Section 9.10 Waiver of Immunity by Purchase of Insurance

• Library: Local Government Deskbook (2017 Ed.)

G. (§9.10) Waiver of Immunity by Purchase of Insurance

In 1959, when other state legislatures were abolishing sovereign immunity, the Missouri General Assembly passed legislation authorizing municipalities to partially waive sovereign immunity by purchasing liability insurance. Section 71.185, RSMo 2016, allows municipalities to purchase liability insurance covering claims for property damage or personal injuries caused while the municipality is engaged in the exercise of governmental functions. Sovereign immunity is waived to the extent of the insurance coverage.

The term “municipality,” as used in § 71.185, has been narrowly construed. Housing authorities and school districts are not municipalities under the statute and may not waive sovereign immunity by purchasing insurance. State ex rel. St. Louis Hous. Auth. v. Gaertner, 695 S.W.2d 460 (Mo. banc 1985) (distinguishing between municipalities, which can waive immunity by purchasing insurance under § 71.185, and other municipal corporations, which cannot); Beiser v. Parkway Sch. Dist., 589 S.W.2d 277 (Mo. banc 1979).

To plead a cause of action against a municipality for a tort arising out of a governmental function (other than a tort involving condition of...