Revisions to Georgia’s two direct-action statutes (O.C.G.A. Sections 40-1-112 and 40-2-140) will largely prevent a plaintiff from directly suing a motor carrier’s liability insurer in the absence of a judgment, ending a nearly 100-year-old peculiarity in Georgia law that was at odds with the otherwise universal prohibition on direct-action claims against liability insurers.

Georgia’s lieutenant governor described the amendments as “desperately needed,” saying they would “level the playing field” for trucking companies involved in Georgia litigation. The amendments were the direct result of a report by the Georgia Senate’s study committee on truck driver shortages, tasked in 2023 with recommending actions or legislation to address the persistent shortfall of qualified truck drivers and the impact of driver shortages on Georgia businesses. The report highlighted testimony to the Senate panel by Georgia’s Insurance Commissioner John King, who explained that the state’s trucking industry depended upon access to affordable insurance and that repealing the direct-action law was the quickest way to provide relief to the trucking industry. According to the report, King testified that direct-action claims increase litigation costs and awards, resulting in higher insurance premiums for trucking companies and higher shipping costs that are ultimately passed on to Georgia consumers. He also testified that repealing the direct-action law would strengthen Georgia’s trucking industry by treating it like every other business while still giving plaintiffs a fair day in court.

Short History of Georgia’s Direct-Action Law