HomeMy WebLinkAbout15.F.4. Automobile Insurance
CITY OF SHAKO PEE is. F. 1#
Memorandum
TO: Mayor and Council
Mark McNeill, City Administrator
FROM: Gregg Voxland, Finance Director
SUBJ: Automobile Insurance
DATE: March 1, 2004
Introduction
Council is requested to consider expanding the City'S automobile
insurance coverage to privately owned vehicles.
Background
When an employee uses a city owned vehicle for business purposes, the
city's insurance provides both liability and property damage coverage.
However, when a city employee uses their own vehicle for city business,
the city's insurance provides no property coverage and liability
coverage only after the driver's insurance coverage.
The argument can be made that the mileage reimbursement includes an
insurance component for the property damage that may be involved in a
crash. The liability issue is a much bigger issue. For $10 per
covered employee per year, Council can have the city's insurance
provide coverage first (before the drivers insurance). The city'S
coverage limit is $1,000,000.
Suggested employees to be covered would be supervisor level and up,
firefighters and Council. These are the employees who more regularly
use their private vehicle for city business. Fire fighters are deemed
to be on city business when they stop doing whatever they were doing
and start to respond to a fire call until they return to their private
activity (i.e. return home) . They are covered by workers compensation
during that time.
It appears that about 30% of other cities have this coverage.
Cost would be about $700 with the city share being about $640.
Action
Move to extend the city's automobile liability coverage as primary for
privately owned vehicles when used for city business.
6r~g~i!:d
Finance Director