Florida Senate - 2025 SB 618 By Senator McClain 9-00434A-25 2025618__ 1 A bill to be entitled 2 An act relating to community-based care lead agency 3 and subcontractor liability; amending s. 409.993, 4 F.S.; revising the minimum per occurrence and 5 aggregate limit amounts of general liability insurance 6 coverage that must be obtained as a part of certain 7 contracts; reducing the limit on net economic damages 8 in tort actions brought against community-based care 9 lead agencies or employees; providing that a 10 community-based care lead agency and its 11 subcontractors are not liable for certain claims and 12 judgments arising out of a given incident or 13 occurrence when such claims or judgments exceed a 14 specified aggregate amount; providing a limitation on 15 attorney fees; deleting provisions requiring an annual 16 increase in conditional limitations on damages; 17 providing an effective date. 18 19 Be It Enacted by the Legislature of the State of Florida: 20 21 Section 1.Paragraph (a) of subsection (2), paragraph (a) 22 of subsection (3), and subsection (4) of section 409.993, 23 Florida Statutes, are amended to read: 24 409.993Lead agencies and subcontractor liability. 25 (2)LEAD AGENCY LIABILITY. 26 (a)Other than an entity to which s. 768.28 applies, an 27 eligible community-based care lead agency, or its employees or 28 officers, except as otherwise provided in paragraph (b), shall, 29 as a part of its contract, obtain a minimum of $500,000 $1 30 million per occurrence with a policy period aggregate limit of 31 $1 $3 million in general liability insurance coverage. The lead 32 agency must also require that staff who transport client 33 children and families in their personal automobiles in order to 34 carry out their job responsibilities obtain minimum bodily 35 injury liability insurance in the amount of $100,000 per person 36 per any one automobile accident, and subject to such limits for 37 each person, $300,000 for all damages resulting from any one 38 automobile accident, on their personal automobiles. In lieu of 39 personal motor vehicle insurance, the lead agencys casualty, 40 liability, or motor vehicle insurance carrier may provide 41 nonowned automobile liability coverage. This insurance provides 42 liability insurance for an automobile that the lead agency uses 43 in connection with the lead agencys business but does not own, 44 lease, rent, or borrow. This coverage includes an automobile 45 owned by an employee of the lead agency or a member of the 46 employees household but only while the automobile is used in 47 connection with the lead agencys business. The nonowned 48 automobile coverage for the lead agency applies as excess 49 coverage over any other collectible insurance. The personal 50 automobile policy for the employee of the lead agency shall be 51 primary insurance, and the nonowned automobile coverage of the 52 lead agency acts as excess insurance to the primary insurance. 53 The lead agency shall provide a minimum limit of $1 million in 54 nonowned automobile coverage. In a tort action brought against 55 such a lead agency or employee, net economic damages are shall 56 be limited to $1 $2 million per liability claim and $200,000 per 57 automobile claim, including, but not limited to, past and future 58 medical expenses, wage loss, and loss of earning capacity, 59 offset by any collateral source payment paid or payable. In any 60 tort action brought against a lead agency, noneconomic damages 61 are shall be limited to $400,000 per claim. The lead agency is 62 not liable for any claim or judgment, or any portion thereof, 63 which, when totaled with all other claims or judgments paid by 64 the lead agency or its subcontractors or their officers or 65 employees arising out of the same incident or occurrence, 66 exceeds $1.5 million. A claims bill may be brought on behalf of 67 a claimant pursuant to s. 768.28 for any amount exceeding the 68 limits specified in this paragraph. Any offset of collateral 69 source payments made as of the date of the settlement or 70 judgment must shall be in accordance with s. 768.76. The lead 71 agency is not liable in tort for the acts or omissions of its 72 subcontractors or the officers, agents, or employees of its 73 subcontractors. 74 (3)SUBCONTRACTOR LIABILITY. 75 (a)A subcontractor of an eligible community-based care 76 lead agency that is a direct provider of foster care and related 77 services to children and families, and its employees or 78 officers, except as otherwise provided in paragraph (b), must, 79 as a part of its contract, obtain a minimum of $500,000 $1 80 million per occurrence with a policy period aggregate limit of 81 $1 $3 million in general liability insurance coverage. The 82 subcontractor of a lead agency must also require that staff who 83 transport client children and families in their personal 84 automobiles in order to carry out their job responsibilities 85 obtain minimum bodily injury liability insurance in the amount 86 of $100,000 per person in any one automobile accident, and 87 subject to such limits for each person, $300,000 for all damages 88 resulting from any one automobile accident, on their personal 89 automobiles. In lieu of personal motor vehicle insurance, the 90 subcontractors casualty, liability, or motor vehicle insurance 91 carrier may provide nonowned automobile liability coverage. This 92 insurance provides liability insurance for automobiles that the 93 subcontractor uses in connection with the subcontractors 94 business but does not own, lease, rent, or borrow. This coverage 95 includes automobiles owned by the employees of the subcontractor 96 or a member of the employees household but only while the 97 automobiles are used in connection with the subcontractors 98 business. The nonowned automobile coverage for the subcontractor 99 applies as excess coverage over any other collectible insurance. 100 The personal automobile policy for the employee of the 101 subcontractor shall be primary insurance, and the nonowned 102 automobile coverage of the subcontractor acts as excess 103 insurance to the primary insurance. The subcontractor shall 104 provide a minimum limit of $1 million in nonowned automobile 105 coverage. In a tort action brought against such subcontractor or 106 employee, net economic damages are shall be limited to $1 $2 107 million per liability claim and $200,000 per automobile claim, 108 including, but not limited to, past and future medical expenses, 109 wage loss, and loss of earning capacity, offset by any 110 collateral source payment paid or payable. In a tort action 111 brought against such subcontractor, noneconomic damages are 112 shall be limited to $400,000 per claim. The subcontractor of a 113 lead agency is not liable for any claim or judgment, or any 114 portion thereof, which, when totaled with all other claims or 115 judgments paid by the lead agency or its subcontractors or their 116 officers or employees arising out of the same incident or 117 occurrence, exceeds $1.5 million. A claims bill may be brought 118 on behalf of a claimant pursuant to s. 768.28 for any amount 119 exceeding the limits specified in this paragraph. Any offset of 120 collateral source payments made as of the date of the settlement 121 or judgment must shall be in accordance with s. 768.76. 122 (4)ATTORNEY FEES.An attorney may not charge, demand, 123 receive, or collect for services rendered fees in excess of 25 124 percent of any such settlement or judgment LIMITATIONS ON 125 DAMAGES.The Legislature is cognizant of the increasing costs of 126 goods and services each year and recognizes that fixing a set 127 amount of compensation has the effect of a reduction in 128 compensation each year. Accordingly, the conditional limitations 129 on damages in this section shall be increased at the rate of 5 130 percent each year, prorated from July 1, 2014, to the date at 131 which damages subject to such limitations are awarded by final 132 judgment or settlement. 133 Section 2.This act shall take effect July 1, 2025.