Georgia Tort Reform Legislation (2025): A New Era for Insurance Claims and Public Adjusters

Georgia has ushered in a transformative era for its insurance and legal landscape with the passage of comprehensive tort reform legislation spearheaded by Governor Brian Kemp. Senate Bill 68 and Senate Bill 69 introduce sweeping protections for insurance carriers and businesses that promise to reshape how claims are handled throughout the state. As of March 30, 2025, SB 68 has successfully passed both the Georgia House and Senate and is awaiting the Governor's signature, where it is virtually guaranteed to become law. QPWB

The Driving Forces Behind Reform

The urgency behind Georgia's tort reform stems from years of mounting challenges in the state's legal system. Georgia has consistently ranked among the worst legal climates for businesses and insurers, plagued by soaring litigation costs that drove one of the highest auto insurance rate increases in the nation—a staggering 21% jump in 2024 alone. QPWB These escalating costs weren't just affecting insurance companies; they were being passed directly to Georgia consumers and businesses through higher premiums and increased operational costs.

The reform legislation targets what proponents describe as "runaway litigation costs and excessive jury awards" that have created an unsustainable environment for insurers and businesses operating in the state. By introducing clearer standards and limitations, lawmakers aim to create a more predictable and stable insurance market that benefits all stakeholders.

Core Provisions of Senate Bill 68

The reform package addresses several critical areas that have contributed to Georgia's challenging legal climate. One of the most impactful changes involves curbing double recovery of attorney fees. Previously, plaintiffs' attorneys could inflate legal costs by recovering attorney fees multiple times, a practice that significantly increased the overall cost of litigation. QPWB This provision aims to eliminate duplicative fee awards that artificially inflated claim settlements.

Another significant modification concerns voluntary dismissals. Under the new rules, plaintiffs may no longer unilaterally dismiss a lawsuit after a defendant has filed an answer or motion for summary judgment. A dismissal now requires consent from all parties, bringing Georgia's procedures in line with federal court standards. QPWB This change prevents plaintiffs from strategically dismissing and refiling cases to gain procedural advantages or to circumvent unfavorable rulings.

The legislation also addresses standards and limitations for holding property owners liable in negligent security cases, an area that has become a frequent source of litigation. QPWB These provisions establish clearer guidelines for determining when property owners can be held responsible for criminal acts committed by third parties on their premises, an issue that has generated substantial controversy and inconsistent outcomes in Georgia courts.

Anticipated Economic Impact

The projected economic benefits of tort reform are substantial and far-reaching. By reining in lawsuit abuse, the reforms are expected to reduce claims costs through tighter standards on liability and damage awards, enabling insurers to better control payouts and predict risk exposure. QPWB This increased predictability should translate into more stable pricing models and improved financial planning for insurance carriers.

Lower claims costs are anticipated to stabilize premiums, allowing insurers to pass savings to policyholders and resulting in more competitive rates across the market. QPWB For Georgia residents and businesses struggling with rising insurance costs, this represents potentially significant relief. Additionally, with lower liability risks, Georgia is expected to become a more attractive destination for businesses to expand, increasing policy demand and contributing to overall market stability. QPWB

Governor Kemp and business leaders throughout the state have praised the reforms as critical to Georgia's economic competitiveness and long-term stability. Major insurers, self-insured trucking companies, and risk retention groups have been vocal advocates for these changes, arguing that tort reform is essential for maintaining a viable insurance market in the state.

Implications for Public Adjusters

The new legal framework presents a complex landscape for public adjusters who represent policyholders in insurance disputes. While the reforms aim to reduce excessive litigation and limit what insurers call "nuclear verdicts," they fundamentally alter the strategic environment in which public adjusters operate.

Public adjusters must now develop new approaches to maximize client outcomes within this reformed system. The elimination of certain legal tactics and the tightening of liability standards means that the traditional methods of leveraging litigation pressure may be less effective. However, this shift simultaneously amplifies the importance of the core competencies that distinguish exceptional public adjusters: meticulous documentation, comprehensive damage assessment, expert policy interpretation, and sophisticated negotiation skills.

In many ways, the reforms may actually enhance the value proposition of hiring a qualified public adjuster. As insurance companies benefit from a more favorable legal climate and reduced litigation exposure, they may become emboldened in their claim handling practices. Policyholders need experienced advocates who understand not only the technical aspects of property damage claims but also how to navigate the evolving legal and regulatory framework effectively.

The emphasis shifts from litigation threats to demonstrable evidence and persuasive negotiation. Public adjusters who can build ironclad cases through thorough investigation, expert opinions, and detailed documentation will be positioned to achieve optimal outcomes for their clients, even within the constraints of the reformed system.

Balancing Reform and Consumer Protection

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

This tension highlights the ongoing debate about the proper balance between protecting defendants from frivolous or excessive claims and preserving plaintiffs' rights to seek full compensation for genuine losses. Critics worry that reforms may make it more difficult for legitimate claimants to recover fair compensation, particularly in complex cases involving catastrophic injuries or significant property damage.

However, it's crucial to understand that tort reform doesn't eliminate fundamental policyholder protections or rights. Georgia law continues to require insurance companies to act in good faith when handling claims, maintaining obligations for prompt investigation and fair evaluation of damages. The right to hire a public adjuster to advocate for policyholder interests remains fully intact and may become even more important as the claims landscape evolves.

Strategic Considerations Moving Forward

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. QPWB The coming months and years will reveal how effectively the legislation achieves its stated objectives and whether the anticipated benefits materialize for consumers.

For property owners facing insurance claims in Georgia, the message is unequivocal: professional representation has never been more critical. As the legal and regulatory environment undergoes this significant transformation, having an experienced public adjuster who comprehends both insurance policy intricacies and Georgia's reformed legal landscape can dramatically influence claim outcomes.

Public adjusters must view these reforms not as obstacles but as a call to elevate their professional standards and demonstrate value through superior service delivery. Those who invest in continuing education, stay current with evolving legal precedents, and refine their technical expertise will thrive in this new environment.

The ultimate measure of tort reform's success will be whether it achieves the delicate balance of reducing frivolous litigation and stabilizing costs while ensuring that policyholders with legitimate claims receive fair treatment and full compensation. Public adjusters will continue to serve as essential advocates in this equation, fighting to ensure that the pendulum swing toward reform doesn't result in legitimate claims being systematically undervalued or unjustly denied. Their role in protecting policyholder rights and maximizing claim recoveries remains as vital as ever in Georgia's evolving insurance landscape.