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CITY COUNCIL <br />CONSENT AGENDA ITEM 1B <br /> <br /> <br />STAFF ORIGINATOR: Sarah Cotton <br /> <br />MEETING DATE: June 8, 2020 <br /> <br />TOPIC: Consideration of Not Waiving Monetary Limits on Tort Liability <br />per Minnesota Statute 466.04 <br /> <br />VOTE REQUIRED: 3/5 <br /> <br /> <br />INTRODUCTION <br /> <br />As a part of the annual insurance renewal process, the City Council is being asked by the <br />League of Minnesota Cities Insurance Trust to update the Liability Coverage Waiver Form. <br /> <br />BACKGROUND <br /> <br />Each year, the City has the option of waiving its monetary limits on tort liability to the extent of <br />the coverage purchased. The decision to waive or not to waive the statutory limits has the <br />following effects: <br /> <br />If the city does not waive the statutory tort limits, an individual claimant would be able to <br />recover no more than $500,000 on any claim to which the statutory tort limits apply. The total <br />which all claimants would be able to recover for a single occurrence to which the statutory tort <br />limits apply would be limited to $1,500,000. These statutory tort limits would apply regardless <br />of whether or not the city purchases the optional excess liability coverage. <br /> <br />If the city does waive 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 (under this <br />option, the tort cap liability limits are waived to the extent of the city’s liability coverage limits, <br />and the LMCIT per occurrence limit is $2,000,000). The total which all claimants would be <br />able to recover for a single occurrence to which the statutory limits apply would also be limited <br />to $2,000,000, regardless of the number of claimants. <br /> <br />If the city does waive 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. The <br />total which all claimants would be able to recover for a single occurrence to which the statutory <br />tort limits apply would also be limited to the amount of coverage purchased, regardless of the <br />number of claimants. <br /> <br />Claims to which the statutory municipal tort limits do not apply are not affected by this <br />decision. <br /> <br />The city carries $1,000,000 in excess liability coverage ($1,000,000 per occurrence and annual <br />limit). <br />