Laserfiche WebLink
<br /> <br /> <br />Request for Action <br /> <br /> <br /> <br />To Item Number <br />Mayor and City Council 4.9 <br />Agenda Section Meeting Date Prepared by <br />Consent April 6, 2020 Lori Ziemer, Finance Director <br />Item Description Reviewed by <br />Annual Approval Electing Not to Waive the Cal Portner, City Administrator <br />Statutory Tort Limits for Liability Insurance <br />Reviewed by <br /> <br /> <br />Action Requested <br />Elect, by motion, not to waive the statutory tort limits for liability insurance. <br /> <br />Background/Discussion <br />The City of Elk River secures its liability, property, casualty, automobile, and workers compensation <br />insurance coverage through the League of Minnesota Cities Insurance Trust (LMCIT). As a condition of <br />renewal, the city must annually execute a “LMCIT Liability Coverage Waiver Form” and: <br />1. Determine whether to waive the statutory liability limits; and <br />2. Determine whether to acquire excess liability insurance coverage. <br /> <br />As established by Minnesota Statute 466.04, the statutory liability limits for claims that occur after July 1, <br />2009, are $500,000 per claimant and $1,500,000 per occurrence. <br /> <br />Annually, the City Council must review and make an election of one of the following three options (claims <br />to which the statutory municipal tort limits do not apply are not affected by this decision): <br />1. Not to waive the statutory tort limits – staff recommendation <br /> If the city does not waive the statutory tort limits, and individual claimant would be able to <br />recover no more the $500,000 on any claims and the total for a single occurrence would be <br />limited to $1,500,000 to which the statutory tort limits apply. <br />2. Waive the limits and not purchase excess liability coverage <br /> If the city waives the statutory tort limits and does not purchase excess liability coverage, a <br />single claimant could potentially recover up to $2,000,000 on a single occurrence. <br />3. Waive the limits and purchase excess liability coverage <br /> If the city waives the statutory tort limits and purchases excess liability coverage, a single <br />claimant could potentially recover an amount up to the limit of the coverage purchased. <br /> <br />On June 3, 2013, the Council approved Resolution 13-34 electing not to waive the statutory tort limits for <br />liability insurance. This resolution allows the statutory tort limits to remain in place until the Council changes <br />this election. <br /> <br /> <br />The Elk River Vision <br />A welcoming community with revolutionary and spirited resourcefulness, exceptional <br />service, and community engagement that encourages and inspires prosperity <br /> <br />