A new Georgia law means insurers are now mostly protected from lawsuits being filed directly against them after crashes involving trucks. Supporters see the measure as a response to financially crippling nuclear verdicts.
Gov. Brian Kemp recently signed the bill, which passed 172-0 in the state House of Representatives and 46-2 in the Senate. Insurers can now be sued directly only if a plaintiff can’t find the driver or the carrier that was involved in the accident, or if the carrier has gone bankrupt.
Backers say protecting insurers against such lawsuits would boost the struggling insurance market for carriers and reduce premiums.
An overwhelming majority of states already forbid most direct-action lawsuits against insurers of carriers and truck drivers, according to Insurance Journal, and insurers in states that do allow such actions have responded to huge jury verdicts and settlements by increasing rates or halting coverage altogether.
Bryce Rawson, assistant to Georgia Insurance Commissioner John King, said in January that the existing law “has destroyed our market. No one wants to insure trucking here,” Insurance Journal reported.
A similar bill in 2023 failed.
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The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowThe night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowIndustry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now