Our Analysis
What is Georgia tort reform?
- Georgia tort law is defined as unlawful civil wrongs that result in harm or loss to individuals. It focuses on compensating victims through civil lawsuits, rather than punishing offenders. Some examples include personal injury and property damage.
- The most significant reform was 20 years ago in a bill that put a $350,000 cap on non-economic damage awards in medical malpractice and product liability lawsuits. The Georgia Supreme Court removed the cap in 2010. Calls for tort reform in Georgia have been pursued every year since then without success.
Why is tort reform important?
According to the Data Analysis for Tort Reform Act prepared by the Office of Commissioner of Insurance and Safety Fire on November 1, 2024, “The frequency, severity, and legal involvement in claims in Georgia are all rising at a rapid rate. Private passenger Auto Liability constitutes a majority of claims and paid indemnity, with the latter being highly driven by bodily injury. Claims are generally shifting towards full-limit losses, with a plurality of legal claims resulting in these high-payouts. Unsurprisingly, legal claims represent a majority of paid indemnity, which has been further exacerbated by increasing legal involvement in claims.”
What is the insurance industry’s perspective on tort reform in Georgia?
According to the article Georgia’s Civil Lawsuit Reform: Balancing Business Interests and Legal Rights in Insurance Debate, published by Farmonaut on January 14, 2025:
- High-value verdicts and frequent lawsuits force insurance companies to raise premiums to remain solvent.
- Some insurers have cited the legal environment as a reason for leaving the Georgia market, reducing competition and potentially driving up costs.
- The industry supports reforms, claiming they could lead to more stable and affordable insurance rates for businesses and individuals.
Our Actionable Advice
In summary, there is a significant increase in the frequency and severity of claims in Georgia resulting in expensive lawsuits. This leads to a spik in insurance costs and premiums. Georgia tort reform may be one way to help decrease these costs.
The Whitlock Group is your trusted advisor on insurance matters. We regularly monitor insurance trends that impact our clients. We will continue to track this important issue and keep you updated on the status.
The Big Takeaway
If you have questions about your business, home or auto insurance, please contact Greg at 678-906-2008 or send him an email.
The Whitlock Group is a Property & Casualty Insurance Agency. This blog is intended for informational purposes only and is not intended as legal advice nor does it reflect any particular political party.