Tort reform in effect in TN
Wednesday, October 5th, 2011
Tennessee’s tort reform law went into effect on October 1, 2011. It places caps on non-economic damages and punitive damages except in certain egregious cases.
Governor Haslam and legislative sponsors tout the increased predictability that the new law will bring to businesses aiming to quantify risk. They say it brings Tennessee on par with other Southeastern states, which will enhance recruitment of businesses to the state.
We anticipate that it will help existing businesses too, as insurers adjust their risk analysis for the new environment. That may bring liability insurance rates down, which would be a welcome relief to small business owners. Consult your insurer and let him or her know you are watching how their company responds to the reforms now in place.
This law follows the 2008 medical tort reform law that sponsors say has reduced non-meritorious claims by 50%.
Insurance is a useful tool to help you protect your business and personal assets from catastrophe. Our firm chooses not to sell insurance, investments, or other financial products. This frees us to give you unbiased insight into the use of insurance and other financial tools for the betterment of your company and family.