In any suit for "negligence" or "deprivation of a right, privilege, or immunity secured by the constitution of this state of the United States," the State will pay any damages, court costs, and/or attorney's fees awarded against you, up to: $100,000 per claimant, $300,000 per occurrence, $10,000 per occurrence for property damage.
The State will not pay if:
your actions are held to have been "willful or wrongful;"
your actions are held to constitute "gross negligence;" or,
your actions are found to have been in "bad faith."
These terms have similar (but imprecise) meanings:
"Gross negligence" means "reckless disregard" for, or "callous indifference" to the plaintiff's rights.
"Bad faith" usually means you maliciously intended to harm the plaintiff. It is more than merely the lack of "good faith."
"Willful" means you consciously intended the harmful consequences of your actions.
"Punitive" or "exemplary" damages can only be awarded if the judge or jury concludes that you acted with "gross negligence" or in "bad faith." Therefore an award of punitive damages is an implicit finding of bad faith or gross negligence, which could disqualify you from indemnification.
Even if there is a finding of bad faith or gross negligence, the State will still indemnify you if the Attorney General determines that "indemnification is in the interest of the state." If the final judgment against you exceeds $100,000 per claimant, the Attorney General will attempt to negotiate a settlement with the plaintiff for a lower amount. The Attorney General does provide an attorney to represent you, and you are also afforded certain immunities in your status as a state employee.
The University has very limited insurance coverage above and beyond state indemnity. Fleet vehicle accidents are one instance where University insurance may cover you. The University may also have some limited coverage for employees through its Directors and Officers insurance policy. Your homeowner's insurance policy may provide some coverage for liability incurred in the course of your official duties, but you must check with your carrier. Many professional associations also offer low cost liability coverage for your professional activities. Whether or not you wish to purchase additional insurance beyond the state indemnification is a personal decision. If you seek state indemnity, the lawyer provided by your insurance company is "second chair" to the Attorney General.
This information should be helpful in understanding your liability coverage for the rare instance where a lawsuit is filed against you in the course and scope of your job.