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HB 3432

Changes the amounts for liability insurance and liability limits for tort claims against the state, a political subdivision, or a public entity

2026 Regular Session Introduced by Michael Burton

Raises state/agency tort liability to $5M per occurrence and $2M per person, with inflation adjustments and a court-apportioned sharing if total awards exceed the cap.

Referred: Emerging Issues(H)
#civilprocedure #liability #politicalsubdivisions #statedepartments
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Bill Summary · HB 3432

Bill summary: HB 3432 (2026) – Missouri

Purpose and intent

  • Proposes to increase the liability insurance coverage and statutory liability limits for tort claims against the state, its political subdivisions, and public entities.
  • Adjusts how damages are capped, how apportionment works when multiple claimants exceed limits, and includes inflation adjustments over time.

Key provisions and changes

  • Liability insurance purchasing authority and limits (Section 537.610)

    • The Commissioner of Administration (via the purchasing division) and the governing body of each political subdivision may purchase liability insurance for tort claims against the state or the subdivision.
    • Maximum coverage under such insurance: up to $5 million for all claims arising from a single occurrence; and up to $2 million for any one person in a single accident or occurrence. These amounts are visible replacements for current limits of $2 million and $300,000, respectively.
    • This section clarifies that immunity is waived only to the extent of the insurance coverage or any self-insurance plan adopted by the governing body, and only for purposes covered by the policy.

  • State/public entities’ liability limits (Section 537.610, subsections 2)

    • For claims within the scope of sections 537.600 to 537.650, the state and its public entities’ total liability shall not exceed:
    • $5 million for all claims arising from a single accident or occurrence; and
    • $2 million for any one person in a single accident or occurrence.
    • Excludes workers’ compensation claims (chapter 287).

  • Punitive damages prohibition (Section 537.610, subsection 3)

    • No award for damages against a public entity within the covered scope may include punitive or exemplary damages.

  • Apportionment when totals exceed the limit (Section 537.610, subsection 4)

    • If total awards or settlements across multiple claimants exceed the $5 million cap, any party may seek court apportionment.
    • Each claimant’s share is proportional to the individual award relative to the aggregate awards, but no individual share may exceed $2 million.

  • Inflation adjustment (Section 537.610, subsection 5)

    • The liability limitation shall be adjusted annually (effective January 1) based on the Implicit Price Deflator for Personal Consumption Expenditures (as published by BEA).
    • The Director of the Department of Commerce and Insurance calculates the current value and the Secretary of State publishes it in the Missouri Register. This mechanism operates independently of §536.021.

  • Procedural note (Section 537.610, subsection 6)

    • Claims filed under these provisions are subject to penalties under Supreme Court Rule 55.03 (or its successor).

Who/what is affected

  • State government agencies and departments.
  • Political subdivisions of Missouri (counties, municipalities, and other local entities).
  • Public entities and their insured or self-insured liabilities for tort claims.
  • Claimants asserting tort claims against the state or its political subdivisions within the covered scope.

Timelines and procedural aspects

  • Inflation adjustments occur automatically on January 1 of each year, with values published shortly thereafter.
  • If a multi-claimant award exceeds the new cap, court-ordered apportionment processes may be invoked to determine each claimant’s share.
  • Claims proceeding under these sections are subject to existing rules (e.g., Supreme Court Rule 55.03 penalties).

Practical impact

  • Raises exposure limits from the prior $2 million per occurrence and $300,000 per person to $5 million per occurrence and $2 million per person.
  • Potentially larger settlements or awards against state and political subdivisions if insurance coverage is in place.
  • Provides a formal process to apportion large settlements among multiple claimants.
  • Introduces an automatic inflation-based adjustment, reducing the need for frequent legislative updates.

Compiled from official sources — confirm details with the bill’s official record.

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