Large liability judgments and rising insurance costs are making it harder for California cities to plan and fund vital public services. Under the state’s joint and several liability rules, a city found partly at fault can be required to pay economic damages beyond its share of responsibility when other liable parties cannot pay.
The California Joint Powers Insurance Authority (California JPIA) will examine these challenges during the “Liability Landscape Update for California Cities” session on Thursday, September 24 from 1-2:15 p.m. at the League of California Cities’ (Cal Cities) Annual Conference and Expo.
The panel will feature California JPIA Chief Executive Officer Alex Smith, Duarte Councilmember Margaret Finlay, and Behar Gibbs Savage Paulson LLP Equity Partner Rachel Boden. Lakewood City Manager Thaddeus McCormack will moderate.
The panelists will draw on statewide and national research, including the California Association of Joint Powers Authorities’ Protecting Public Funds Data Project. The analysis examined claims data from nearly 2,000 California public agencies, including cities, counties, special districts and schools, and found increasing liability costs.
For local agencies, higher claim costs can mean increased insurance premiums, larger losses paid directly by the agency and more funds reserved for unresolved litigation. These demands can reduce budget flexibility and leave fewer resources for infrastructure, public safety, parks, recreation and other community priorities.
The discussion will explore how larger claims, jury verdicts and changing public expectations are influencing those costs, along with practical steps cities can take to reduce their exposure through inspections, maintenance and recordkeeping.
The California JPIA leads the Coalition to Protect Community Services, which advocates basing public agencies’ payments for economic damages such as medical expenses and lost earnings on their share of fault.
“California’s local governments are not asking for blanket immunity,” Finlay wrote in a PublicCEO op-ed. “We are merely asking for sound public policy — proportionate liability that is fair to injured parties and provides them with meaningful compensation, while also ensuring that public funds are protected and used for broad public benefit.”
The conference provides a setting for city leaders to examine those ideas together. Through its partnerships with organizations such as Cal Cities, the California JPIA supports professional development and connects its members with peers and specialists who understand municipal operations.
About the Coalition to Protect Community Services
The Coalition to Protect Community Services is a statewide alliance of cities, special districts, transit agencies, and local government organizations working to address the growing fiscal crisis of runaway liability costs. Led by the California Joint Powers Insurance Authority, the coalition advocates for reforms that ensure local governments pay only their actual share of fault, preserving limited taxpayer dollars for the essential public services residents rely on. To learn more, visit cjpia.org/lcc.
About the California JPIA
Providing innovative risk management solutions for its public agency partners for more than 45 years, the California Joint Powers Insurance Authority (California JPIA) is one of the largest municipal self-insurance pools in the state, with more than 125 member cities and other governmental agencies. Members actively participate in shaping the organization to provide important coverage for their operations. The California JPIA provides innovative risk management solutions through a comprehensive portfolio of programs and services, including liability, workers’ compensation, pollution, property, and earthquake coverage, as well as extensive training and loss control services. For more information, please visit the California JPIA’s website at cjpia.org.