HomeMy WebLinkAbout[04d] Tort Liability Waiver t:rra OF sT;,cSKrFC Council Agenda Item
4(d)
MEETING DATE: December 15, 2012
AGENDA ITEM: Liability Insurance — Requested Action: Authorize the
Administrator to execute the LMCIT Liability Coverage Waiver Form, verifying that the City does not
waive the monetary limits on tort liability.
SUBMITTED BY: Administration
BOARD /COMMISSION /COMMITTEE RECOMMENDATION:
PREVIOUS COUNCIL ACTION: Annually the Council must determine if the City waives the tort limits for
liability insurance. Each year the City has reviewed the provision and opted to not waive the monetary
limits.
BACKGROUND INFORMATION: The tort limits establish the maximum amount that an individual can
try and recover through a liability claim. If the City does not waive the right, the maximum an individual
can recover from a single incident is $ 300,000 or $ 1,000,000 for all claimants of the same incident. If
the City waives the monetary limits on tort liability, the maximum recovery an individual can claim is $
1,000,000 per single occurrence. Simply put, this provision limits the exposure of the City for liability
claims. Should the City decide to waive the tort limits, additional premium would be charged and it
would be approximately 3.5% of the total premium, at a cost between $ 1,200 - $ 1,500.
BUDGET /FISCAL IMPACT: Waiving the tort limits would increase the premium.
ATTACHMENTS: Liability Waiver Form
REQUESTED COUNCIL ACTION: Authorize the Administrator to sign the Waiver form indicating that the
City does not waive the tort liability limits.
SECTION L: LIABILITY COVERAGE WAIVER FORM
Cities obtaining liability coverage from the League of Minnesota Cities Insurance Trust must decide
whether or not to waive the statutory tort liability limits 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 wo be able recover
v n o is
more than $500,000. on any claim to which the statutory tort limits apply. which a l l la
would be able to recover for a single occurrence to which the statutory y tort limits app not d e be
limted to $1,500,000. These statutory tort limits would apply regardless
purchases the optional excess liability coverage.
If the city waives the statutory to limits and does not purchase excess liability coverage, a single
claimant could potentially recover up to $1,500,000. on a single occurrence. 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 $1,500,000., regardless of the number of claimants.
If the city waives 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.
Claims to which the statutory municipal tort limits do not apply are not affected by this decision.
This decision must be made by the city council. Cities purchasing coverage must complete and
return this form to LMCIT before the effective date of the coverage. For further information, contact
LMCIT. You may also wish to discuss these issues with your city attorney.
accepts liability coverage limits of $ from the League of
Minnesota Cities Insurance Trust ( LMCIT).
Check one:
The city DOES NOT WAIVE the monetary limits on municipal tort liability established by
Minnesota Statutes 466.04.
The city WAIVES the monetary limits on tort liability established by Minnesota Statutes 466.04,
to the extent of the limits of the liability coverage obtained from LMCIT.
Date of city council meeting
Signature Position
Return this completed form to LMCIT, 145 University Ave. W, St. Paul, MN. 55103-2044