                                 CODE OF VIRGINIA

RISK MANAGEMENT PLAN FOR PUBLIC LIABILITY (§ 2.2-1837)

A. Subject to the approval of the Governor, the Division shall establish a risk
management plan, which may be purchased insurance, self-insurance or a
combination of self-insurance and purchased insurance to provide:

   1. Protection against liability imposed by law for damages resulting from any
   claim:
   				a. Made against any state department, agency, institution, board,
   commission, officer, agent, or employee for acts or omissions of any nature
   while acting in an authorized governmental or proprietary capacity and in the
   course and scope of employment or authorization;
   				b. Made against participants, other than professional counsel, in student
   disciplinary proceedings at public institutions of higher education for
   nonmalicious acts or omissions of any nature in the course and scope of
   participation in the proceedings; or
   				c. Resulting from an authorized indemnification agreement entered into by
   a public institution of higher education in the Commonwealth in accordance
   with this subsection.
   				A public institution of higher education in the Commonwealth may execute
   an indemnification agreement if the Governor (i) considers in advance of
   execution (a) the institution&#8217;s analysis of the relevant public benefit
   and risk of liability, (b) the Division&#8217;s charge to be assessed against
   the institution for providing insurance or self-insurance coverage for the
   claims resulting from the indemnification agreement, and (c) the Office of the
   Attorney General&#8217;s comments and (ii) determines that execution is
   necessary to further the public&#8217;s best interests.
   				The indemnification agreement shall limit the institution&#8217;s total
   liability to a stated dollar amount and shall notify the contractor that the
   full faith and credit of the Commonwealth are not pledged or committed to
   payment of the institution&#8217;s obligation under the agreement. However, no
   such institution shall be authorized to enter into an indemnification
   agreement in accordance with this subsection to indemnify any person or entity
   against damages arising from a sponsored project conducted by such
   institution. For the purposes of this section, a &#8220;sponsored
   project&#8221; is a research, instruction, or service project conducted at a
   public institution of higher education in the Commonwealth pursuant to a
   grant, cooperative agreement, or other contract;

   2. Protection against tort liability and incidental medical payments arising
   out of the ownership, maintenance or use of buildings, grounds or properties
   owned or leased by the Commonwealth or used by state employees or other
   authorized persons in the course of their employment;

   3. For the payment of attorney fees and expenses incurred in defending such
   persons and entities concerning any claim that (i) arises from their
   governmental employment or authorization, that (ii) arises from their
   participation in such student disciplinary proceedings, or (iii) is described
   in any such indemnification agreement, where the Division is informed by the
   Attorney General&#8217;s office that it will not provide a defense due to a
   conflict or other appropriate reason; and

   4. For the payment of attorney fees and expenses awarded to any individual or
   entity against the Commonwealth, or any department, agency, institution,
   board, commission, officer, agent, or employee of the Commonwealth for acts or
   omissions of any nature while acting in an authorized governmental or
   proprietary capacity, or in reliance upon any constitutional provision, or law
   of the Commonwealth. It is the obligation of the Division to provide for such
   indemnification regardless of whether there is a request for or an award of
   damages associated with the award of such fees and expenses.
   				a. As a condition of coverage for the payment of attorney fees and
   expenses, the department, agency, institution, board, commission, officer,
   agent, or employee of the Commonwealth shall (i) promptly notify the Division
   of the commencement of any claim, suit, action or other proceeding prior to
   its settlement, (ii) provide the Division with full nonprivileged information
   on the matter as requested, and (iii) permit the Division to participate in
   the investigation of such claim, suit, action or other proceeding. Failure to
   promptly notify the Division or to reasonably cooperate may, at the
   Division&#8217;s discretion, result in no payment or a reduced payment being
   made.
   				b. The Division shall set the premium and administrative costs to be paid
   to it for providing payment of attorney fees and expenses awarded pursuant to
   this section. The premiums and administrative costs set by the Division shall
   be payable in the amounts, at the time and in the manner that the Division in
   its sole discretion requires. Premiums and administrative costs shall be set
   to best ensure the financial stability of the plan.

B. Any risk management plan established pursuant to this section shall provide
for the establishment of a trust fund or contribution to the State Insurance
Reserve Trust Fund for the payment of claims covered under the plan. The funds
shall be invested as provided in &#xA7; 2.2-1806 and interest shall be added to
the fund as earned. The trust fund shall also provide for payment of
administrative costs, contractual costs, and other expenses related to the
administration of such plan.

C. The risk management plan for public liability shall be submitted to the
Governor for approval prior to implementation.

D. The risk management plan established pursuant to this section shall provide
protection against professional liability imposed by law as provided in &#xA7;
24.2-121, resulting from any claim made against a local electoral board, any of
its members, any general registrar, or any employee of or paid deputy to a
registrar for acts or omissions of any nature while acting in an authorized
governmental or proprietary capacity and in the course and scope of employment
or authorization, regardless of whether or not the civil action requests
monetary damages, subject to the limitations of the risk management plan.

E. The risk management plan established pursuant to this section shall provide
protection against any claim made against any soil and water conservation
district, director, officer, agent or employee thereof, (i) arising out of the
ownership, maintenance or use of buildings, grounds or properties owned, leased
or maintained by any such district or used by district employees or other
authorized persons in the course of their employment or (ii) arising out of acts
or omissions of any nature while acting in an authorized governmental or
proprietary capacity and in the course and scope of employment or authorization.

F. The risk management plan established pursuant to this section shall provide
protection against professional liability imposed by law for damages resulting
from any claim made against a local school board selection commission or local
school board selection commission members for acts or omissions of any nature
while acting in an authorized governmental or proprietary capacity and in the
course and scope of authorization, subject to the limitations of the risk
management plan.

G. The risk management plan established pursuant to this section shall provide
coverage for any matter that involves or could involve an action or proceeding
against a judge, the nature of which is designed to determine whether discipline
or other sanction of the judge for malfeasance or misfeasance is appropriate or
to otherwise determine the fitness of the judge to hold office or to continue
his employment. No coverage or indemnification shall be made pursuant to this
subsection when the Supreme Court of Virginia finds that the judge should be
censured or removed from office pursuant to &#xA7; 10 of Article VI of the
Constitution of Virginia or statutes enacted pursuant thereto.

H. The risk management plan established pursuant to this section shall provide
protection against claims made against chaplains by persons incarcerated in a
state correctional facility or a juvenile correctional center, including a
facility operated pursuant to the Corrections Private Services Act (&#xA7;
53.1-261 et seq.) arising out of services provided by the chaplains to such
incarcerated persons, regardless of whether such services were provided on a
volunteer basis or for compensation. For the purposes of this subsection,
chaplains shall include only those persons who, at the time any claim may arise,
were acting pursuant to, and in compliance with, an agreement between the
chaplain or an organization to which the chaplain belongs and the Department of
Corrections, the Department of Juvenile Justice, or an operator of a facility
operated pursuant to the Corrections Private Services Act.

HISTORY: 1980, c. 488, § 2.1-526.8; 1982, c. 318; 1986, cc. 554, 558; 1988, cc.
763, 780, 848; 1990, c. 484; 1995, c. 794; 2000, cc. 618, 632, § 2.1-191.11;
2001, c. 844; 2002, c. 765; 2003, c. 828; 2005, cc. 492, 548; 2011, c. 359;
2012, c. 366; 2022, c. 140; 2025, c. 337.