Risk Management & Tort Defense

During the early 1970s, Montana State Government lost its sovereign immunity. Therefore, the state began to purchase commercial liability insurance to protect itself from third party litigation. The risky nature of state services coupled with the high cost of commercial insurance forced state government and most other public entities to self-insure their liability risks in the mid-1970s.

Subsequent legislation (§2-9-101, MCA through §2-9-305, MCA) authorized the Department of Administration to assess state agencies and universities for the costs associated with defending tort claims and administering commercial insurance and self-insured programs. The Risk Management & Tort Defense Division may, therefore, elect to purchase commercial insurance or self-insure auto, aviation, boilers & machinery, fidelity bond, fine art, liability, and any other risks that are deemed necessary and cost-effective.

Insurance is purchased on a competitive bid basis periodically and is subject to change. Summaries of current insurance coverage may be found on the division's website at http://rmtd.mt.gov/insurance/propertycasualtyinsurance. Agencies seeking new or additional coverage should make a request 60 days prior to the desired effective date of coverage in order to allow enough lead time to evaluate appropriate insurance alternatives and bind coverage.

In order to assure that agency's assets are properly insured, they must be accurately reported to RMTD. Assets may be reported between October 1st and January 15th of each fiscal year through the state property/casualty insurance information system (PCIIS). An exposure reporting contact from each agency has been assigned and trained to report insurable assets on behalf of their agency. To view the list of contacts please click here.