NFIB State Director Tom Underwood today praised lawmakers for introducing Senate Bill 195, legislation that would help small businesses by bringing clarity and fairness to Kentucky’s civil justice system.

Underwood said the measure addresses several concerns of small business owners while preserving access to the courts.

“You shouldn’t be targeted for a lawsuit simply because some trial lawyer thinks you have the money to pay,” he said. “Small businesses operate on thin margins, so the cost of defending itself against even a single frivolous claim could be enough to put a small business out of business.

“Our members believe in accountability and a fair legal system,” he said. “If you’ve been hurt, you have a right to seek compensation, but Senate Bill 195 makes practical updates that can help reduce unnecessary costs and improve consistency without capping damages or denying anyone their day in court.”

The bill, introduced by Sen. Craig Richardson (Hopkinsville), would prevent plaintiffs from recovering damages if they are found to be 50 percent or more at fault. Juries would also be allowed to consider the role of third parties when determining fault. In addition, the measure would limit medical damage awards to amounts actually paid or owed, rather than inflated sticker prices.

Underwood said these changes matter because litigation costs directly affect small businesses’ bottom lines.

“When damage awards are based on amounts no one actually paid, or when fault cannot be fully and fairly allocated, insurance costs rise,” he said. “Higher premiums mean less money to hire workers, replace old equipment, or keep prices in check for customers.”

Senate Bill 195 also creates clearer procedures for medical malpractice and personal injury claims, including advance notice requirements and documentation standards, which Underwood said could help resolve disputes earlier and reduce drawn-out litigation.

“Small business owners need a legal system that is predictable and balanced,” he said. “Updating our liability laws would help strengthen Kentucky’s business climate, protect jobs, and support communities across the commonwealth.”