Governmental Liability Caps
The act 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 in each accident. T.C.A. § 29-20-403.
Governmental vehicles may be considered uninsured motor vehicles. However, the applicable limits of liability for cities for claims arising out of the operation of a government vehicle are equal only to the limits of T.C.A. § 29-20-311, T.C.A. § 56-7-1201(d), and T.C.A. § 56-7-1202(b).
The law is comprehensive, but 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.
|
Date Cause of Action Arose |
Liability cap for Death or Injury to One Person | Liability Cap for Death or Injury to All Persons | Liability Cap for Property Damage |
| On or after July 1, 1987, but before July 1, 2002. | $130,000 | $350,000 | $50,000 (applies to causes of action arising on or after July 1, 1992) |
| On or after July 1, 2002, but before July 1, 2007. | $250,000 | $600,000 | $85,000 |
| On or after July 1, 2007 | $300,000 | $700,000 | $100,000 |