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· A formally organized membership organization · A professional organization · Any for-profit or non-profit corporation These new provisions and limits don't affect city relief associations, which are already automatically covered under the city's LMCIT liability coverage. Nor do these changes affect joint powers entities or other governmental entities such as HRAs, utilities commissions, port authorities, etc. (Information on how coverage works for these types of entities is available on the League website. Contact LMCIT with any questions.) Finally, these provisions and limits don't affect any entity that's named as a covered party on the city's coverage. What should the city do to manage these risks? As a first step, it's a good idea to find out what organizations your city employees are involved in as members or officers, that might arguably be considered to be city-related. You'll also want to find out what the purpose of each organization is and what sorts of activities the organization is involved in. . In some cases, the city might determine that participation in a particular organization is not part of the city employee's city duties. In such a case, the city should let the employee know that if slhe chooses to participate in the organization, slbe is doing so on hislher own. It is a good practice to provide that information to the employee in writing. In other cases, the city might conclude that an employee should be encouraged or even required to participate in a particular organization. In those cases, the city will want to find out whether the organization has liability coverage to protect its members and officers for claims arising from those activities. If the organization hasn't done anything to cover the liability risks its officers and members face because of the organization's activities, the city has several options: · You might decide that the city is comfortable simply assuming the risk that the damages and defense costs for a liability claim against a city employee arising from his/her activities in the organization will be greater than the $100,000 limit. (In evaluating that risk, note that for unpaid officers or members of a non-profit corporation, M.S. 317 A.257 provides some, but by no means complete, protection from liability claims.) · You might decide that participating in the organization will not be considered part of the employee's city duties. In that case, of course, the city should make sure the employee understands that if s/he chooses to participate, s/he is doing so on hislher own. · The city may want to encourage the organization to get liability coverage. (In some cases depending on the organization's purpose and structure, the organization may be eligible to obtain coverage through LMCIT.) Questions? Contact Pete Tritz (651-281-1265; ptritz@lmnc.org) or Ann Gergen (651-281- 1291; agergen@lmnc.org) at the League office. 3