State Liability Coverage for University Employees

Handbook of Operating Procedures 3-1220-PM

State Liability Coverage for University Employees


The University of Texas at Austin

Executive Sponsor: Vice President for Legal Affairs

September 1, 1977



Pursuant to S.B. 37, passed by the 65th Legislature, and signed by the Governor on May 27, 1977 (effective date September 1, 1977):


  1. The State is liable for and will pay:
  1. Actual damages up to $100,000 per person and $300,000 per occurrence.
  1. Property damage up to $10,000 per occurrence; and
  1. Court costs and attorney's fees adjudged against employees of The University of Texas at Austin for acts or omissions within the course and scope of their employment for the University provided:
  1. Such acts or omissions are negligent (i.e., an unintentional breach of a non-contractual duty); or
  1. Such acts or omissions amount to a deprivation of state or federal constitutional rights (except for bad faith actions).
  1. The Act provides for defense by the Attorney General, conditioned upon service of process on him, or delivery of process to him by the person served within ten days after service.
  1. Under the Act, the State is not liable to the extent that damages are recoverable under a contract of insurance or under a plan of self-insurance authorized by statute (e.g., the System Plan for Professional Malpractice Self-Insurance).


    In order to effectively implement the provisions of this Act, all employees of the University shall immediately notify the Office of the President of notice of all claims and lawsuits. The Office of the President shall inform the Office of General Counsel, which in turn will notify the Attorney General. At all events, notice must be given to the Attorney General within ten (10) days after service of citation.


Previously PM 7.401