Rising Litigation Costs and Tort Reform Momentum Shape Liability Claims in 2025

Liability litigation trends in 2025 reveal a shifting legal and regulatory landscape, with states like Georgia, Florida, and Louisiana leading aggressive tort reform initiatives aimed at curbing lawsuit abuse and runaway verdicts. Florida’s landmark 2023 reforms are already showing results—lower auto insurance rates, fewer lawsuits, and a dramatic drop in questionable claims—despite recent efforts to roll back these changes. Georgia’s recent legislation targets premises liability and litigation financing, aiming to shake its longstanding reputation as a ‘Judicial Hellhole.’

Attorney advertising, social media marketing, and third-party lead generation are fueling record-high attorney representation rates. Sedgwick data shows that 64% of general liability and 75% of auto liability claimants secure legal counsel within two weeks of claim assignment, narrowing the window for insurers to engage and resolve claims amicably. Carriers are encouraged to adopt better customer communication, early triage using predictive analytics, and more seamless intake technologies to keep pace.

The rise of nuclear verdicts—those exceeding $10 million—and thermonuclear verdicts over $100 million is another defining concern. With verdicts up 52% in 2024 and defense costs climbing steadily, the pressure is on insurers to identify and triage high-exposure claims early. Georgia’s and Louisiana’s tort law changes targeting phantom damages and comparative fault are critical steps forward, but states like Texas are lagging behind in reform despite a surge in outsized jury awards.

In this environment, early claim identification, effective litigation triage, and selecting the right legal and expert resources are essential to managing high-risk files. Avoiding disjointed legal strategies, groupthink, and poor expert selection can mean the difference between fair resolutions and runaway awards. As public sentiment shifts and jury unpredictability grows, claims professionals must evolve litigation strategies with data, empathy, and smart resource alignment.