Agenda - Council - 06/28/1988 - Laserfiche WebLink

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League of Minnesota Cities 183 University Ave. East St. Paul, MN 55101.2526 (612) 227.5600 (FAX: 221.0986) f?j).7S(!)' ~[ lE?j" ~r &,',7,., . - U I' .1\ " ;;;:> ,_, LS'>"l. ( ...... ....' -., 'Ill .~ Ii MAY 1 !J 19P; '~~~ '., I ~ \~ - f1 ~ .'f- l _.:r :l.&. [)u P. ~ , . fJ _ IJ b iJ'... fI U"1.. .....4-.U May 6, 1988 To: City officials and insurance agents From: League of Minnesota Cities Insurance Trust Re: Inverse condemnation and pollution liability coverages Member cities of the League of Minnesota cities Insurance Trust can now add liability coverage for certain pollution exposures and for inverse condemnation liability arising out of zoning and other land use regulations. The city can add either or both coverages, either at renewal or as a mid-term endorsement. Copies of the endorsements are attached. POLLUTION COVERAGE LMCIT is now offering to member cities an endorsement which adds back coverage for certain pollution exposures, replacing the strict pollution exclusion currently used. The optional limited pollution liability endorsement gives the city coverage for property damage or bodily injury caused by a release or discharge of pollutants, where three conditions are met: 1) the release is accidental; 2) the release occurs entirely above ground; and 3) the release begins and ends within 72 hours of the accident. The endorsement also adds back coverage for liability stemming from the use of mace, tear gas, or similar substances. Obviously, this does not provide a solution to all of a city's exposures to pollution liability. Landfills and underground storage t'anks are two examples of exposures that would not be covered. However, it will provide protection for things like a malfunctioning ventilation system in a city building, or an accidental spill of herbicides by park maintenance workers. The pollution coverage is subject to a $600,000 annual aggregate limit, including defense costs. The cost of adding the pollution coverage is 3.5% of the city's liability premium. INVERSE CONDEMNhTION LIABILITY FOR LAND USE REGULATION In a 1987 decision, the U.S. Supreme court ruled that a city could be held liable for a temporary taking of private property resulting from enforcement of a zoning ordinance or other land use regulation. This is a new liability exposure for cities; in the past, courts would bar future enforcement of an ordinance which went too far, but generally would not award damages. The Ift/8