liability insurance, such as property, auto and malpractice insurance? If so it may be overstating things a bit.