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7 <br /> LEAGUE o CONNECTING & INNOVATING <br /> M.INNESO'I-A SINCE 1913 <br /> CITIES <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 the statutes provide;and the city can select <br /> from among several liability coverage limits. This memo discusses these options and identifies <br /> some issues to consider in deciding which of the options best meets the city's needs. <br /> Statutory Limits on Municipal Tort Liability <br /> The statutes limit a city's tort liability to a maximum of$500,000 per claimant and$1,500,000 per <br /> occurrence. These limits apply whether the claim is against the city, against the individual officer or <br /> employee, or against both. <br /> Coverage Limits for LMCIT's Basic Primary Liability Coverage <br /> LMCIT's liability coverage provides a limit of$1,500,000 per occurrence, matching the per- <br /> occurrence part of the statutory municipal tort liability limit. Beside the overall coverage limit of <br /> $1,500,000 per occurrence,there are also annual aggregate limits(that is, limits on the total amount <br /> of coverage for the year regardless of the number of claims), for certain specific risks. Aggregate <br /> limits apply to the following: <br /> Products $2,000,000 annually <br /> Failure to supply utilities $2,000,000 annually <br /> EMF $2,000,000 annually <br /> Limited pollution* $2,000,000 annually <br /> Mold $2,000,000 annually <br /> Land use litigation** $1,000,000 annually <br /> Employers liability work comp) $1,500,000 annually <br /> * Includes sudden and accidental releases of pollutants; <br /> herbicide and pesticide application; sewer ruptures, overflows More Information <br /> and backups; and lead and asbestos claims. Dredging or <br /> excavation claims are subject to a$250,000 sublimit. These For more information about land <br /> limits apply to both damages and defense costs. use litigation coverage, please see <br /> ** Coverage is provided on a sliding scale percentage basis, the memo LMCIT Coverage for <br /> which is based on participation in LMCIT's online land use Litigation Relating to Land Use. <br /> training. Coverage applies to both damages and litigation )l <br /> MMMMMW <br /> costs. <br /> LEAGUE OF MINNESOTA CITIES 145UNweasrrvAVE.WESF mow:(651)281-1200 FAX:(651) 281-1298 <br /> INSURANCE TRUST ST VAui..,diN 35103-20-14 TOLLMr,.:E:(800)925-1122 WEB!W%MU.,�,iC..01K! <br />