Tort Reform in Georgia: What It Is and How It Impacts You

Tort reform impacts everyone in Georgia, even if you've never filed a lawsuit or made an insurance claim. It influences insurance costs, liability risks, and how claims are handled across the state.

In 2025, Georgia passed significant tort reform legislation aimed at addressing rising litigation costs and large jury verdicts. Understanding these changes can help you make more informed decisions about your insurance coverage and what to expect going forward.

What Is Tort Reform?

A tort is a civil wrong—when someone causes harm or injury to another, either through their actions or negligence. It could be something like a car accident, a slip-and-fall injury, or even medical malpractice.

Tort reform refers to changes in laws that govern these types of cases. It typically involves limiting the amount of money someone can win in a lawsuit or making it harder to file certain types of lawsuits. The goal is to make the legal system more predictable and balanced.

Georgia's Tort Reform Goals and Their Impact

In 2025, Georgia passed two major tort reform bills to address issues within the state's civil justice system. Key goals include:

Reducing frivolous or inflated lawsuits
Limiting extreme jury awards (known as "nuclear verdicts")
Creating more consistency and predictability in legal outcomes
Stabilizing insurance costs for Georgians

Tort reform is especially important here in Georgia, which has faced national criticism for its high number of nuclear verdicts (Rewards over $10 million) and concerning trends in premises liability cases (where property owners are held responsible for accidents on their land).

These issues have led to rising insurance premiums, higher business costs, and more uncertainty for both insurance companies and their customers. Businesses, especially small ones, often struggle with rising insurance costs, and individuals face higher premiums for things like car insurance, healthcare, and more.

What Changed in Georgia's 2025 Tort Reform?

In April 2025, Georgia passed its most significant tort reform in nearly 20 years, with Senate Bills 68 and 69. Key changes include:

1. Clearer Rules for Liability: "Negligent Security Reform"

Previously, business owners could sometimes be held responsible for crimes or injuries on their property, even if they were unrelated to the business. Now, to hold a business liable, plaintiffs must prove:

The property owner knew about a specific security risk
The owner failed to take reasonable steps to prevent it

Why it matters: This lowers the likelihood of lawsuits and helps keep insurance prices more predictable.

2. "Truth-in-Damages" for Medical Costs

Previously, juries saw inflated medical bills—often much higher than what was actually paid. Now, damage awards must reflect actual amounts paid or expected to be paid, not inflated billing numbers.

Why it matters: This ensures damage awards are more accurate and based on real economic loss.

3. Limits on Jury "Anchoring" Arguments

"Anchoring" is when attorneys reference unrelated large numbers (like luxury items or athlete salaries) to influence jury decisions. Now, damage arguments must be based on evidence directly related to the harm suffered.

Why it matters: This encourages fairer, fact-based decisions by juries.

4. Split Trials into Phases (Bifurcation)

Previously, fault, damages, and punitive penalties were decided at once, which could emotionally influence juries. Now, trials can be split into phases:

Deciding fault
Deciding compensatory damages
Deciding punitive damages and attorney fees

Why it matters: Splitting these phases reduces emotional bias and improves fairness.

5. Other Procedural Changes

Seatbelt use may be considered in auto accident cases
Attorneys can no longer collect overlapping fees for the same case
Defendants can seek earlier dismissal of weak claims
Greater transparency around third-party litigation funding

These changes aim to reduce unnecessary litigation costs and improve efficiency.

The Impact of Georgia's 2025 Tort Reform

Homeowners and Drivers

Even if you're not involved in a lawsuit, tort reform affects your insurance. Key impacts include:

Insurance premiums: Legal risk heavily influences pricing. More predictable lawsuits could slow premium increases.
Auto and liability claims: Damage calculations are now more realistic, tied to actual financial loss.
Coverage decisions: Liability decisions will likely be more predictable over time.

Businesses

Businesses are often directly impacted by tort reform. These changes may:

Reduce exposure to broad or unclear liability claims
Lower legal defense costs over time
Improve predictability in lawsuits and insurance underwriting

However, businesses still need to carry appropriate coverage and manage risk carefully. Tort reform does not eliminate liability, it clarifies it.

Going Forward

What to Watch Next

Senate Bill 69 elements took effect January 1, 2026, including litigation funding transparency
Court rulings will shape how these laws are applied
Insurance carriers may adjust pricing as outcomes become clearer

Your Next Steps

Tort reform isn't just a legal issue. It directly affects insurance costs, coverage decisions, and financial protection across Georgia. At Mountain Lakes Insurance, we believe that informed clients make better insurance choices. We're here to help you understand how Georgia's changing legal environment affects your coverage, and what options make sense for you.