01-25-1993 Council Packet - Laserfiche WebLink

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I TO;Mayor and City Council FROM:Ron Moorse, City Administrator DATE:January 21, 1993 /7 SUBJECT: Excess Liability Coverage At the December 14 Council meeting staff made a recommendation to the Council regarding excess liability coverage and the waiver of the City's statutory liability limits based on information provided by the City's insurance agent. At that time the Council requested staff to clarify the issue of the waiver of the liability limits. After reviewing the issue with the League of Minnesota Cities Insurance Trust and the City's insurance agent, the insurance agent indicated the information he provided to us was not correct. The excess liability insurance and liability limit waiver issues are two separate and independent issues. Excess Liflilitv Insurange _ The City nnually purchases a liability insurance policy in the Ci'-y also annually purchases excess liability insurance in the amount of $2,000,000. This is to cover the City in the case of a liability claim that falls outside of the statutory limits, such as a federal civil rignts action. It is recommended that the City continue to purchase the excess liability coverage. Waiver ff Liability Limits attached i- no from the LMCIT uses the example of an accident which injures numerous people. If the $600,000 amount is divided among a.U those, pec ole, the amount of compensation paid to any individual is fao lv smill. The waiver of the liability limits along with the excess li.bUity coverage would enable the city to provide additional compensation to those people The waiver of the liability limits and the associated excess liability coverage doe not provide additional benefits to the city, it provides additional ability to compensate injured parties. VS. $22,587) At this time the Council may choose to confirm its action of S^cember 14 which waived the city's liability limits or to reconsider and keep the liability limits in effect. i 1 \ 1