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> the offending employee likely can't pay the judgment in full

My doctor is required to carry malpractice insurance. Those who commit repeated egregious mistakes become uninsurable.

Make cops do the same.

Many (most? idk) governments that employ the cops (city, county, whatever) do have insurance for this, and grant police qualified immunity. There are some attempts to hold cops liable as well - https://leg.colorado.gov/bills/sb20-217. The City Council in my town immediately restored qualified immunity for their police. Don't underestimate the level of absolute blind support for cops that exists among the US population.

They did not say governments should have legal insurance. They said cops should have malpractice insurance. Insurers calculate individual rates and want profit.

Your town's council overrode a state law?

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