02-09-1994 Council Agenda - Laserfiche WebLink

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Teague of Minnesota Cities 183 University Ave. East St. Paul,1LN 55101.2526 (612) 227 -5600 (FAY: 2.21.0986) U/ ln1W LMJL C/ %J/�vu DATE /f `7' O I PAGES ki FAX M y-yf ;'Y TO ' OEL l- I,ANSD N FROM �E -:4 7-,X)/ r (CONTACT US IF ALL PAGES NOT RECEIVED) • December 1, 1989 To: LMCIT member cities From: Peter Tritz Re: New excess liability coverage options The League of Minnesota Cities Insurance Trust now offers cities two options in purchasing excess liability coverage: - LMCIT now makes it possible for cities to obtain excess coverage without waiving the statutory liability limit of .•$600,000 per occurrence. .Under this option, the higher excess coverage limits would be available only for those claims which are not covered by the statutory limits. • - Alternately, cities may choose to waive the statutory .. liability limits to the extent cf the excess liability coverage purchased. Under this option, the higher coverage limits would be available for all claims, including claims covered by the statutory liability limits. Cost The city's premium for excess coverage will be 15% lower if the city chooses not to waive the statutory monetary liability limits. In addition overall rats levels for excess coverage will be substantially below last year's levels. Background LMCIT's basic liability coverage provides limits of $600,000 per occurrence. LMCIT also offers cities the option of an additional $1 million, $3 million, or $5 million of liability coverage limits. Since the statutes provide that cities and city officials and employees can't be held liable for amounts over $600,000 per occurrence, city officials often ask why it would ever make sense to buy coverage Units higher than $600,000. Thera are four basic kinds of reasons why a city might choose to buy limits of coverage greater than the statutory liability limits. Page 46