Business Insurance in Georgia: A Cautionary Tale
Picture a Marietta plumbing company that once paid $700 a year to insure a single service truck. By 2024, that premium had exploded to more than $5,000—a 600 percent jump that threatened to park the truck for good. Stories like this echo across Georgia’s construction sites, delivery fleets, and main-street storefronts.
What drove the spike? And will anything change? With Governor Brian Kemp’s signature on Senate Bills 68 and 69 in April 2025, the answer looks increasingly like “yes.”
The Real Culprit: “Nuclear Verdicts” and a Hostile Legal Climate
Over the past decade Georgia climbed the ranks of the American Tort Reform Foundation’s Judicial Hellholes report. Outsized jury awards—so-called nuclear verdicts of $10 million or more—became common, especially in commercial-auto and negligent-security cases.
Plaintiff attorneys leveraged rules that allowed:
- Phantom medical damages (juries saw inflated sticker prices, not the lower amounts actually paid);
- Jury anchoring—suggesting sky-high dollar figures for pain and suffering; and
- Double recovery of attorney fees, encouraging suits against every conceivable defendant.
Insurers responded by raising premiums or exiting the state. Georgia businesses, large and small, picked up the tab.
2025 Georgia Tort Reform in Plain English (SB 68 & SB 69)
| Provision | Practical Impact on Businesses |
|---|---|
| Premises-Liability Reset | Limits liability to hazards a business could reasonably control, curbing jackpot negligent-security verdicts. |
| Truth-in-Damages | Allows juries to see actual medical costs paid, reducing inflated awards. |
| Ban on Jury Anchoring | Bars attorneys from suggesting arbitrary mega-dollar pain-and-suffering figures. |
| Bifurcated Trials | Judges may split trials—fault first, damages second—reducing prejudice. |
| Seat-Belt Evidence | Jurors may consider a plaintiff’s seat-belt use when valuing auto claims. |
| No Double Attorney-Fee Recovery | Ends stacking of fee awards against multiple defendants. |
| Litigation-Funding Transparency (SB 69) | Requires funders to register with state regulators, disclose funding, and bans foreign-adversary financing. See Wilson Elser analysis. |
Effective dates: Most SB 68 provisions apply to claims filed on or after July 1, 2025; SB 69’s rules take effect January 1, 2026.
How the Reforms Should Affect Your Premiums
- Short term (6–12 months): Rate increases should slow as insurers price 2026 renewals with lower projected losses.
- Medium term (12–24 months): Expect new carriers to re-enter Georgia, boosting competition in trucking, contracting, and hospitality.
- Long term (24+ months): Premiums should normalize as verdict data under the new rules reaches actuarial credibility.
Bottom line: The reforms won’t erase years of escalation overnight, but they break the upward spiral of automatic double-digit hikes.
Four Action Steps for Georgia Business Owners
- Benchmark Early – Start the renewal process 90 days out to capture early repricing.
- Upgrade Safety & Fleet Programs – Underwriters will reward demonstrable loss-control results.
- Rewrite Contract Language – Align leases, vendor agreements, and subcontractor contracts with the new premises-liability standards.
- Educate Leadership – Share this article internally so finance, operations, and legal teams can budget with confidence.
The Southern Agency: Your Advocate for Insurance Stability
At The Southern Agency, we understand the unique challenges Georgia businesses face. Our commitment goes beyond securing coverage—we actively advocate for legislative solutions and industry improvements that protect and empower our clients.
We continuously monitor changes in state laws, court decisions, and carrier appetite, then translate those developments into actionable guidance for your risk-management strategy. With SB 68 and SB 69 now on the books, we’re optimistic about the future of business insurance in Georgia—and ready to help you navigate the new landscape effectively.
Ready to See How These Reforms Could Benefit Your Business?
Curious how the new laws might affect your premiums and overall risk profile? Contact The Southern Agency today. We’ll break down the reforms’ impact on your specific operations and ensure your business remains well-protected and prepared for the future.
Better coverage. Lower risk. Leading insight.
