Lloyd's chairman Lord Levene said compensation culture is causing serious harm to industries that support economic and social progress.
Making his comments at the Town Hall Los Angeles, Levene announced the results of a joint Lloyd's/Town Hall Los Angeles survey.
The survey of Los Angeles business leaders showed 95% of respondents believed the cost of litigation to be a drain on the economy, and that 94% were concerned about the potential impact of liability costs on their own business or industry.
Levene said: "My point is that today's culture is a brake on enterprise and innovation." He added: "The fear of being sued is making everyone more and more cautious - to the detriment of everyone. This new culture does more than simply sap the will of the risk taker. It corrodes the economy."
Lord Levene also called for an end to the US requirement for Lloyd's to hold collateral to cover 100% of gross liabilities in the US in trust funds. He said this requirement was a trade barrier which harmed policyholders by limiting choice and increasing costs.
He said: "How does it help the American entrepreneur, who is looking for insurance to cover a new business, if Lloyd's and other reputable foreign companies are not competing on a level playing field?"
