2.4. ERMUSR 05-10-2016 - Laserfiche WebLink

Home Browse Search

LMC information memo, Cities need to be concerned about a contractor's liability coverage. LMCIT Making and Managing City Contracts,Section Iv.B.1, strongly encourages cities to make sure that every contractor has liability Commercial general insurance,which is typically in the form of a commercial general liability liability insurance. (CGL)policy. LMCIT recommends the city attempt to get the city named as an additional insured on the contractor's policy. LMCIT Liability Rating If certain types of law enforcement contracts and some other types of non- System. professional service contracts are arranged in a manner that adequately reduces the city's liability exposure, cities can potentially reduce their LMCIT municipal liability coverage premium. Because of this, cities should carefully review all contracts and requests for additional insureds with the city's legal counsel and through LMCIT's Contract Review Service. LMCIT Contract Review LMCIT's Contract Review Service is a free program that helps guard member Service. cities against common contract liability exposures by identifying defense and Chris Smith,LMCIT Risk indemnification language that may be problematic. Advice and Management Attorney 651.281.1269 recommendations are provided to help ensure contracted activities fall within 800.925.1122 the scope of LMCIT coverages. This service does not replace the services of csmith@lmc.org city attorneys. Review can be as broad or as narrow as needed to respond to the city's concerns and protect the city's interests. I. Joint powers entities See Section II.C.2,Risks A joint powers entity is not a covered party in the city's LMCIT liability that must be specifically underwritten. coverage unless special arrangements have been made. Cities must be careful to make sure that any joint powers entity in which they participate does in fact have liability coverage. If not,the city can be left with a coverage gap if it is sued because of something the joint powers board did or if a personal injury or property damage arises from the activities of the joint powers entity. LMCIT makes available two ways in which coverage can be provided for a joint powers entity and its members. LMCIT requires that cities take special steps to put coverage into place because it helps in avoiding some of the problems that can be created if several different parties' individual coverage became involved in defending suits that arise out of a single incident. If an incident were to occur, the chances are that the plaintiff would sue everyone in sight: the joint entity, all of the individuals involved, all of the constituent cities, and so on. Under LMCIT's approach, the joint entity's coverage document would respond to all of those suits and would defend all of the parties being sued. A single defense attorney would be named to defend all of the parties, and LMCIT would be responsible for any covered damages that were awarded, regardless of which defendants were actually found liable. 74