2.4. ERMUSR 05-10-2016 - Laserfiche WebLink

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• Gas, electrical, or steam utilities commission. • Port authority, HRA, EDA, municipal redevelopment authority, or similar agency. • Municipal power or gas agency. • Airport board or commission. • Hospital, nursing home, or medical clinic board or commission. Different types of boards and commissions pose different kinds of coverage issues and problems. Here are some of the issues, questions, and problems that arise with some of the more common types of independent city boards and commissions. 1. Port authority, HRA, or EDA An HRA, EDA, and port authority are legally separate political subdivisions. These are not covered automatically under the city's LMCIT liability coverage. This is true even if the councilmembers themselves also make up the board of the political subdivision. Unless the city has specifically indicated these entities are to be covered, a claim against one of these political subdivisions would not be covered. The city would also not be covered for claims against the city which arise from the activities of these entities. LMCIT offers two ways to provide coverage for the activities of an HRA, EDA, or port authority. One is having the EDA, HRA, or port authority named as an additional covered party on the city's coverage. The other is to have separate coverage issued to the EDA, HRA, or port authority in its own name. a. Additional covered party on city's coverage Cities choosing this approach should keep in mind that since these entities are separate political subdivisions,theoretically a claimant could collect up to the Minn.Stat.§466.04. $1.5 million statutory liability limit from both the city and the EDA, HRA, or port authority if both were involved in a single claim. Since the LMCIT See Section II.D.1,LMCIT liability coverage limits are $2 million per occurrence regardless of the primary liability limits. number of defendants, there is some additional protection but there is a possibility that the combined liability of the city and the entity could exceed See Section II.D.3, the limit. One way to address this risk is to obtain the LMCIT excess liability Purchasing higher liability limits. coverage. 93