06-22-2015 Council Packet - Laserfiche WebLink

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STAFF ORIGINATOR: MEETING DATE: TOPIC: VOTE REQUIRED: INTRODUCTION CITY COUNCIL CONSENT AGENDA ITEM D Paula Schloer, Accountant III June 22, 2015 Consideration of not waiving monetary limits on tort liability per MN Statute 466.04 3/5 As a part of the annual insurance renewal process the City Council is being asked by the League of Minnesota Cities Insurance Trust to update the Liability Coverage Waiver Form. BACKGROUND Each year, the City has the option of waving its monetary limits on tort liability to the extent of the coverage purchased. The decision to waive or not to waive the statutory limits has the following effects: If the city does not waive the statutory tort limits, an individual claimant would be able to recover no more than $500,000 on any claim to which the statutory tort limits apply. The total which all claimants would be able to recover for a single occurrence to which the statutory tort limits apply would be limited to $1,500,000. These statutory tort limits would apply regardless of whether or not the city purchases the optional excess liability coverage If the city does waive the statutory tort limits and does not purchase excess liability coverage, a single claimant could potentially recover up to $2,000,000 on a single occurrence. The total which all claimants would be able to recover for a single occurrence to which the statutory limits apply would also be limited to $2,000,000, regardless of the number of claimants. If the city does waive the statutory tort limits and purchases excess liability coverage, a single claimant could potentially recover an amount up to the limit of the coverage purchased. The total which all claimants would be able to recover for a single occurrence to which the statutory tort limits apply would also be limited to the amount of coverage purchased, regardless of the number of claimants.