What is an ‘excess verdict’ and how does it relate to bad faith?

What is an ‘excess verdict’ and how does it relate to bad faith?

An excess verdict occurs when a jury awards damages against a defendant that exceed the defendant’s insurance policy limits. Under Georgia law, as established in Southern General Insurance Co. v. Holt, 262 Ga. 267 (1992), if an insurer refuses to settle a claim within policy limits when a reasonable insurer would have settled — exposing its insured to personal liability above the policy limit — the insurer can be held responsible for the full excess verdict. This bad faith doctrine is one of the most powerful tools in serious injury and wrongful death litigation. At Haug Barron Law Group, we routinely use statutory demand letters and documented settlement opportunities to create the evidentiary record needed to pursue excess verdict bad faith claims.