Unfortunately it doesn’t work that way.
The city or police dept insurance company will pay up. While this does translate to higher premiums in some cases, that cost is paid by tax money - in other words it isn’t “the police” who will pay up, it is the taxpayers. If the insurance company refuses payment, then settlements typically come out of the municipal general fund - again, tax funded.
Nor does a citizen have a realistic chance of ever winning a personal judgement against a police officer, regardless of how egregious the officers behavior is. The laws that exist to shield officers from lawsuits are damn near impenetrable.
Any way you slice it, neither an officer nor their department is going to face out-of-pocket costs due to malfeasance.
At some point there has to be civilian oversight, with the authority to discipline, demote, or terminate officers - and that system is extremely rare. Even where civilian oversight does exist it is typically “advisory” only.
