2.4. ERMUSR 05-10-2016 - Laserfiche WebLink

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See Section III. Se Q,Separate A housing and redevelopment authority(HRA), economic development city boards and commissions. authority(EDA), or port authority is itself a separate political subdivision. If the city EDA, for example, is named as a covered party on the city's coverage and a claim were made that involved both the city and the EDA,theoretically the claimant might be able to recover up to $1.5 million from both the city and the EDA, since there are two political subdivisions involved. Excess coverage See Section II.D.3, is one way to provide enough coverage limits to address this situation. Purchasing higher liability limits. Another solution is for the HRA, EDA, or port authority to carry separate liability coverage in its own name. LMC information memo, The issue of multiple covered parties can also arise is if the city has agreed by Making and Managing City Contracts,Section contract to name another entity as a covered party, or to defend and indemnify IV.B.I.b,Additional another entity. insured provisions. e. Courts may overturn statutory liability limits Cities sometimes carry higher coverage limits because of a concern the courts might overturn the statutory liability limits. However,those limits have now been tested and upheld several times in Minnesota. While it's always possible that a future court might decide to throw out the statutory limits, this is now less of a concern. Ill. Coverage details on specific liability exposures The LMCIT liability coverage is broad,but there are a number of situations where the city needs to take additional action or be aware of special coverage terms and limits. A. Airports LMCIT offers optional airport liability coverage to members of the property/casualty program. Coverage is available for airports that are operated by a city,by a joint powers entity that includes at least one city, or by a special purpose district. Coverage is available for most municipal airports; however, larger airports that have scheduled service are not eligible. 1. Coverage limits The airport liability coverage is very broad and carries a per occurrence limit of$2 million and an annual aggregate limit of$3 million. It is subject to the same deductibles that apply to the city's municipal liability coverage. Higher See Section ILD.3, Purchasing higher liability limits can be provided through LMCIT's optional excess liability coverage, limits. although it is not available as an option for airport risks only. 63