Puerto Rico Supreme Court Opens Door to Direct Tort Claims Against Municipal Insurers
On August 4, 2026, the Puerto Rico Supreme Court issued its opinion in Rodríguez Negrón v. Estado Libre Asociado de Puerto Rico, et al., 2026 T.S.P.R. 84, holding that insurers providing civil liability coverage to municipalities may be subject to tort liability through a direct action when their policies cover damages arising from accidents on state roads and sidewalks located within the municipalities’ territorial limits, even if the municipalities themselves are immune from such claims. This case follows the Supreme Court’s decision in González Meléndez v. Mun. San Juan et al., 212 D.P.R. 604 (2023), which held that, after the enactment of Puerto Rico Law No. 143-2019, municipalities are immune from tort liability for claims arising from accidents on state roads and sidewalks located within their territorial limits.
Nonetheless, the question before the Supreme Court was whether a municipality’s acquisition of civil liability insurance constitutes a waiver of governmental immunity in the context of a direct action under Puerto Rico’s Insurance Code. After considering the scope of Chapter 20 of the Insurance Code, the Supreme Court held that it does. Accordingly, when an insurer provides a municipality with civil liability coverage for an accident claim as to which the municipality is immune, the insurer may nevertheless be subject to a direct action under the Insurance Code.
Insurers should view the ruling in Rodríguez Negrón v. Estado Libre Asociado de Puerto Rico, et al., supra, as an opportunity to review their policies and consider whether a revision of their civil liability insurance provisions should be considered on account of this potential avenue of liability.
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