HomeMy WebLinkAbout6.h. Accept Tort Liability Insurance Limits � ROSE� v1CJ�l\� EXECUTIVE SUMMARY
CITY CQUNCI �
City Council Meeting Date: November 18, 2014
AGENDA ITEM: Accept Tort Liability Insurance Limits AGENDA SECTION:
Consent
PREPARED BY: Jeff May, Finance Director AGENDA NO. /
`j0 . .
ATTACHMENTS: Recommendation Letter from Dan
Peterson, Risk Management Consultant; APPROVED BY:
LMCIT Liabilit Covera e —Waiver Form
RECOMMENDED ACTION: Motion to waive 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.
ISSUE
Approve the annual selecrion of tort liability insurance limits.
BACKGROUND
Cities obtaining liability coverage from the League of Minnesota Ciries Insurance Trust (LMCI'I� must
decide whether or not to waive the statutory tort liability limits. In the past, the City has waived the
$500,000 / $1,500,000 tort cap limit and has elected the $1,500,000 / $1,500,000 limit. Last year the
premium for the addirional coverage was $1988. By waiving the statutory tort limit cap and getting the
"better coverage", the City is better protecting itself in the event of a serious accident or unusual claim. In
switching, the feeling is that the additional premium is money well spent by the City to protect itself and
ultimately,its cirizens.
The City Council has to annually take the action to waive the statutory tort liability limits and to accept the
LMCIT's higher coverage. Attached is a form that the Mayor will then have to sign and we will return to
LMCIT for the insriturion of this coverage. Also attached is a letter from Dan Peterson, our risk
management consultant, recommending that we increase the coverage to $1,500,000 / $1,500,000 for the
plan year 12/1/14 through 11/30/15.
SUMMARY
Recommend the above motion.
LEAGUE OF MINNESOTA CITIES INSURANCE TRUST
SECTION I: LIABILITY COVERAGE WAIVER FORM
Cities obtaining liability coverage from the League of Minnesota Cities Insurance Trust must decide
whether or not to waive the statutory tort liability limits to the extent of the coverage purchased. The
decision to waive or not to waive the statutory limits has the following effects:
, 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 to which the statutory tort limits apply would be
limited to $1,500,000. These statutory tort limits would apply regardless of whether or not the city
purchases the optional excess liability coverage.
�� If the city waives the statutory tort limits and does not purchase excess liability coverage, a single
claimant could potentially recover up to $1,500,000. on a single occurrence. The total which all
claimants would 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.
�� If the city waives the sfatutory tort limits and purchases excess liability coverage, a single claimant
could potentially recover an amount up to the limit of the coverage purchased. The total which all
claimants would be able to recover for a single occurrence to which the statutory tort limits apply would
also be limited 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
LMCIT. You may also wish to discuss these issues with your city attorney.
The City of Rosemount accepts liability coverage limits of$1,500,000/$1,500,000 from the League of
Minnesota Cities Insurance Trust(LMCIT).
Check one:
❑ The city DOES NOT WAIVE the monetary limits on municipal tort liability established by
Minnesota 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 November 18, 2014
Signature Position Mayor
Date
Return this completed form to LMCIT, 145 University A ve. W., St. Paul, MN. 55103-2044
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