Agenda - Public Works Committee - 05/21/2019

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LMCIT liability coverage for the receiving city will respond to liability claims against the sending city’s employees that arise in the course of providing emergency assistance. This is because employees of the sending city are deemed to be employees of the receiving city for tort liability purposes under 12.331. For auto liability claims that arise from using the sending city’s licensed vehicles in providing emergency assistance, both cities’ coverage could theoretically apply. Where both cities are LMCIT members, LMCIT will treat the receiving city’s LMCIT auto liability coverage as primary in this situation. In many cases, the city providing assistance will send vehicles and equipment, along with employees to operate them. In those cases, the vehicle is not considered to be a “borrowed” vehicle for the city that’s receiving the assistance, and that vehicle is therefore not covered by the receiving city’s auto physical damage coverage. Damage to the vehicle or equipment would be covered under the sending city’s auto physical damage coverage. The vehicle is considered a “borrowed” vehicle only if it’s being operated by and is in the care, custody, and control of, the city receiving assistance. If that’s the case – a city sends its vehicles to be operated by the receiving city’s employees or volunteers – then the receiving city’s auto physical damage coverage is primary. When a city employee operates his or her own vehicle on city business, including responding to an emergency in another community, that vehicle is not considered to be a “borrowed” or “leased” vehicle. The receiving city’s auto physical damage coverage through LMCIT therefore won’t cover damage to the vehicle; nor will the sending city’s LMCIT coverage. Physical damage to an employee’s car is at his or her own risk, just as it would be in his or her own city limits. What if my city borrows or rents vehicles or equipment from someone who is not a LMCIT member city? The city’s LMCIT municipal liability and auto liability coverage will automatically respond to liability claims arising from the operation of vehicles or equipment that the city borrows or rents in an emergency. It is not necessary to schedule each individual vehicle in order to have coverage. LMCIT blanket property coverage would cover any physical damage to vehicles or equipment you borrow or rent, up to a sublimit of $500,000, as long as the equipment is in the city’s care, custody and control. There are a few cities who choose not to cover their small-value equipment at all. If your city doesn’t have coverage for its own small-value mobile property, you don’t have coverage for small-value equipment you borrow or lease either. 3