HomeMy WebLinkAbout4.F.3. LMCIT Liability Coverage Waiver �,�� Consent Business 4. F. 3.
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TO: Mayor and City Council
Mark McNeill, City Administrator
FROM: Julie Linnihan, Finance Director/City Clerk
DATE: 08/07/2013
SUBJECT: LMCIT Liability Coverage Waiver (F)
Action Sought
Approve not to waive the monetary limits on the tort liability for the upcoming Property and
Liability insurance renewal.
Background
Annually the City of Shakopee renews the property and liability insurance coverage through the
League of Minnesota Cities Insurance Trust (LMCIT). A component of this renewal is the
decision to waive or not waive the statutory tort liability limits, which is brought before City
Council for determination.
City staff is currently preparing the information for the 2013-2014 renewal. The waiver
document will be submitted to the LMCIT far determination of the premium.
If the City does not waive the statutory tort limits, an individual claimant would be able to
recover no more than $500,000 on any claim to which the statutory tort limits apply. The total
which all claimants would be able to recover for a single occurrence would be limited to
$1,500,000.
If the City waives the statutory tort limits and does not purchase excess liabiliry coverage, a single
claimant would potentially recover up to $1,500,000 on a single occurrence.
If the City waives the statutory tort limits and purchases excess liability coverage, a single
claimant could potentially recover an amount up to the limit of the coverage purchased.
Council has historically not waived the monetary limits on tort liability, which allows for a
current liability limit of$500,000 maximum for a single claimant, with a $1,500,000 maximum
for all claimants for a single occurrences.
Recommendation
Approve to not waive the monetary limits on the tort liability for the upcoming Property and
Liability insurance renewal.
Budget Impact
None perceived. Housekeeping item.
Relationship to Vision
Housekeeping item. (F)
Requested Action
If the Council concurs, approval is requested to not waive the monetary limits on the tor liability
for the upcoming Property and Liability insurance renewal.
Attachments: Liability Covera�e Wiaver Form
SBCTION L•LIABILITY COVERAGE WAIVER FORM
Cities obtaining liability coverage fram the League of Minnesota Cities Insurance Trust must decide
whether ar not to waive the statutory tort liability limits to the extent of the coverage purchased. The
decision to waive ar not to waive the statutory limits has the following effects:
If fhe city does nof waive the sfatutory fort limits, an individua!claimant would be able to recover no
more than $500,000. on any claim to which the statu#ory tort limits apply. The total which all claimants
would be able to recover for a single occurrence to which the statutory tort limits apply would be
limited to$1,500,000. These statutory tort limits would appfy regardless of whether or not the city
purchases the optional excess liability coverage.
: !f fhe cify waives fhe statutory tort limits and does nof purchase excess liabilify coverage,a singfe
claimant could potentially recover up to$1,500,000. on a single occurrence. The total which all
claimants wouid be able to recover for a single occurrence to which the statutory tort limits apply would
also be limited to$1,500,000., regardless of the number of claimants.
.: !f the city waives rhe sfafufory fort limits and purchases excess liability coverage, a single claiman#
could potentially recaver an amount up to the{imit of the coverage purchased. The total which all
claimants would be able to recover far a single occurrence to which the statu#ory tort limits apply would
alsa be iimited to the amount of coverage purchased, regardless of the number of claimants.
Claims to which the statutory municipal tort limits do not apply are not affected by this decision.
This decision must be made by the city council. Cities purchasing coverage must complete and
return this form to LMCIT before the effective date of the coverage. For further information, contact
LMC17. You may also wish to discuss these issues with your city attorney.
accepts liability coverage limits of$ from the League of
Minnesota Cities Insurance Trust(LMCIT).
Check one:
❑ The city DOES NOT WA1VE the monetary limits on municipal tort liability established by
Minnesata Statutes 466.04.
❑ The city WAIVES the monetary limits on tort liability established by Minnesota Statutes 466.04,
to the extent of the limits of the liability coverage obtained from LMCIT.
Date of city council meeting
Signature Position
Return this completed form to LMCI7, 145 UniversityAve. W., St. Paul, MN. 55103-2044