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<br /> <br />L-gu. 0/ Mi,....... Citiu <br />Citiu ,_Un9 r=:o&m"" <br /> <br />League of Minnesota Cities <br />Insurance Trust <br />145 University Avenue West, St Paul, MN 55103.2044 <br />(651) 281.1200 . (800) 925.1122 <br />Fax: (651) 281-1298 . TOD: (651) 281.1290 <br />www.lmnc.org <br /> <br />RISK MANAGEMENT INFORMATION <br />LMCIT LIABILITY COVERAGE OPTIONS <br />Liability Limits, Coverage Limits, and Waivers <br /> <br />LMcrr gives cities several options for structuring their liability coverage. The city can choose <br />either to waive or not to waive the monetary limits that the statutes provide: and the city can <br />select from among several liability coverage limits. This memo discusses these options and <br />identifies some issues to consider in deciding which of the options best meets the city's needs. <br /> <br />What are the statutory limits on municipal tort Ii:lbility? <br /> <br />The statutes limit a city's tort liability to a maximum of $300.000 per claimant and $1,000,000 <br />per occurrence. These limits apply whether the claim is against the city. against the individual <br />onicef or employee, or against both. <br /> <br />What :lre the coverage limits for L'ICIT's basic primary liability coverage? <br /> <br />LMCIT" s liability coverage provides a limit of $1,000.000 per occurrence. matching the per- <br />occurrence part of the statutory municipal tort liability limit. Under the basic coverage foml the <br />$300,000 per claimant part of the statutory liability limit is not waived, so if the statutory limit <br />applies to the particular claim, LMCIT and the city would be able to use that limit as a defense. <br /> <br />Beside the overall coverage limit of $1,000,000 per occurrence. there are also annual aggregate <br />limits (that is. limits on the total amount of coverage for the year regardless of the number of <br />claims), for certain specific risks. Aggregate limits apply to the following: <br /> <br />! Products I com leted 0 )erations <br />I Failure to supply utilities <br />EMF <br />I Limited )ollution* <br />I Lead and asbestos* <br />Mold <br />Land use litigation** <br />Em lovers liabilit .. (work com)) <br /> <br /> <br />S 1.000.000 annuallv <br />S I ,000,000 annuall <br />S 1.500.000 annuall ' <br />$1.000,000 annually <br />$200.000 annuall <br />S I ,500,000 annuallv <br />$1.000.000 annually <br />$1,000,000 annuall' <br /> <br /> <br />* The limit applies to both damages and defense costs. <br />** Coverage is on a sliding scale percentage basis. and applies 10 both damages and litigation <br />costs. <br />