Agenda - Council - 11/26/2024 - Laserfiche WebLink

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If the Statute Limits our Liability,why Purchase Higher Coverage Limits? There are several different reasons why cities should strongly consider carrying higher limits of liability coverage, The Statutory Tort Limits Elther.Do Not or May Not Apply to Several Types of Claims Some examples include: i Claims under federal civil rights laws, These include Section 1983, the Americans with Disabilities Act, etc, + Clalmsf or tort liability that the city has assumed by contract. This occurs when a city agrees in a contract to defend and indemnify a private party, 0 Claims for actions in another state. This might occur in border cities that have mutual aid agreements with adjoining states,or when a city official attends a national conference or goes to Washington to lobby,etc, • Claims'nos based on liquor sales, This mostly affects cities with municipal liquor stores,but it could � y also arise in connection with beer sales at a fire relief association fundraiser,for example, • Clan �'rt s based on a "taking" theory, Suits challenging landuse regulations frequently include an g �' " condemnation" claim alleging that the regulation amounts to a"taking"of the property, inverse condemnat� � g g g LMCiT's Primary Llahility Coverage has Ann ual Limits on Coverage for a few Speelfic Risks The table on page one lists the liability risks to which aggregate coverage limits apply, If the city has a loss or claim in one of these areas,there might not be enough limits remaining to cover the city'.s � fu ll exposure if there is a second loss of the same sort during the year, Excess liability coverage.gives the city additional protection against this risk as well, f However,there are a important restrictions on how the excess coverage applies to risks that Qw couple p are subject to aggregate limits: • coverage e does not apply to three risks: failure to supply utilities; mold; and `rltnfited The excess G V ag pp►� Pollution claims if either the pollutant release or the damage is below ground or in a body of p f eater; and • The excess.coverag e does not automatically apply l to liquor liability unless the city specifically � • requests it, The City may he Required b Contract to Carry Higher Coverage Limits f' y a y Occasional) a contract mi ht include a requirement the city carry more than$1,500,000 of coverage y� g limits. Carrying excess coverage is a way to meet these requirements. (There's also another option 2