Amwins highlights traction in tort reform across the southeastern US

By Isha Marathe

May 14 - (The Insurer) - Recent legislative actions aiming to reduce nuclear verdicts, gain clarity on liabilities and address third-party litigation funding are already changing the legal environment and insurance dynamics in several key states across the southeastern U.S., Amwins said.

“Over the past year, we’ve seen more traction around tort reform than in the previous decade,” said Corey Alison, executive vice president and national real estate practice leader of casualty at the wholesale intermediary.

“This momentum is shifting the risk calculus for property owners, insurers, and legal professionals alike, especially in high-exposure markets.”

Amwins highlighted developments across a number of southeastern states in recent years.

It noted that Florida had "led the charge" on tort reform with three bills in 2023 that introduced laws to enhance liability protections for apartment owners, restrict misleading legal ads and standardise timeframes for insurers to respond to claims.

In April Georgia passed its own omnibus reform to tackle litigation anchoring, phantom damages and premises liability law, with the legislation also creating new transparency standards around litigation financing. States like Louisiana and South Carolina have taken their own steps in tort reform legislation over the last few years, although Amwins pointed to challenges that remain in those states to continue momentum.

For instance, Louisiana's Senate Bill 355 and Senate Bill 16 improved third-party litigation transparency and aligned expert testimony rules with federal standards, but Amwins suggested the state is "having a hard time" agreeing on next steps. It noted that nuclear verdicts are leading to discussions on additional tort reform aimed at bodily injury and litigated claims, while ongoing long-term coastal litigation "is helping to cement the state's position as a top-10 judicial hell hole".

South Carolina is catching up with the passage of its Senate Bill 244 on March 31, reducing the liability coverage requirement for bars and restaurants from $1 million to $500,000. Liquor liability in the state has long been considered cost-prohibitive with carriers losing as much as $2.60 for every $1 of premium earned, making it unprofitable to do business in the state and therefore limiting coverage options, Amwins said.

Joint and several liability rules were also adjusted as part of the bill, requiring businesses to pay economic damages according to their fault in an incident. Thus a business found to be more than 50% at fault would remain responsible for the full economic damage.

But Amwins expects the bill to see stiff debate as it moves to the House of Representatives, which passed a narrower version earlier in 2025 with a liquor liability carve-out.

"As the new laws are tested in court, we expect plaintiffs’ attorneys will continue to seek new ways to expand theories of liability and expose potential loopholes in the legal system," Amwins said.

"We expect this positive momentum will promote fairness in the legal system and create a standard for other states to follow. However, it will take time for the effects of the reforms of the past few years to be realised."