2.4. ERMUSR 05-10-2016 - Laserfiche WebLink

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b. Separate coverage Under this option, LMCIT will automatically name the city as a covered party on the entity's policy, and the city's coverage will be endorsed to make the city's coverage apply as excess over the entity's coverage. This effectively makes the entity's coverage primary for both the city and the entity while at the same time making the city's coverage available as excess in case the combined liability exceeds the limits of the entity's coverage. If an HRA, EDA, or port authority decides to purchase coverage from a private insurer, the city and the entity need to review a number of questions to assure adequate coverage. Remember, LMCIT does not automatically provide coverage to the city for claims arising from these entities' activities. Following are some of the key questions to consider. • What type of coverage is being provided to the city and the board? • Is the coverage as broad as provided by LMCIT? • Is public officials' errors and omissions coverage included? • Does it cover employment-related liability? • Does it cover defense costs on litigation related to land use regulation or development which don't involve damage claims? • Is the city named as an additional insured on the entity's board or commission policy? If the city isn't covered under the entity's policy and hasn't added coverage under the city's own LMCIT coverage, there's no coverage anywhere if the city gets sued because of some activities of the HRA, EDA, or port authority. LMCIT can add coverage for this risk. The LMCIT liability coverage is designed to provide as much coverage as possible under one covenant, and to effectively coordinate coverages to eliminate most of the potential gaps in coverage. If the city needs to address a coverage gap that's left by an HRA, EDA, or port authority's private insurance, contact LMCIT. In most cases LMCIT should be able to fill such gaps, though there may be a premium charge to do so. 2. Gas, electrical, or steam utility commission Gas, electrical, or steam utility commissions or agencies are not covered automatically under the city's LMCIT liability coverage. This is true even if the councilmembers also serve as the utilities commission. Unless the city has specifically indicated these entities are to be covered, a claim against one of these entities would not be covered. The city would also not be covered for claims arising from the activities of these entities. In most cases LMCIT can provide the needed coverage for these entities' activities either by adding the board or authority onto the city's policy or by issuing separate coverage to the board or authority itself. 94