2.4. ERMUSR 05-10-2016 - Laserfiche WebLink

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1. Coverage limits and deductibles A mandatory deductible of$2,500 per occurrence applies to all liability Sanitary Sewer Incentive claims for sanitary sewer backups unless the city participates in LMCIT's Program. sanitary sewer incentive program. Cities already using a higher deductible on their liability coverage are not affected by this. Those cities using an aggregate deductible approach for coverage are impacted in the event the aggregate limit is reached and the maintenance deductible is less than$2,500. See Section III.R.2,No- Members that purchase the LMCIT no-fault sewer backup coverage are fault sewer backup coverage. automatically considered to meet the criteria to avoid the mandatory minimum deductible. Download the sanitary To qualify for the incentive, cities must complete a sanitary sewer system sewer system questionnaire, located on the last page of questionnaire and return it to LMCIT. If the information provided confirms LMC information memo, that a city meets the criteria, it will not be subject to the higher mandatory Sanitary Sewer Incentive Program:Qualifications deductible. A city may certify they meet the criteria either at the time of and Maintaining Immunity. renewal or midterm. If qualification occurs midterm, LMCIT will issue an endorsement removing the minimum deductible. Cheryl Brennan,Loss For assistance in determining compliance or developing the required sewer Control Field Services Manager inspection and maintenance programs, contact the city's loss control field cbrennan@lmc.org consultant or the loss control field services manager and use LMCIT's 651-215-4079 sanitary sewer toolkit containing model forms and suggested policies to meet LMC information memo, the criteria. Sanitary Sewer Toolkit:A Guide for Maintenance Policies and Procedures. 2. No-fault sewer backup coverage As an option, no-fault sewer backup coverage is available for members that meet certain underwriting criteria. The optional coverage comes with an additional charge and will reimburse a property owner for cleanup costs and damages resulting from a city sewer backup or from a city water main break, irrespective of whether the backup was caused by city negligence. The no-fault sewer backup coverage option is intended to: • Reduce health hazards by encouraging property owners to cleanup backups as quickly as possible. • Reduce the frequency and severity of sewer backup lawsuits (i.e.,property owners may be less inclined to sue if they receive conciliatory treatment at the time of the backup). • Give cities a way to address the sticky political problems that can arise when a property owner learns the city and LMCIT won't reimburse for sewer backup damages because the city wasn't negligent and therefore not legally liable. 98