Impacts on Public Entities, Private Businesses, the State Risk Fund and Excess Liability Brokers/Carrier

1. GOVERNMENTAL IMMUNITY
LIMITATIONS ON JUDGMENTS
Impacts on Public Entities, Private Businesses, the State
Risk Fund, and Excess Liability Brokers/Carriers

2. Claims Subject to State Tort Caps
• Personal injury
• Wrongful death
• Property damage
• Loss of consortium
• Wrongful termination
• Invasion/violation of privacy
• Discrimination under state law
Governmental Immunity Limitations/Impacts 2

3. Current State Tort Caps
• $717,100 per person/per occurrence
• $2,455,900 aggregate/per occurrence
• $286,900 property damage/per occurrence
• Adjusted biennially per UCA 63G-7-605
• Apply to State and political subdivisions
• Do not apply to torts outside the State
Governmental Immunity Limitations/Impacts 3

4. GIA Tort Cap Increases
$-
$500,000.00
$1,000,000.00
$1,500,000.00
$2,000,000.00
$2,500,000.00
$3,000,000.00
PP/Occ
Agg/Occ
USU Van
Rollover
9/25/2005
391%
Increase
187%
Increase
Governmental Immunity Limitations/Impacts 4
Highland HS
Van
Rollover
11/6/2000

5. 2017 Session – SB98
• Revised tort cap calculation places greater emphasis on
medical care indexes to address health care inflation.
• Next biennial adjustment – July 1, 2018.
Governmental Immunity Limitations/Impacts 5
Calculation Method Liability
BI Per Person
Liability BI Per
Occurrence
Property
Damage
2014 Caps $703,000 $2,407,700 $281,300
2016 Caps $717,100 $2,455,900 $286,900
Pre-SB98 Increase $14,100 (2%) $48,200 (2%) $5,600/0%
2016 Caps (SB98) $723,000 $2,476,000 $286,900
Post-SB98 Increase $20,000 (2.84%) $68,300 (2.84%) $5,600/0%

6. GIA Tort Cap Increases
$-
$500,000.00
$1,000,000.00
$1,500,000.00
$2,000,000.00
$2,500,000.00
$3,000,000.00
PP/Occ
Agg/Occ
USU Van
Rollover
9/25/2005
391%
Increase
187%
Increase
Governmental Immunity Limitations/Impacts 6
Highland HS
Van
Rollover
11/6/2000

7. Governmental Immunity Limitations/Impacts 7
No Caps/Ltd Gov Immunities
Per Person Caps > Utah Per Person & Agg Caps < Utah
Per Person & Agg Caps > Utah
State Tort Cap Map
No Caps/˄ Gov Immunities
Aggregate (Agg) Caps > Utah

8. Governmental Immunity Limitations/Impacts 8
No Caps/Ltd Gov Immunities
Per Person Caps > Utah Per Person & Agg Caps < Utah
Per Person & Agg Caps > Utah
State Subdivision Cap Map
No Caps/˄ Gov Immunities
Aggregate (Agg) Caps > Utah

9. Federal Claims with Caps
•Employment discrimination claims
•$50K: 15-100 employees
•$100K: 101 – 200 employees
•$200K: 201 – 500 employees
•$300K: >500 employees
Governmental Immunity Limitations/Impacts 9

10. Federal Claims with NO Caps
• Section 1983
• 1st Amendment
• 4th Amendment
• 5th Amendment
• 8th Amendment
• 14th Amendment
Governmental Immunity Limitations/Impacts 10

11. Excess Liability Insurance
• “Gap” Coverage Rationale
• Out-of-state auto/bus losses
• Non-capped civil rights claims
• Market Hardening
• Law enforcement liability and transit claims
• Only two carriers left in public sector space
• Increasing premiums with reduced coverage
• Caps promote underwriting stability
Governmental Immunity Limitations/Impacts 11

12. State of Utah Excess Liability Program
Unlimited Annual Aggregate
Broker: Aon
Insurer: Lloyd’s Brit Syndicate
Annual Premium: $600,300
$20Million Annual Aggregate
$10Million Per Occurrence
$2Million Self-Insured Retention/$1M Corridor
General
Liability
EXCLUDING
Products &
Completed
Operations
General
Liability &
Premises
Liability
Auto Liability Errors &
Omissions
Employment
Practices
Liability
Employee
Benefits
Governmental Immunity Limitations/Impacts 12

13. Governmental Immunity Limitations/Impacts 13
1-2 Mil SIR
10 Mil 10 Mil 10 Mil 10 Mil10 Mil
2.5 Mil 5.5 Mil 6.5 Mil
40 Mil
40 Mil
40 Mil 40 Mil
35 Mil
35 Mil
35 Mil 35 Mil
0
10
20
30
40
50
60
70
80
90
100
Utah Most Agencies WDOT WDOC WSocial Health Services
Utah/Washington Liability Programs
Additional Excess Aggregate Insurance Purchased Excess Aggregate Insurance Purchased
Additional Self Insurance by Agency Self Insurance Liability Account by Risk Fund
$$ In Millions
$1.5M
Premium
$4.7M
Premium
20 Mil Agg
EB, EPL, E&O
UnlimitedAggregate
(GL,PL,AL)UTAH WASHINGTON
$600K
Premium

14. Private Business Impacts
• Public Facilities
• Civic Center Statute (Schools)
• Risk Transfer
• Indemnification
• Insurance
• Private businesses should carry insurance approaching or
exceeding the caps, depending on risk
• As caps increase, private businesses will have to procure
more insurance to contract with public entities
Governmental Immunity Limitations/Impacts 14

15. QUESTIONS?
Brian Nelson, Director
Utah Division of Risk Management
5120 State Office Building
Salt Lake City, UT 84114
Phone: (801) 538-9576
Email: benelson@utah.gov
Governmental Immunity Limitations/Impacts 15