02-27-2023 Council Packet - Laserfiche WebLink

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RELEVANT LINKS: League of Minnesota Cities Information Memo: 6/23/2022 LMCIT Liability Coverage Guide Page 34 The city’s liability coverage does, however, cover other types of liability claims that might arise from city hospital, nursing home, or clinic operations, including employment-related liability claims. Coverage applies even if the hospital, nursing home, or clinic is managed by a separate board or directly by the council. If there is a separate managing board, the members of that city board are automatically covered parties under the city’s liability coverage. These boards do not need to be specifically named as covered parties. 5. Municipal power or gas agency Minn. Stat. § 453.52. The statutes provide that a municipal power agency or municipal gas agency is legally a separate political subdivision and municipal corporation created by agreement between or among two or more cities. Thus, these organizations have some characteristics both of political subdivisions and of joint powers entities. Any city that participates in a municipal power or gas agency should make sure the agency has appropriate liability coverage. The city’s Trust liability coverage does not cover claims arising from the activities of a municipal power or gas agency. As a special purpose political subdivision, a municipal power or gas agency is eligible to become a member of LMCIT and obtain coverage. R. Sewer backups See Section II.R.2, No-fault sewer backup coverage. Liability coverage for sewer backups is a standard feature of LMCIT’s liability coverage. There are no specific exclusions for claims arising out of sewer backups for which the city is negligent in causing. LMCIT offers no- fault sewer backup coverage as an extra cost option to those cities who want to provide coverage to property owners irrespective of whether the backup was caused by city negligence. 1. Coverage limits and deductibles Sanitary Sewer Incentive Program. A mandatory deductible of $2,500 per occurrence applies to all liability claims for sanitary sewer backups caused by city negligence, unless the city participates in LMCIT’s sanitary sewer incentive program. Cities using a higher deductible on their liability coverage are not affected by this; cities using an aggregate limit are only impacted if the aggregate limit is reached and the maintenance deductible is less than $2,500; and cities using LMCIT’s no-fault sewer backup coverage automatically meet the criteria to avoid the mandatory minimum deductible.