FL S1812

Political subdivisions may purchase insurance or self-insure for liabilities at either $5 million per person/$7.5 million per occurrence or $10 million per person/$15 million per occurrence.

Insurers must pay covered liabilities up to policy limits without requiring further legislative action, and self-insured subdivisions must deposit the lesser of the claimant's demand or policy limits into a contingent liability account within 45 days of notice of loss.

Political subdivisions that comply with insurance requirements are only liable for their deductible and cannot be sued for judgments exceeding policy limits, with excess claims treated as either local claim bills or state claims depending on insurance tier.

Counties may purchase umbrella policies to insure municipalities within the county on a pro-rata cost basis, though municipal participation is optional.

Injured parties may pursue judgments exceeding policy limits only if the insurer is found to have acted in bad faith in meeting its policy obligations.