Laserfiche WebLink
RELEVANT LINKS: <br />League of Minnesota Cities Information Memo: 8/6/2018 <br />LMCIT Liability Coverage Guide Page 9 <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />If the city EDA, for example, is named as a covered party on the city’s <br />coverage and a claim were made that involved both the city and the EDA, <br />theoretically the claimant might be able to recover up to $1.5 million from <br />both the city and the EDA since there are two political subdivisions involved. <br />Excess coverage is one way to provide enough coverage limits to address this <br />situation. Another solution is for the HRA, EDA, or port authority to carry <br />separate liability coverage in its own name. <br />LMC information memo, <br />Making and Managing City <br />Contracts, Section <br />IV.B.1.b, Additional <br />insured provisions. <br />The issue of multiple covered parties can also arise is if the city has agreed by <br />contract to name another entity as a covered party, or to defend and indemnify <br />another entity. <br /> e. Courts may overturn statutory liability limits <br /> Cities sometimes carry higher coverage limits because of a concern the courts <br />might overturn the statutory liability limits. However, those limits have been <br />tested and upheld several times in Minnesota. While it’s always possible a <br />future court might decide to throw out the statutory limits, this is less of a <br />concern. <br /> III. Coverage details on specific liability <br />exposures <br /> The LMCIT liability coverage is broad, but there are some situations where <br />the city needs to take additional action or be aware of special coverage terms <br />and limits. <br /> A. Airports <br /> LMCIT offers optional airport liability coverage to members of the <br />property/casualty program. Coverage is available for airports that are operated <br />by a city, by a joint powers entity that includes at least one city, or by a <br />special purpose district. Coverage is available for most municipal airports; <br />however, larger airports that have scheduled service are not eligible. <br /> 1. Coverage limits <br /> <br /> <br /> <br /> <br />See Section II.D.3, <br />Purchasing higher liability <br />limits. <br /> <br />The airport liability coverage is very broad and carries a per occurrence limit <br />of $2 million and an annual aggregate limit of $3 million. It is subject to the <br />same deductibles that apply to the city’s municipal liability coverage. Higher <br />limits can be provided through LMCIT’s optional excess liability coverage, <br />although it is not available as an option for airport risks only.