12-07-2020 Council Packet - Laserfiche WebLink

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RELEVANT LINKS: League of Minnesota Cities Information Memo: 8/6/2018 LMCIT Liability Coverage Guide Page 5 See Section II.D.3, Purchasing higher liability limits. Second, it’s increasingly more common to see contracts require more than the statutory limit of $1.5 million; a more common figure is $2 million. LMCIT’s higher limit meets this requirement, but if even higher limits are required, there is the option to carry LMCIT’s excess liability coverage to meet the additional requirements. LMCIT can in some cases also issue an endorsement to increase the city’s coverage limit only for claims relating to a particular contract. In addition to the LMCIT coverage limit of $2 million per occurrence, there are annual aggregate limits (that is, limits on the total amount of coverage for the year regardless of the number of claims), for certain specific risks. Aggregate limits apply to claims arising out of the following: See Section III.B, Data security breach and computer-related risks. . See Section III.J, Land use and special risk litigation and Land Use Incentive Program. See Section III.D, Employees’ activities in outside organizations. • Products $3 million annually • Failure to supply utilities $3 million annually Coverage applies for the failure to supply water, electricity, gas, or steam service. It also applies to damages arising out of the failure to supply phone and internet or other electronic data transmission services. • Data security breaches $3 million annually A $250,000 annual aggregate/sublimit (part of and not in addition to the $3 million aggregate) applies for Payment Card Industry (PCI) fines and penalties and data security breach regulatory fines and penalties resulting from a data security breach claim. • Electromagnetic fields $3 million annually • Limited contamination $3 million annually Includes the sudden and accidental release of pollutants; herbicide and pesticide applications; sewer ruptures, overflows, and backups; lead and asbestos claims; mold claims; organic pathogen claims; hostile fire claims; and excavation and dredging claims. Excavation and dredging claims are subject to an annual $250,000 sublimit. These limits apply to both damages and defense costs. • Land use/special risk litigation $1 million annually Land use litigation coverage is provided on a sliding scale percentage basis, which is based on participation in LMCIT’s land use incentive. Coverage applies to both damages and litigation costs. • Activities in outside organizations $100,000 annually 2. Statutory liability limits Minn. Stat. § 466.04. The statutory municipal tort cap is limited to a maximum of $500,000 per claimant and $1.5 million per occurrence. These limits apply whether the claim is against the city, against the individual officer or employee, or against both. The LMCIT liability coverage provides a standard limit of $2 million per occurrence.