§ 1.7.6.2 PUBLIC SECTOR EMPLOYEE INDEMNIFICATION.

• Jurisdiction: Arizona

§ 1.7.6.2 Public Sector Employee Indemnification.The primary Arizona statute that governs the state's obligation to indemnify public sector employees is A.R.S. § 41-621, which requires the Department of Administration to purchase insurance against loss for the state and its departments, agencies, boards and commissions "and all officers, agents and employees thereof" and others who may qualify "against liability for acts or omissions of any nature while acting in authorized governmental or proprietary capacities and in the course and scope of employment or authorization except as prescribed by this chapter."⁶⁹ The exceptions to this mandated insurance coverage are: (1) losses that arise out of or are directly attributable to the insured's commission of a felony, unless the state knew of the person's propensity for that action, and (2) losses that arise out of a contractual breach.⁷⁰

The statute also limits and defines what the Department must pay or may pay in damages on behalf of a state officer, agent or employee. The Department "shall pay, on...