Tort reform in Georgia is shifting the legal terrain, but experts say now is not the time for businesses to ease up on safety protocols or insurance coverage. “We would never advise a client to stop doing the same sort of risk management practices that help prevent claims,” said Chip Renno (pictured), principal at Snellings Walters Insurance Agency.
The new measures aim to reduce frivolous lawsuits, yet their real impact remains unclear. “There’s likely to be quite a lag – probably at least a couple of years – before we understand the effects,” Renno said. That uncertainty extends to general liability, product liability, and auto insurance. For brokers, the job now is to reinforce best practices amid a legal environment that’s still taking shape.
Some businesses see tort reform as a signal that litigation risk has declined, prompting them to reassess insurance spending. Renno urged caution, however. “We’ll still see a lot of litigation. I think attorneys will find creative ways around the law,” he said. Ongoing court challenges and appellate rulings could reshape how the reforms function in practice.
“It’s going to be a while before we really understand how it affects insurance companies – whether they experience fewer claims, become more profitable, and whether rates actually come down,” Renno said. In the meantime, businesses trimming coverage may expose themselves to unintended risks.
Insurance costs have risen sharply for many manufacturers, and especially for midsize firms caught between market volatility and carrier retrenchment. “We work a lot in the group captive space,” said Renno, noting that self-insurance pools can offer greater control and stability – but only to companies that meet certain criteria. “It’s by far the most competitive and stable insurance available,” he said. Participation often depends on claims history, premium volume, and financial strength.
Umbrella coverage, once a safety valve, is also under strain. “Instead of a carrier like Travelers offering a $20 million umbrella, they’ve scaled down to $3 or $5 million,” Renno said. As a result, brokers are piecing together coverage layers from various markets – often at increased cost. “Many clients are scaling back their limits to some degree because of the added cost.”
Supply chain issues, intensified during the pandemic, continue to influence insurance decisions. Disruptions in raw materials reduce sales volume, which can lower or complicate liability coverage tied to revenue. “They can’t sell as much product if they’re having trouble getting materials on time,” Renno said. Brokers have had to adjust coverage mid-policy as financial conditions shift.
Meanwhile, insurers are less willing to underwrite higher-risk operations. “We go to the captive market, standard markets, and the excess and surplus (E&S) lines markets to get all possible options,” he said. In some cases, E&S carriers – long seen as fallback options – are offering more favorable terms than standard insurers.
While the legal environment may be changing, the fundamentals of insurance have not. “The safer you are and the fewer claims you have, the better a risk you represent. Ultimately, that means more competitive premiums,” Renno said. For manufacturers, that means continued investment in safety procedures and smart coverage choices.
Tort reform might change how lawsuits are filed, but it hasn’t eliminated the risk of being sued – or the financial fallout when litigation does occur. Brokers and their clients must continue treating insurance as a strategic tool, not a cost-cutting target.
