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Georgia Senate Bill 68: Comprehensive Lawsuit Reform

By Lauren Pratscher, Frannie Epps | Published May 6, 2025

Executive Summary

On April 21st, 2025, Georgia Governor Brian Kemp signed Senate Bill 68 into law, enacting one of the most comprehensive tort reform packages in the state’s history. This legislation aims to reduce excessive litigation, introduce fairness in civil courts, and stabilize liability costs for businesses and consumers. For the insurance industry, this represents a meaningful shift in Georgia’s risk and claims environment.

Background: Georgia’s Legal Climate Prior to SB 68

For years, Georgia has been labeled a “judicial hellhole” by national watchdog groups due to its plaintiff-friendly court rulings, high-dollar jury awards, and opaque third-party litigation funding practices. Insurers operating in Georgia have felt the ripple effects—especially in auto liability, commercial general liability, and umbrella lines. Skyrocketing verdicts and legal costs have put pressure on reserves and driven up claim severity. Businesses, particularly in transportation, construction, and healthcare, have struggled with increased premiums and reduced availability of coverage. Senate Bill 68 (SB 68) is a sweeping legislative response, designed to bring long-awaited structural reform to the state’s civil justice system.

Highlights of SB 68: Key Legal Reforms

SB 68 introduces a range of measures aimed at increasing judicial transparency and curbing litigation abuse. Major provisions include:

• Transparency in Litigation Funding: The law now requires disclosure of third-party litigation funding, including foreign-backed funders, helping identify potential conflicts of interest and foreign influence.

• Admissibility of Seatbelt Evidence: Evidence of whether a plaintiff wore a seatbelt is now admissible in court, potentially reducing damages in auto liability cases.

• “Truth-in-Damages” Rule for Medical Bills: Jurors may now see both the billed and paid amounts for medical care, limiting inflated medical damage claims and improving claim valuation accuracy.

• Premises Liability Reform: The law narrows negligent security claims against property owners, especially for crimes committed by third parties, and sets stricter evidentiary standards.

• Anchoring Restrictions in Closing Arguments: The law prohibits using unrelated benchmarks (e.g., pro athlete salaries) to influence jury pain-and-suffering awards.

• Bifurcated Trials: Courts may now separate fault and damages phases of a trial, helping reduce bias and improving fairness.

• Limits on Attorney’s Fees and Voluntary Dismissals: Prevents “double-dipping” for legal fees and restricts strategic dismissals designed to manipulate jurisdiction or delay proceedings.

• Venue and Procedural Reforms: Enhancements to motion-to-dismiss timing, apportionment of fault, and discovery rules aim to streamline litigation and reduce costs.

What It Means for Insurers

SB 68 is expected to shift the liability climate in several ways:

• Improved Predictability: Clearer evidentiary rules and limits on speculative damages create a more stable legal environment for claims evaluation.

• Reduced Frequency of “Nuclear Verdicts”: Anchoring restrictions, transparent medical billing, and seatbelt admissibility can reduce jury award inflation—especially in transportation and bodily injury cases.

• Potential for Rate Stabilization: While actuarial impacts will unfold over time, carriers may see improved loss ratios and reinsurance conditions in Georgia if litigation patterns shift as expected.

• Better Claims Management Tools: Adjusters and defense counsel can leverage new discovery rights (e.g., in funding disclosures or medical billing arrangements) to challenge inflated claims more effectively.

Senate Bill 68 is a milestone in Georgia's legal reform history. For insurers and clients alike, it promises a more predictable and equitable framework for resolving liability claims. While long-term actuarial outcomes will take time to mature, the direction is clear: Georgia is moving toward a more disciplined and transparent legal system.

References

1. Georgia Senate Bill 68, 2024 Legislative Session
2. Georgia Policy Foundation Analysis
3. Georgia Trial Lawyers Association Position Statements
4. Georgia Chamber of Commerce Economic Impact Projections

Author

Lauren Pratscher

Head of Casualty Placement

Frannie Epps

Head of Service - Business Insurance

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