Legislation recently passed by both the Georgia House and Senate and supported by Gov. Brian Kemp is expected to lessen the number of premises liability and other injury lawsuits faced by businesses throughout the state.
The legislation is being praised by the Chamber of Commerce and other business advocates because it makes it more difficult for people to hold businesses liable for injuries and other harm that occurs on their property.
Will insurance costs decrease?
An impetus for the legislation was the increasing insurance premiums being paid by businesses to help cover damages awarded to plaintiffs for things like slip-and-fall injuries. In some cases, small businesses have had to go without this insurance because they could no longer afford it.
However, as some who opposed the legislation noted, there’s no guarantee that insurers will lower their rates. One Atlanta-area state representative said, “There isn’t a single line in this bill that requires insurance providers to reduce premiums, to stabilize them or even keep offering policies.”
An effort to “curb lawsuit abuse”
The legislation is being touted as an “overhaul” of the state’s civil litigation system and a significant win for tort reform. Once the law takes effect, plaintiffs will be required to show that a business had prior knowledge that there was a safety issue to be held liable.
Supporters say it will “curb lawsuit abuse,” as the head of the Georgia Chamber of Commerce put it, and make Georgia a more attractive place to do business. The president of the American Tort Reform Association said that the legislation “addresses key issues contributing to Georgia’s reputation as a judicial hellhole.”
The law also applies to wrongdoing by an employee or others on the property. Examples include harm suffered by those in nursing homes and child day care facilities. The legislation faced some opposition by those who say it will now be more difficult for victims and families to hold businesses liable for abuse.
The new law will present more challenges for plaintiffs. It may also cut down on frivolous lawsuits that can be a burden, both in time, money and human resources, to handle. However, it’s still crucial that businesses take the necessary steps to keep anyone who’s legally on their property as safe as possible. If your business is facing a lawsuit, it’s still critical to take it seriously and have solid legal guidance.
