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r n <br />LE EAGUE of <br />MINNESOTA <br />CITIES <br />CONNECTING & INNOVATING <br />SINCE 19t3 <br />RISK MANAGEMENT INFORMATION <br />LMCIT LIABILITY COVERAGE OPTIONS <br />Liability Limits, Coverage Limits, and Waivers <br />LMCIT gives cities several options for structuring their liability coverage. The city can choose <br />either to waive or not to waive the monetary limits the statutes provide; and the city can <br />select from among several liability coverage limits. This memo discusses these options and <br />identifies some issues to consider in deciding which of the options best meets the city's <br />needs. <br />What are the statutory limits on municipal tort liability? <br />The statutes limit a city's tort liability to a maximum of $500,000 per claimant and $1,500,000 <br />per occurrence. These limits apply whether the claim is against the city, against the individual <br />officer or employee, or against both. <br />What are the coverage limits for LMCIT's basic primary liability coverage? <br />For coverage written or renewed on or after November 15, 2014, LMCIT's liability coverage will <br />provide a limit of $2,000,000 per occurrence. Besides the overall coverage limit of $2,000,000 <br />per occurrence, there are also annual aggregate limits (that is, limits on the total amount of <br />coverage for the year regardless of the number of claims), for certain specific risks. Aggregate <br />limits apply to the following: <br />Products <br />$3,000,000 annually <br />Failure to supply utilities <br />$3,000,000 annually <br />Data security breaches <br />$3,000,000 annually <br />EMF <br />$3,000,000 annually <br />Limitedpollution* <br />$3,000,000 annually <br />Mold <br />$3,000,000 annually <br />Employers liability (work comp) <br />$1,500,000 annually <br />Land use/special risk litigation** <br />$1,000,000 annually <br />Activities in outside organizations <br />$100,000 annually <br />* Includes sudden and accidental releases of pollutants; herbicide and pesticide application; sewer <br />ruptures, overflows and backups; and lead and asbestos claims. Dredging or excavation claims are <br />subject to a $250,000 sublimit. These limits apply to both damages and defense costs. <br />** Coverage is provided on a sliding scale percentage basis, which is based on participation in <br />LMCIT's online land use training. Coverage applies to both damages and litigation costs. <br />LEAGUE OF MINNESOTA CITIES 145 UN IVY RST AVL IVY ST mow: (651) 281.1200 rAx:(651)281 1298 <br />INSURANCETRUST 5T. PAUL. AIN 55103-1044 TOL1raLL:(800))25-1122 %VMWWWAMcokc <br />