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SEP-25-2003 16 27 RCORDIR 9528307355 P.03 LMCIT !~ Risk Managemen# Information ~, ~~ ~~~ 1~ U'niversitvA~+eaue West, St Paul. I+~f,Y ~~103-204 Pone: (651) 281.1200 • (80f}} 925-1122 Fa:: (6~1) 281-1248 • TDD (65i} 2$I-3.290 W,..o.I~t..l~~.al~ LIVICIT LIABILITY COVERAGE OPTIONS LIABILITY LIMITS, COVERAGE LIMITS, A.NI3 WA-IVER,S LMCIT fives cities several options for structuring their liability coverage. The city can choose either to waive or not to waive the monetary limits that the statutes provide, and the city can select from among several liability coverage limits. This memo discusses these options and identifies some issues to consider in deciding which of the options best meets the city's needs. What are the statutory limits on municipal tv~rt liability? The statutes lmnit a aty's tort liability to a maximum of 5300,000 per claimant and SI,000,400 per occurrence; These limits apply whethtt the claim is against the city, against the individual officer or employee, or against both. What are the coverage limits for LMC1T's basic primary liability coverage? LMCIT's liability coverage provides a limit of S 1,000,040 per occurrence, nnatciung the per- occuurence part of the statutory municipal tort liability limit. Under the basic coverage form the $300,000 per claimant part of the statutory liability Limit is not waived, so if the statutory limit applies to the particular claim, LMC1T and the city would be able to use that limit as a defense. Beside the overall coverage limit of SI,000,000 per ocetu:euce, there are a}so annual ag~~e~2ate limits. {that is, limits on the total amount of coverage for the year regardless of the number of claims}, for certain speci5c risks. Aggregate limits apply to the following: Products / com lewd rations S 1,000,000 annuall Failerre to s 1 utilities j S l 000.000 aanuslI EMF I $1,500 000 aaauall Limited llution* S i 000 000 annuall Lead and asbestos' 5200 000 annusll Land use Iiti anon** S 1 000 000 annuall Y2k - basic* 525,000 anauall Y2k - anded* 5750,008 aanuall Em Io liabili work com) 5I 000,000 aanualt * The limit applies w both damages and defense cosu. '"' Coverage is on a sliding scale percentage basis.