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

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for cities in this situation, LMCIT can issue an endorsement to increase the city's coverage limit only for claims relating to that particular contract, There's a small charge for these"laser" endorsements,} There may be more than One Political Subdivision Covered Under the City's Coverage An HRA,EDA, or port authority is itself a separate political subdivision, If the city EDA,for example, is named as a covered party on the city's coverage and a claim we're made that involved both the city and the EDA,theoretically the claimant might be able to recover up to $1,500,000 from both the city and the EDA, since there'are two political subdivisions involved. Excess coverage is one way to provide enough coverage limits to address this situation, Another solution is for the HRA, EDA,or port authority to carry separate liability coverage in its own name, This issue of multiple covered patties can also arise is if the city has agreed by contract to name p another entity as a covered party, or to defend and indemnify another entity, Cities Sometimes Carry Higher Coverage Limits Because of a Concern the Courts Might overturn the Statutory Liability Limits However,those limits have now been tested and upheld several times in Minnesota, while it's always possible that a future court might decide to throw out the statutory limits,this is now less o a concern, Available Excess Liability Coverage Limits Excess covera e is available in$1 million increments,up to a maximum of$5 million, g Does the Optional Excess Coverage Apply to All Types of Claims? No. The excess liabili coverage does not apply to the following types of claims: certain limited . pollution claims' mold,claims; claims for failure to supply utilities; auto no-fault claims;uninsured I underinsuied motcompensation,-disability,ori�st claims workers' or unemployment claims; or claims under the medical payments coverage, Who Needs Excess Liability Coverage? coverage is even more important to a small city rather than to a large city. If anything,excess liabilltY g p If a cityends up with more liability than it has coverage,the city will have to either draw on existing. � r funds or o to its taxpayers to pay that judgment. A large city faced with, say,a million dollar g s of F ' ` n above what its LMCIT coverage pays might be able to spread that$1 million cost liability over and g p �' I;. over several thousand taxpayers, The small city by contrast might be dividing that same$I million re taxpayers, 1 million divided among 5,000 taxpayers is$200 cost among only a couple hundred $ g apieceannoying -�anno in but probablyat least manageable for most taxpayers, $1 million divided among 200 taxpayers is $5,000 apiece—enough to be a real problem for many, r y i i f ' 3 1 I l 2