The TGTLA caps at specified dollar amounts the liability exposure of local governments for tort claims. Every policy or insurance contract purchased by a governmental entity must provide these minimum coverage amounts. The caps (or minimum coverage amounts) in the chart below apply. T.C.A. § 29-20-403.

No judgment or award rendered against a governmental entity may exceed the limits of liability specified in § 29-20-403, unless such governmental entity has secured insurance coverage in excess of such minimum requirements, in which event the judgment or award may not exceed the applicable limits provided in the insurance policy. Tenn. Code Ann. § 29-20-311. But no governmental entity or its insurer can be held liable for any judgment in excess of the Tenn. Code Ann. § 29-20-403 limits unless it has waived those limits in accordance with Tenn. Code Ann. § 29-20-404.

The law is comprehensive, but it expressly states that it does not affect certain statutes. Any action in eminent domain initiated by a landowner (inverse condemnation) under T.C.A. § 29-16-123 and T.C.A. § 29-16-124 is explicitly exempted from the caps. T.C.A. § 29-20-105. Similarly, the caps do not apply to any action brought by an employee under Tennessee’s workers’ compensation laws. T.C.A. § 29-20-106.