2.4. ERMUSR 05-10-2016 - Laserfiche WebLink

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For purposes of when and if the LMCIT coverage applies,the first step is for the city council to determine whether or not an employee's activities in a particular organization are considered to be within the scope of his or her city duties. The council's decision is final for purposes of coverage, and this determination can be made at any time either in advance or after a claim has already occurred. See Section II.D,Coverage When the city council makes this determination, coverage for claims arising limits and Section II.D.3, Purchasing higher liability from that employee's activities in that organization are subject to a$100,000 limits. annual aggregate limit. If the city purchases LMCIT's excess liability coverage, it cannot be applied to these types of claims. When the city decides that participation in a particular organization will be considered to be within the scope of an employee's duties as a city employee, it also has implications for other areas besides liability. Here are a couple considerations to keep in mind: LMC information memos, • If the employee is injured, it would be covered by the LMCIT workers' LMCIT Workers' Compensation Coverage compensation coverage if the city is a member of the LMCIT workers' Guide and Fair Labor compensation program. Standards Act(FLSA): Determining Exempt vs. • For employees who are not exempt from the Fair Labor Standards Act, Non-Exempt Status. time spent on organization activities would likely have to be considered work time for purposes of calculating overtime and other measures. The reason LMCIT leaves it to the city council to determine whether or not an employee's activities in an outside organization are considered to be within the scope of his or her city duties is because LMCIT does not have the opportunity to be aware of the activities of these organizations,to evaluate the risks of those activities, or to provide risk management assistance to control and minimize those risks. Essentially, it can put LMCIT in the position of being the "insurer by default" of risks that it didn't know about or didn't have any opportunity to control. It also eliminates any potential factual disputes about whether or not coverage applies. Again, the city can make the determination whether someone is acting within the scope of his or her city duties in advance or after a claim has already occurred. See Section II.D,Coverage The reason for a$100,000 annual aggregate limit on this coverage is because limits. employees from many different cities might be involved in the same organization, which could lead to a lawsuit in a single incident. That in turn could mean there's a claim under several cities' LMCIT liability coverages. The $100,000 annual aggregate limit greatly reduces the potential for catastrophically large loss costs to LMCIT. At the same time, it provides some safety net protection that should be enough to address many of the surprise situations that might surface. 69