Pennsylvania Statutes Title 42 Pa.C.S.A. Judiciary and Judicial Procedure § 8564. Liability insurance and self-insurance

(a) Purchase of liability insurance.--A local agency may purchase insurance on itself or its employees for any liability arising from the performance of their duties within the scope of their employment.

(b) Employment of risk manager.--A local agency may employ a professional risk manager whose responsibility it shall be to administer a public liability insurance program for the local agency and initiate any risk management program for the local agency and its employees.

(c) Joint action by local agency.--Any two or more local agencies may join together, enter into any agreements or jointly contract for the development of a group risk management program either through the provisions of the act of July 12, 1972 (P.L. 762, No. 180), referred to as the Intergovernmental Cooperation Law,  1 or any other applicable statute. Any two or more local agencies may join together, enter into any agreements or jointly contract for the purchasing of public liability insurance. Any two or more local agencies may pool their public liability insurance risks through the provisions of the act of July 12, 1972 (P.L. 762, No. 180) or any other applicable statute.

(d) Insurance pooling and coinsurance.--The pooling of insurance risks, reserves, claims or losses shall not be construed to be transacting insurance nor otherwise subject local agencies to the provisions of statutes regulating insurance or insurance companies. Local agencies may be coinsured under a master policy and the total premium may be prorated among the local agencies. Any county may undertake a group risk management program or public liability insurance program on behalf of itself and any other local agencies covered by this subchapter within the county that wish to voluntarily participate in the programs.

(e) Self-insurance.--Any local agency may self-insure which must be funded on an annual basis by appropriations to establish a reserve for self-insurance purposes.