11-26-2018 Council Packet - Laserfiche WebLink

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RELEVANT LINKS: League of Minnesota Cities Information Memo: 2/13/2017 LMCIT Liability Coverage Guide Page 3 The LMCIT municipal liability coverage is claims-made. In other words, in order to be covered the claim must be reported either within the coverage period or within an applicable extended reporting period if the city has left LMCIT (there are a few types of claims to which the extended reporting period does not apply). For certain types of claims, the coverage document further specifies when the claim is deemed to be made. Coverage only applies if the occurrence giving rise to the claim occurred after the applicable retroactive date, which is specified in the declarations. It is generally the date when the city first joined LMCIT or added the specific coverage in question. The coverage document further spells out how the occurrence date is determined for specific types of claims. Most cities have been LMCIT members long enough that the retroactive date is rarely an issue. C. Liability exclusions Since the LMCIT liability coverage is broad in scope, sometimes it’s easier to first look at what’s not covered by LMCIT rather than what is covered. Following are some of the standard exclusions to be aware of. Members should contact their agent or underwriter if coverage is needed in any of these areas. It’s possible LMCIT may be able to find a way to provide coverage, or at least help find coverage elsewhere. 1. Liability not covered See Section III.M, Open meeting law and bankruptcy lawsuits. • Damages arising out of a city’s bankruptcy, except some defense cost reimbursement coverage is available for city officials under the LMCIT defense cost reimbursement coverage. • Criminal proceedings. • Most non-sudden pollution. • Nuclear hazards. • War. • Amounts owed under contract. • Condemnation, except some regulatory takings. • Damage the city does to its own property. • Fixing the city’s own work. • Not paying employees for the work they did. • Recalling defective products. 2. Risks that must be specifically underwritten See Section III.A, Airports; Section III.C, Dams and downstream liability; Section III.G, Fireworks; Section III.I, Joint powers entities; and Section III.Q, Separate city boards and commissions. • Airports. • Dikes or Class I or Class II dams. • Fireworks the city sponsors. • Joint powers entities. • Separate boards, commissions, and agencies.