On April 22, Georgia Gov. Brian Kemp signed historic legislation, delivering meaningful tort reform and what some hope will be a lifeline for small businesses throughout the state. 

For too long, small businesses in Georgia have been struggling to keep their doors open under the weight of frivolous lawsuits. The issue threatened the livelihoods of many main street businesses by driving up insurance premiums and diverting vital resources away from growth and innovation. 

The issue came to a head in November 2024, when the Georgia Office of the Commissioner of Insurance and Fire Safety issued a report summarizing its findings concerning the state of the casualty insurance market and included proposed reforms.

According to their report, the five-year average claim count increased by over 24% between 2014-18 and 2019-23. The report showed a steady increase in policy limits claims and losses that exceeded $1 million. The rising frequency of claims and severity was only further amplified by the legal landscape in Georgia, which was ranked as the fourth worst jurisdiction in the country according to the American Tort Reform Foundation (ATRF). 

A statement from the ATRF expounded on the issue, saying, “Georgia’s civil justice system is plagued by skyrocketing nuclear verdicts, inflated awards for medical costs, expansive premises liability and laws that set up defendants to fail, creating endless liability.” They went on to say that the “lawsuit abuse and excessive tort costs wipe out billions of dollars in economic activity annually.” To that point, a study conducted by the Perryman Group noted that Georgia citizens each pay a “tort tax” of $1,372.94 in higher product prices, reduced economic activity and the 137,658 jobs that are lost each year because of abusive tort litigation. 

On Jan. 30, 2025, Gov. Kemp, along with Lt. Gov. Burt Jones, Speaker Jon Burns, Commissioner John King and leaders from industries across the state unveiled a tort reform package. The package aimed to level the playing field in courtrooms, ban hostile foreign powers from taking advantage of consumers and legal proceedings, stabilize insurance costs for businesses and consumers, and increase transparency and fairness. 

SB 68, referred to as the “Act,” was sponsored by 25 senators and directly addressed the rising tide of lawsuit abuse that has negatively impacted Georgia’s small business owners. Efforts were met with opposition from trial lawyers and consumer advocates who were pitted against businesses and insurance advocacy groups. Proponents argued that this new law offers critical protections that will make Georgia a more affordable and competitive place to do business. 

The Georgia Chamber of Commerce commented, “SB 68 will curb lawsuit abuse while protecting families, small businesses, the medical community and Georgia’s economic competitiveness. For the past 20 years, securing tort reform has been the top legislative priority of the Georgia Chamber. The House passage of SB 68 takes us to the brink of finally delivering meaningful tort reform for Georgia.”

At the signing ceremony, Gov. Kemp stated, “SB 68 and 69 put job creators and hardworking Georgians first by leveling the playing field in our courtrooms and ensuring Georgia remains the best place to live, work and raise a family. Today, I’m proud to sign these bills into law!” 

The new legislation limits owners’ liability for injuries that occur on their property and restricts damages for medical bills, along with allowing juries to determine liability and damages separately. More specifically, here are some key parts: 

Pain and Suffering: Lawyers can’t tell the jury exactly how much money they think someone should get for pain and suffering. Instead, the jury decides based on what they think is fair.

Answering a Lawsuit: When someone is sued, they have 30 days to respond. If, for some reason, they ask the court to clarify something, they can get a little more time.

Legal Costs: There is no double-dipping. You can’t get paid twice for the same legal costs, like lawyer fees.

Contract Disputes: If someone breaks a contract, and if they were really difficult or acted in bad faith, you can ask for legal costs. 

Seat Belts: If someone wasn’t wearing a seat belt, it can be introduced as evidence in court to show the other party might be partly responsible for their injuries.

Negligent Security: If you didn’t keep your property safe and someone got hurt, you might have to pay damages, but only if you knew there was a risk and didn’t fix it.

Security Contractors: If a company is hired to keep a place safe, the same rules that the property owner has then apply to them being responsible if someone gets hurt.

Medical Costs: You can only ask for money to cover necessary and reasonable medical costs. 

Trial Phases: Trials can be split into separate parts. First, to decide who is responsible, then how much money should be given and, lastly, if there should be extra penalties or fees.

Here’s how the reform may affect auto dealerships:

Reduced Liability Risks: The Act introduces stricter standards for negligent security and premises liability, potentially making it harder for customers to sue dealerships for injuries on their property. 

Stricter Evidence Standards: The Act restricts some types of evidence that can be presented in personal injury cases, potentially making it more difficult for plaintiffs to win cases against dealerships.

Modified Comparative Negligence: The Act updated the modified comparative negligence rule. For example, a customer may not be able to recover damages from the dealership if they are found to be more than 50% at fault in an accident. 

Limited Punitive Damages: The Act places a cap on punitive damages in many cases, limiting the amount that injured parties can be awarded. 

Lower Insurance Premiums: By limiting damages and making it more difficult to win lawsuits, the Act could ultimately lead to lower insurance costs for businesses, including dealerships.

While critics still question the eventual outcome of the Act, experts point to Florida as a shining example of what can happen. Florida’s tort reform was signed into law in 2023, and since then, the state has seen a nearly 6% reduction in insurance premiums and has 11 new carriers coming into the state writing policies. In a February 2025 statement from Gov. DeSantis’ office, it was reported that 60% of insurance carriers have expanded business in the state and 40% filed for a rate decrease.

While specific price reductions cannot be guaranteed, when asked, Georgia Commissioner King stated that the Act gives him more footing to push back or ask to review the companies’ data if they came to him requesting higher premiums. If Georgia can achieve even half of the results that Florida has had, it would be a huge win, giving small businesses a much-needed lifeline.