2.4. ERMUSR 05-10-2016 - Laserfiche WebLink

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D. Employees' activities in outside organizations It's important for cities to be aware of what organizations city employees are participating in, and to decide whether or not the city considers participating in those organizations to be part of the employee's duties as a city employee. It's in both the city's and the employee's interest to address that question up front.Not doing so could leave a gap in liability coverage not only for the city,but for the individual employee as well. The goal of the LMCIT liability coverage is to protect LMCIT members' funds by controlling the risk of very large loss costs that could result from these types of claims and provide some certainty as to when these types of claims are covered and when they are not. 1. Coverage limits and terms City officers and employees often participate in outside organizations that are related in some way to their city duties. Examples include: • Associations of wastewater operators. • Fire instructors. • Finance officers. These organizations may engage in a wide variety of types of activities such as holding conventions, fundraising activities, and training. If the employee's activities in those organizations lead to a liability claim against the individual, the organization may or may not have insurance or assets to defend and indemnify the employee for the liability claim. If the organization is unable or unwilling to defend the individual, she or he will very likely look to the city for protection. The LMCIT liability coverage includes provisions addressing when and how the coverage will respond to claims against city officers or employees arising from their activities as officers or members of outside organizations. Following is the definition of the"outside organizations"that are affected: • A formally organized membership organization. • A professional organization. • Any for profit or nonprofit corporation. See Section III.Q,Separate The coverage provisions only affect organizations where the individual is the city boards and commissions. member. It does not affect organizations where the city is a member. This includes things like a joint powers entity; other governmental entities such as an HRA,utility commission, or port authority; city relief associations(these are already automatically covered under the city's LMCIT liability coverage); and any entity that's named as a covered part on the city's coverage. 68