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Pennsylvania Consolidated Statutes

42 Pa. Cons. Stat. § 8564 (2026)

 Liability insurance and self-insurance.

✓ current as of May 2026
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§ 8564.  Liability insurance and self-insurance.

(a)  Purchase of liability insurance.--A local agency may purchase insurance on itself or its employees for any liability arising from the performance of their duties within the scope of their employment.

(b)  Employment of risk manager.--A local agency may employ a professional risk manager whose responsibility it shall be to administer a public liability insurance program for the local agency and initiate any risk management program for the local agency and its employees.

(c)  Joint action by local agency.--Any two or more local agencies may join together, enter into any agreements or jointly contract for the development of a group risk management program either through the provisions of the act of July 12, 1972 (P.L.762, No.180), referred to as the Intergovernmental Cooperation Law, or any other applicable statute. Any two or more local agencies may join together, enter into any agreements or jointly contract for the purchasing of public liability insurance. Any two or more local agencies may pool their public liability insurance risks through the provisions of the act of July 12, 1972 (P.L.762, No.180) or any other applicable statute.

(d)  Insurance pooling and coinsurance.--The pooling of insurance risks, reserves, claims or losses shall not be construed to be transacting insurance nor otherwise subject local agencies to the provisions of statutes regulating insurance or insurance companies. Local agencies may be coinsured under a master policy and the total premium may be prorated among the local agencies. Any county may undertake a group risk management program or public liability insurance program on behalf of itself and any other local agencies covered by this subchapter within the county that wish to voluntarily participate in the programs.

(e)  Self-insurance.--Any local agency may self-insure which must be funded on an annual basis by appropriations to establish a reserve for self-insurance purposes.

 

References in Text.  The act of July 12, 1972, P.L.762, No.180, referred to as the Intergovernmental Cooperation Law, referred to in subsec. (c), was repealed by the act of December 19, 1996, P.L.1158, No.177. The subject matter is now contained in Subchapter A of Chapter 23 of Title 53 (Municipalities Generally).

Cross References.  Section 8564 is referred to in sections 5602, 8002 of Title 53 (Municipalities Generally).

Notes of Decisions
Cited in 3 cases, 1984–2014 · leading case: Zauflik, A., Aplt. v. Pennsbury Sch. Dist., 104 A.3d 1096 (Pa. 2014).
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Zauflik, A., Aplt. v. Pennsbury Sch. Dist., 104 A.3d 1096 (Pa. 2014). · cites it 2× “42 Pa.C.S. § 8564 (liability insurance and self-insurance).”
Supervisors of Lewis Twp. v. Employers Mut. Cas. Co., 523 A.2d 719 (Pa. 1987). · cites it 6× “To hold otherwise would be contrary to the language of 42 Pa.C.S. § 8564, and its precursor Section 703 of the Political Subdivision Tort Claims Act, authorizing a township to purchase insurance on itself or its employees for any liability arising from the performance of their…”
Employers Mut. Cas. Co. v. Supervisors of Lewis, 477 A.2d 607 (Pa. Commw. Ct. 1984). “A similar provision is now found in Section 8564(a) of the Judicial Code, 42 Pa. C. S. §8564(a). Section 8564(a) of tbe Judicial Code similarly provides that a local agency may insure its employees for any liability “arising from tbe performance of tbeir duties within tbe scope…”
42 Pa. Cons. Stat. § 8564(a): 2 cases
Supervisors of Lewis Twp. v. Employers Mut. Cas. Co., 523 A.2d 719 (Pa. 1987). “To hold otherwise would be contrary to the language of 42 Pa.C.S. § 8564, and its precursor Section 703 of the Political Subdivision Tort Claims Act, authorizing a township to purchase insurance on itself or its employees for any liability arising from the performance of their…”
Employers Mut. Cas. Co. v. Supervisors of Lewis, 477 A.2d 607 (Pa. Commw. Ct. 1984). “A similar provision is now found in Section 8564(a) of the Judicial Code, 42 Pa. C. S. §8564(a). Section 8564(a) of tbe Judicial Code similarly provides that a local agency may insure its employees for any liability “arising from tbe performance of tbeir duties within tbe scope…”
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