Agenda - Council - 01/27/2009 - Laserfiche WebLink

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Exposure Current annual aggregate limit Defense costs subject to the agg. limit? Electromagnetic fields $2,000,000 No Employers liability (work comp) $.1,500,000 No Failure to supply utilities $2,000, No Land use $1,000,000 Yes Limited pollution (lead and asbestos; sudden and accidental release of pollutants; herbicide and pesticide application; sewer ruptures, overflows and backups) $2,000,000 Yes Mold $2,000,000 No Outside Organizations $100,000 Yes Products / completed operations $2,000,000 No Below is a summary of the aggregate limits for 2008 -2009. Excess liability coverage If your city carries excess liability coverage, your city will have $300,000 more coverage limits available after the July 1, 2009, switch. Cities that carry $1 million of excess coverage currently have $2.2 million of total limits available - $1.2 million under the primary coverage plus $1 million of excess coverage. After the change, cities will have $2.5 million of total limits - $1.5 million of primary coverage plus $1 million of excess coverage. Decision to waive or not waive the statutory liability limits At each renewal, LMCIT members must decide whether to waive the statutory liability limits. The changes in LMCIT's coverage limits don't affect that decision. Whatever your city decided at the last renewal will remain in effect unless you tell us differently. If your city has chosen not to waive the statutory limits, the amount that claimants can recover will vary depending upon the date of the occurrence (assuming it's a kind of claim to which statutory limits apply). Even though "non- waiver" cities now have $1.5 million of coverage available, the $400,000/$1.2 million statutory limit will still apply to claims arising from events that occurred before July 1, 2009. For claims arising from events that occur on or after July 1, 2009, the $500,000/$1.5 million statutory limit will apply. If your city has chosen to waive the statutory limits, however, the amount that claimants can recover will increase when LMCIT coverage limits change. For "waiver" cities, on any claim made after July 1, 2009 (or after the city's renewal if earlier), one or more claimants could now recover up to $1.5 million per occurrence, regardless of whether the occurrence was before or after July 1, 2009.