Recently, Georgia took a major step toward fairness in its judicial system with the introduction and passage of comprehensive tort reform legislation. Spearheaded by Governor Brian Kemp, this reform targets the runaway litigation costs and excessive jury awards that have driven insurance premiums to unsustainable levels. By curbing lawsuit abuse and reducing legal uncertainty, these reforms are poised to create a more stable and predictable environment for insurers (and self-insured businesses), businesses, and policyholders alike.

Key Provisions of Georgia’s Tort Reform

The reform package—Senate Bill 68 and Senate Bill 69—introduces several long-overdue protections for insurance carriers and businesses. As of March 30, 2025, SB 68 has passed both the Georgia House and Senate and is awaiting the Governor's signature, where it is all but guaranteed to be signed into law.

Highlights of the new legislation include:

• Curbing Double Recovery of Attorney Fees: Previously, plaintiffs' attorneys could inflate legal costs by recovering attorney fees multiple times. The reform closes this loophole, helping control excessive litigation expenses.
• Regulating Third-Party Litigation Funding: With increased transparency in foreign-backed litigation financing, insurers gain more control over claims costs and case valuation. SB 69 requires any person or entity engaging in litigation financing in Georgia to register as a litigation financier. It also limits the relationships between financiers and plaintiffs, their attorneys, and expert witnesses. Financiers may also be held jointly and severally liable for attorney’s fees, damages, or sanctions against a plaintiff.
• Admissibility of Collateral Source Payments: SB 68 permits introduction of evidence showing how much a plaintiff’s health insurance paid toward medical bills. This undercuts the prior collateral source bar and can reduce inflated damages claims.
• Limiting Anchoring of Non-Economic Damages: Attorneys can no longer suggest arbitrary dollar amounts for non-economic damages like pain and suffering. This change helps ensure juries are not improperly influenced when awarding damages.
• Bifurcation of Trials: SB 68 allows for splitting trials into two stages: first, determining liability and apportioning fault; and second, assessing total damages. This makes the process more orderly and fair but not allowing a jury’s emotions overrule liability defenses.
• Seatbelt Defense: A plaintiff’s failure to wear a seatbelt is now admissible in civil trials and may be considered in determining negligence, comparative fault, causation, and damages.
• Restriction on Voluntary Dismissals: Plaintiffs may no longer unilaterally dismiss a lawsuit after a defendant has filed an answer or motion for summary judgment. A dismissal now requires all parties’ consent, like in federal courts.
• Negligent Security Claims: SB 68 also addresses standards and limitations for holding property owners liable in negligent security cases, an area of frequent litigation.

How This Benefits Insurance Companies

For years, Georgia has ranked among the worst legal climates for businesses and insurers, with soaring litigation costs driving one of the highest auto insurance rate increases in the nation—a 21% jump in 2024 alone. By reining in lawsuit abuse, this reform is expected to:

• Reduce claims costs – With tighter standards on liability and damage awards, insurers can better control payouts and predict risk exposure.
• Stabilize premiums – Lower claims costs mean insurers can pass savings to policyholders, resulting in more competitive rates.
• Deter frivolous lawsuits – By making it harder for plaintiffs' attorneys to exploit the system, insurers can avoid unnecessary settlements and focus on genuine claims.
• Encourage business growth – With lower liability risks, Georgia becomes a more attractive place for businesses to expand, increasing policy demand and market stability.

A Step Toward a More Balanced Legal System

Governor Kemp and business leaders have praised the reforms as critical to economic stability. Major insurers, self-insured trucking companies, and risk retention groups have long advocated for tort reform to rein in excessive litigation—and this legislation finally delivers.

While trial lawyers and some consumer advocates argue that the changes limit access to justice, the reality is that a fair and predictable legal system benefits everyone. By discouraging nuclear verdicts and lawsuit abuse, Georgia is ensuring that legitimate claims are resolved efficiently while protecting businesses and insurers from undue financial strain.

The Road Ahead

With SB 68 now passed by the Georgia General Assembly and awaiting the Governor's signature, the insurance industry is optimistic about the long-term impact of these reforms. Insurers operating in Georgia should prepare for a shift toward a more business-friendly claims environment and explore how these changes will affect litigation strategies and risk assessments.

This tort reform is a game-changer for insurers, paving the way for lower claims exposure, reduced litigation costs, and a more sustainable insurance market in Georgia.

For more information, please contact:

Foss Baker
Quintairos, Prieto, Wood & Boyer, PA
365 Northridge Road, Suite 230
Atlanta, Georgia 30350
Foss.baker@qpwblaw.com