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Vehicle Liability

The Risk Management Fund’s coverage includes liability arising out of the use of State-owned, State-rented or State-leased vehicles, but only to the extent that the use is within the scope of the employee’s employment. Private use of any of these vehicles is not covered by the Risk Management Fund and will be the employee’s personal responsibility.

State Fleet Vehicles: As of July 1, 1997, vehicles titled to the North Dakota Department of Transportation will be covered by the Risk Management Fund, pursuant to the provisions of the Tort Claims Act.

Rental Vehicles: Liability and comprehensive and collision coverage for vehicles rented short-term when traveling on official state business. 

  • OMB Fiscal Policy 518 provides that agencies must use state contracts that include liability coverage and damage waiver as part of the base rental rate. See State Cooperative Contract for Rental Vehicles (2 pages) (113 kb PDF). 
  • Risk Management Guidelines are that agencies purchase the additional damage waiver and liability coverage when renting a vehicle other than in bordering or closely bordering states.  See Vehicle Coverage FAQs for more information.

Courtesy/Leased Vehicles: Liability and comprehensive and collision coverage for courtesy/leased vehicles when traveling on official state business.


NDUS Guide to Authorized Use of State Fleet Vehicles


Distracted Driving is any activity that could divert a person's attention away from the primary task of driving.  All distractions endanger driver, passenger, and bystander safety. These types of distractions include: texting; using a cell phone or smartphone; eating and drinking; talking to passengers; grooming, reading, including maps; using a navigation system; watching a video; adjusting a radio, cd player, or mp3 player. In a June 2012, the U.S. Department of Transportation (USDOT) released the Blueprint for Ending Distracted Driving, a comprehensive plan for addressing the distracted driving epidemic. 

Consistent with the USDOT’s efforts, Risk Management encourages agencies to voluntarily adopt and implement distracted driving policies that restrict the use of handheld cell phones while driving on state business, except as strictly necessary to fulfill approved and designated critical agency functions or in life/safety emergency situations. Such policies must require more than is already prohibited by law in N.C.C.C. § 39-08-23.  Agencies that choose to adopt distracted driving policies that restrict the use of handheld cell phones consistent with that agency’s operations and critical business needs will be eligible to receive a discount on its Risk Management contribution. A sample policy statement is available through Risk Management.

Below are some direct links to materials and numerous resources available on the risks and facts of distracted driving: