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C <br />M <br />I.q. of Minnes <br />Cia" pr w —trn waoaffonw <br />League of Minnesota Cities <br />Insurance Trust <br />145 University Avenue West, St Paul, MN 55103 -2044 <br />(651) 281 -1200 • (800) 925 -1122 <br />Fax: (651) 281 -1298 • TDD: (651) 281 -1290 <br />www.Imnc.org <br />RISK MANAGEMENT INFORMATION <br />LMCIT LIABILITY COVERAGE OPTIONS <br />Liability Limits, Coverage Limits, and Waivers <br />LMCIT gives cities several options for structuring their liability coverage. The city can choose <br />either to waive or not to waive the monetary limits that the statutes provide; and the city can <br />select from among several liability coverage limits. This memo discusses these options and <br />identifies some issues to consider in deciding which of the options best meets the city's needs. <br />What are the statutory limits on municipal tort liability? <br />The statutes limit a city's tort liability to a maximum of $300,000 per claimant and $1,000,000 <br />per occurrence. These limits apply whether the claim is against the city, against the individual <br />officer or employee, or against both. <br />What are the coverage limits for LMCIT's basic primary liability coverage? <br />LMCIT's liability coverage provides a limit of $1,000,000 per occurrence, matching the per - <br />occurrence part of the statutory municipal tort liability limit. Under the basic coverage form the <br />$300,000 per claimant part of the statutory liability limit is not waived, so if the statutory limit <br />applies to the particular claim, LMCIT and the city would be able to use that limit as a defense. <br />Beside the overall coverage limit of $1,000,000 per occurrence, there are also annual aggregate <br />limits (that is, limits on the total amount of coverage for the year regardless of the number of <br />claims), for certain specific risks. Aggregate limits apply to the following: <br />Products / completed o erations <br />$1,000,000 annuall <br />Failure to su 1 utilities <br />$1,000,000 annuall <br />EMF <br />$1,500,000 annuall <br />Limited pollution* <br />$1,000,000 annuall <br />Lead and asbestos* <br />$200,000 annuall <br />Mold <br />$1,500,000 annuall <br />Land use liti ation ** <br />$1,000,000 annuall <br />Employers liability (work com <br />$1,000,000 annuall <br />* The limit applies to both damages and defense costs. <br />** Coverage is on a sliding scale percentage basis, and applies to both damages and litigation <br />costs. <br />—118- <br />