Get instant
small business insurance quotes

Home > Professional Liability/Errors & Omissions Insurance > News

Alabama passes lawsuit legislation, reduces statue of limitations


Once referred to as "tort hell" by Forbes Magazine, Alabama is close to passing several bills that would enforce restrictions on certain lawsuits and reduce verdict payouts.

In the past, Alabama had been a popular venue for lawsuits, as juries often agreed to multi-million dollar verdicts. However, a new round of bills recently passed through the Alabama House, which was made possible when Republicans took ahold of the state's majority.

For developers and architects in the area, the bills are a welcome sight. One bill will reduce the statue of limitations against architects or builders from 12 years to seven years. The same bill will also lower the amount of interest a plaintiff can collect from a jury award during a verdict's appeal from 12 percent to 7.5 percent.

Another proposed bill will limit lawsuits filed in wrongful death cases as well.

Several newsworthy lawsuits claiming professional liability regarding construction have been detailed lately. One popular instance involves the Trump SoHo in New York, as the developers of the hotel filed a lawsuit against the architect and design firm, claiming the hotel does not follow building code.  

WHY Business Insurance Now?

Learn why thousands of small businesses trust Business Insurance Now as their insurance agency.

Take 15 minutes to see how we can help you protect your business.

  • FREE, no-obligation quotes.
  • Complete one online application to compare multiple quotes.
  • Fast response—typically less than 24 hours on week days.
  • We are a nationwide insurance agency covering 48 states.
  • We work directly with you to evaluate your insurance options.
  • We only work with the top business insurance carriers in the country.
  • Expert, licensed insurance agents to guide you through the process.