CCP 04-08-1996 - Laserfiche WebLink

Home Browse Search

I - I ~ 145 University Avenue West .. League of Minnesota Cities St. Paul, MN 55103-2044 EXCESS LIABILITY COVERAGE AND LIMITS I The League of Minnesota Cities Insurance Trust offers cities two options in purchasing excess I liability coverage: . LMCIT makes it possible for cities to obtain excess coverage without waiving the statutory I liability limit of $600,000 per occurrence. Under this option, the higher excess coverage limits would be available only for those claims which are not covered by the statutory limits. I Alternately, cities may choose to waive the statutory liability limits to the extent of the excess . liability coverage purchased. Under this option, the higher coverage limits would be available I for all claims, including claims to which the statutory liability limits would apply. Cost I , The city's premium for excess coverage are approximately 25% lower if the city chooses not to eI waive the statutory monetary liability limits. Background I LMCIT's basic liability coverage provides limits of $600,000 per occurrence. LMClT also offers I cities the option of an additional $1 million, $3 million, or $5 million of liability coverage limits. Since the statutes provide that cities and city officials and employees can't be held liable for I amounts over $600,000 per occurrence, city officials often ask why it would ever make sense to buy coverage limits higher than $600,000. There are several reasons why a city might choose to buy limits of coverage greater than the I statutory liability limits: I First, the city is exposed to some kinds of liability to which the statutory limits either don't or might not apply. Some possible examples are: I . liability under the federal civil rights act . I . certain types of liability tllat the city has assumed contractually, in an indemnification agreement for example .. AN EqUAL OPPORTUNITY/AFFIRMATIVE ACTION EMPLOYER (6l2)281-l200 (800) 925-1122 TDD(612)281-1290 Fax1612l281-11