“The Department of Administration shall obtain insurance or self-insure, the State and its Departments, Agencies, Boards, and Commissions, and all officers, agents and employees thereof against liability for acts or omissions of any nature while acting in authorized governmental or proprietary capacities and in the course and scope of employment or authorization.” (Arizona Revised Statutes §41-621).
Certain exclusions do apply to coverage provided by statute. The two most significant are:
- Losses that arise out of the commission of a felony by a state officer, agent, or employee
- Losses arising out of contractual breaches
The ADOA Risk Management Division (RMD) provides insurance coverage to University employees (including student employees) acting in good faith and within the course and scope of their University-authorized activities. The State provides a combination of funded self-insurance, along with commercial excess insurance, to carry out the intent of the statute. The program extends to include general liability, automobile liability and professional liability. Under this program, the State (or the insurance carrier) will defend university employees and pay judgment rendered in a court of law against employees.
The State’s self-insurance is in excess of any other valid and collectible insurance.
RMD established the following guidelines to determine whether a specific entity is a State agency, department, board, or commission and, thus, eligible for coverage under RMD’s program:
- must be authorized by statute
- must be supported by general fund moneys or revenues through licensing or taxing authorized by statute
- must be under the control and supervision of authorized University employees. The operation is accountable to the State for its actions.
- as authorized by statute, The Attorney General’s Office will defend all lawsuits against the University