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Kemp urges comprehensive tort reform to curb rising insurance costs, citing business and health-care impacts
Summary
Gov. Brian P. Kemp announced plans to introduce comprehensive tort reform, saying rising liability costs are threatening small businesses, hospitals and major employers across Georgia.
Gov. Brian P. Kemp said he will introduce comprehensive tort reform legislation in the coming days, arguing Georgia’s legal environment is driving up insurance costs for small businesses, health-care providers and large employers.
Kemp described three statewide roundtables—held with small businesses, health-care providers and major employers—where participants reported sharply higher liability and other insurance premiums. He said small businesses reported premium increases “anywhere from 30% to over 100%” since recent years, forcing some to delay hiring or change operations; he described one childcare company with multiple locations that faced a 100% increase in premiums since 2018.
The governor told the joint session that some hospitals reported liability premium increases of 115% in a single year, and that workforce and service options have narrowed as providers consider leaving Georgia for states with lower liability costs. Kemp singled out Waffle House as an example: he said Waffle House’s liability premiums in Georgia have risen 235% since 2018 and that the average cost for a negligent-security lawsuit in Georgia far exceeds comparable averages in neighboring states.
Nut graf: Kemp framed tort reform as necessary to preserve businesses, retain health-care providers and stabilize insurance markets; he said his office’s forthcoming bill will be “comprehensive but fair” and urged bipartisan support.
Kemp referenced prior work on House Bill 1114, which he said allowed the insurance commissioner to gather data on the state’s insurance industry; he said the new package will build on that information and seek meaningful liability reforms. He warned there will be “no room for excuses, half measures, or failure,” and said the lieutenant governor and speaker signaled support for prompt action.
Ending: Kemp urged the General Assembly to act during this session — or in a possible second session later in the year — to deliver “meaningful, impactful tort reform.”
