HomeMy WebLinkAbout[04e] Liability Insurance
Council Agenda Item 4e
MEETING DATE: December 18, 2017
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 $ 500,000 or $ 1,500,000 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 $
2,000,000 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 $ 2,500 - $ 3,500.
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.
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