Risk Management Fund

Liability coverage for the State of North Dakota, its agencies and employees is provided by the Risk Management Fund. The State Tort Claims Act, NDCC 32-12.2, governs the administration of the Risk Management Fund and claims against the state and state employees for personal injury, death, or property damage caused by the state or a state employee acting within the scope of the employee’s employment.

Covered Damages 

The Risk Management Fund will pay money damages for:

  • an injury caused by the negligence or wrongful act or omission of a state employee acting within the employee’s scope of employment which the employee would be personally liable to pay a claimant under state law, and
  • an injury caused from some condition or use of tangible property under circumstances in which the state, if it were a private person, would be liable to the claimant. 

Coverage includes claims for damages resulting from an occurrence, accident, wrongful act, error or omission or claim made because of bodily injury, personal injury, property damage, professional liability, or public officials’ professional liability or any combination thereof. The Risk Management Fund will not pay money damages for those claims excluded under NDCC 32-12.2 or other applicable law.

Liability Limits 

The amount of money damages the Risk Management Fund may pay is limited to a total of $250,000 per person and $1,000,000 per occurrence. The Risk Management Fund will not be held liable or indemnify a state employee held liable for punitive or exemplary damages.

Legal Defense  

The Risk Management Fund also provides legal defense of any claim brought against the state under NDCC ch. 32-12.2 or brought against a state employee acting within the scope of employment at no cost to the employee.


NDCC 32-12.2-04 provides that a claim against the state or a state employee for an injury or damages must be presented in writing to the Director of the Office of Management and Budget within 180 days after the alleged injury or property damage was discovered. The claim can be made by completing and submitting SFN 50552 State Risk Management Fund Notice of Claim form. The Risk Management Fund is not insurance. It is governed by the legal requirements established in the State Tort Claims Act, NDCC 32-12.2, and any claims paid must be authorized under these requirements. 

These topics are discussed in more detail in the Risk Management Manual.

Risk Management Fund Documents