Tennessee Code Annotated

Tenn. Code Ann. § 29-20-403 (2026)

Liability insurance authorized - Compensation for injury - Limits - Limits of liability for self-insuring entities

✓ current as of May 2026

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(a) Any governmental entity may purchase insurance to cover its liability under this chapter.

(b) Every policy or contract of insurance purchased by a governmental entity as authorized by this chapter shall provide:
- (1)
  - (A) Minimum limits of not less than forty thousand dollars ($40,000) for bodily injury or death of any one (1) person in any one (1) accident and not less than eighty thousand dollars ($80,000) for bodily injury or death of any two (2) or more persons in any one (1) accident; provided, that in cases arising out of the ownership, maintenance, and use of automobiles, the minimum limit shall be not less than one hundred thousand dollars ($100,000) because of bodily injury or death of one (1) person in any one (1) accident, and to a limit of not less than three hundred thousand dollars ($300,000) because of bodily injury or death of two (2) or more persons in any one (1) accident, and to a limit of not less than fifty thousand dollars ($50,000) for injury to or destruction of property of others in any one (1) accident. In the event the governmental entity is unable to purchase insurance to cover its obligations hereunder, except through an assigned risk pool, then for purposes of § 29-20-311 the limits of liability shall be twenty thousand dollars ($20,000) for injury to any one (1) person resulting from one (1) accident and forty thousand dollars ($40,000) for all injuries resulting from one (1) accident with a limit of ten thousand dollars ($10,000) for property damages resulting from any one (1) accident. If insurance is not purchased through an assigned risk pool then the greater limits above apply; and
  - (B) Subdivision (b)(1)(A) applies only to actions arising before July 1, 1987;
- (2)
  - (A) Minimum limits of not less than one hundred thirty thousand dollars ($130,000) for bodily injury or death of any one (1) person in any one (1) accident, occurrence or act and not less than three hundred fifty thousand dollars ($350,000) for bodily injury or death of all persons in any one (1) accident, occurrence or act, and in cases arising out of the ownership, maintenance and use of automobiles to a limit of not less than fifty thousand dollars ($50,000) for injury to or destruction of property of others in any one (1) accident, occurrence or act. This subdivision (b)(2)(A) applies to any action arising on or after July 1, 1987, but before July 1, 2002; and
  - (B) Minimum limits of not less than fifty thousand dollars ($50,000), except as provided otherwise in this section, for injury to or destruction of property of others in any one (1) accident;
- (3) Minimum limits of not less than two hundred fifty thousand dollars ($250,000) for bodily injury or death of any one (1) person in any one (1) accident, occurrence or act, and not less than six hundred thousand dollars ($600,000) for bodily injury or death of all persons in any one (1) accident, occurrence or act, and eighty-five thousand dollars ($85,000) for injury or destruction of property of others in any one (1) accident, occurrence or act. This subdivision (b)(3) shall apply to any action arising on or after July 1, 2002, but before July 1, 2007; and
- (4) Minimum limits of not less than three hundred thousand dollars ($300,000) for bodily injury or death of any one (1) person in any one (1) accident, occurrence or act, and not less than seven hundred thousand dollars ($700,000) for bodily injury or death of all persons in any one (1) accident, occurrence or act, and one hundred thousand dollars ($100,000) for injury or destruction of property of others in any one (1) accident, occurrence or act. This subdivision (b)(4) shall apply to any action arising on or after July 1, 2007.

(c) Any governmental entity electing to self-insure its liability shall have the same limits of liability as if insurance had been purchased.

Acts 1973, ch. 345, § 24; T.C.A., § 23-3327; Acts 1982, ch. 950, §§ 1, 2; 1987, ch. 405, §§ 5, 6; 1992, ch. 821, § 1; 1999, ch. 377, § 1; 2001, ch. 424, §§ 1, 2.

Notes of Decisions

Cited in 50 cases (4 in the last 5 years), 1981–2025 · leading case: Hill v. City of Germantown, 31 S.W.3d 234 (Tenn. 2000).

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Hill v. City of Germantown, 31 S.W.3d 234 (Tenn. 2000). · cites it 9× “Under our construction of these statutes, the City’s immunity has been removed and Plaintiffs may recover as provided by Tenn.Code Ann. § 29-20-403 against the City.”

Coburn v. City of Dyersburg, 774 S.W.2d 610 (Tenn. Ct. App. 1989). · cites it 15× “DES and City joined in another joint motion for partial summary judgment asserting in accordance with the provisions of T.C.A. §§ 29-20-403 and 404 they were not liable to plaintiff for any judgment in excess of the statutory limit of $40,000 per person.”

Erwin v. Rose, 980 S.W.2d 203 (Tenn. Ct. App. 1998). · cites it 9× “The court found the damages to be in excess of $1,000,000 but limited the county’s liability to $130,000 under Tenn. Code Ann. § 29-20-403 (2)(A). Pursuant to Tenn.”

McGaughy v. City of Memphis, 823 S.W.2d 209 (Tenn. Ct. App. 1991). · cites it 11× “Defendants contend that under the GTLA in effect at the time of the accident, its liability is limited to the maximum amount set out in T.C.A. § 29-20-403 (Supp.1984) plus any amount of the judgment exceeding the $750,000 up to the $1,000,000.”

Swafford v. City of Chattanooga, 743 S.W.2d 174 (Tenn. Ct. App. 1987). · cites it 5× “Although § 29-20-403 refers only to “bodily injury or death” in setting the minimum *179 limits of liability coverage under the Act, we think that the specific removal of immunity upon which recovery here rests — that of removal of immunity for injury from unsafe streets and…”

Hawks v. City of Westmoreland, 960 S.W.2d 10 (Tenn. 1997). · cites it 2× “See,Chapter 1200-5-1, Regulations for Public Water Systems and Drinking Water Quality, Division of Water Supply, Tennessee Department of Environment and Conservation. 3 . The trial court found the plaintiffs had sustained real and personal property damage in the amount of…”

Brooks v. Memphis & Shelby Cnty. Hosp. Auth., 717 S.W.2d 292 (Tenn. Ct. App. 1986). · cites it 6× “Under T.C.A. 29-20-403, which sets the limits, Brother Sellers, the Court’s got to take the position, as it previously did from reading this statute, that this act — that the legislature intended back in 1978 that the entire liability of the County for injuries arising out of…”

York v. Sevier Cnty. Ambulance Auth., 8 S.W.3d 616 (Tenn. 1999). · cites it 2× “Tenn.Code Ann. §§ 29-20-403, 404 (Supp.1999).”

Chambers v. City of Chattanooga, 71 S.W.3d 281 (Tenn. Ct. App. 2001). · cites it 2× “(c) No claim may be brought against an employee or judgment entered against an employee for injury proximately caused by an act or omission of the employee within the scope of the employee’s employment for which the governmental entity is immune in any amount in excess of the…”

Mosley v. Metro. Gov't of Nashville & Davidson Cnty., 155 S.W.3d 119 (Tenn. Ct. App. 2004). · cites it 2× “This negligence case is governed by the restricted abrogation of governmental immunity provided by the Tennessee Govern *122 mental Tort Liability Act Tenn.Code Ann.”

Dennis Michael Harris v. Mickey Deanne Haynes, 445 S.W.3d 143 (Tenn. 2014). “reate and maintain a special fund, or to enter into an agreement, as authorized in this section for the purpose of insuring against the liabilities created by this chapter, shall be deemed to be electing to self-insure against the liabilities established in this chapter and…”

Simpson v. Sumner Cnty., 669 S.W.2d 657 (Tenn. Ct. App. 1983). · cites it 2× “Again, in T.C.A. § 29-20-403 we find that the legislature expressly authorizes governmental entities that come within the purview of the act to purchase “insurance to cover its liability” thereunder.”

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— Tenn. Code Ann. § 29-20-403(B)(2)(A) — 2 cases

Lemons v. Cloer, 206 S.W.3d 60 (Tenn. Ct. App. 2006).

Erwin v. Rose, 980 S.W.2d 203 (Tenn. Ct. App. 1998). “The court found the damages to be in excess of $1,000,000 but limited the county’s liability to $130,000 under Tenn. Code Ann. § 29-20-403 (2)(A). Pursuant to Tenn.”

— Tenn. Code Ann. § 29-20-403(a) — 1 case

Swafford v. City of Chattanooga, 743 S.W.2d 174 (Tenn. Ct. App. 1987). “Although § 29-20-403 refers only to “bodily injury or death” in setting the minimum *179 limits of liability coverage under the Act, we think that the specific removal of immunity upon which recovery here rests — that of removal of immunity for injury from unsafe streets and…”

— Tenn. Code Ann. § 29-20-403(b) — 1 case

Brooks v. Memphis & Shelby Cnty. Hosp. Auth., 717 S.W.2d 292 (Tenn. Ct. App. 1986). “Under T.C.A. 29-20-403, which sets the limits, Brother Sellers, the Court’s got to take the position, as it previously did from reading this statute, that this act — that the legislature intended back in 1978 that the entire liability of the County for injuries arising out of…”

— Tenn. Code Ann. § 29-20-403(b)(2)(A) — 6 cases

Morris Slutsky, et ux v. City of Chattanooga, 34 S.W.3d 467 (Tenn. Ct. App. 2000).

Katy Wilson v. Dickson Cnty. (Tenn. Ct. App. 2001).

Ray Gabrielle Cox v. Anderson Cnty. High. Dept. & Anderson Cnty., Tennessee - Concurring (Tenn. Ct. App. 2000).

Joann Mooney v. Joe Sneed (Tenn. Ct. App. 1999).

Susan Todd/State v. Weakley Co. (Tenn. Ct. App. 1998).

— Tenn. Code Ann. § 29-20-403(b)(2)(B) — 1 case

Richard Deberry v. Lexington Elec. Sys. (Tenn. Ct. App. 1997).

— Tenn. Code Ann. § 29-20-403(b)(l)(A) — 1 case

Bowers v. City of Chattanooga, 855 S.W.2d 583 (Tenn. Ct. App. 1992).

— Tenn. Code Ann. § 29-20-403(c) — 2 cases

McGaughy v. City of Memphis, 823 S.W.2d 209 (Tenn. Ct. App. 1991). “Defendants contend that under the GTLA in effect at the time of the accident, its liability is limited to the maximum amount set out in T.C.A. § 29-20-403 (Supp.1984) plus any amount of the judgment exceeding the $750,000 up to the $1,000,000.”

Cates v. Elec. Power Bd. of Metro. Gov., 655 S.W.2d 166 (Tenn. Ct. App. 1983).

— Tenn. Code Ann. § 29-20-403(d) — 1 case

Darin Shaffer v. Shelby Co. (Tenn. Ct. App. 2001).

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