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0 <br /> LEAGUE of CONNECTING & INNOVATING <br /> MINNESOTA SINCE 1913 <br /> CITIES <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 $3,000,000 annually <br /> Failure to supply utilities $3,000,000 annually <br /> Data security breaches $3,000,000 annually <br /> EMF $3,000,000 annually <br /> Limited pollution* $3,000,000 annually <br /> Mold $3,000,000 annually <br /> Employers liability(work comp) $1,500,000 annually <br /> Land use/special risk litigation** $1,000,000 annually <br /> Activities in outside organizations $100,000 annually <br /> *Includes sudden and accidental releases of pollutants; h erbicide 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 /> 47 <br />