HomeMy WebLinkAbout20091207 - VI-13
MEMO
TO: Honorable Mayor and City Council members
FROM: Charlene Stark, Finance Director
RE: Liability Coverage-Waiver Form
DATE: November 30, 2009
Cities obtaining liability coverage from the League must decided whether to or
not waive the statutory tort liability limits to the extent of coverage purchased. It
has been the City’s practice to opt for the waiver and to purchase excess liability
coverage. Due to budget constraints the 2010 budget has eliminated this excess
liability coverage. Thus this year we will not waive the monetary limits on
municipal tort liability established by Minnesota Statues 466.04. An individual
claimant would be able to recover no more than $500,000 on any claim to which
the statutory tort limits apply. The total which all claimants would be able to
recover for a single occurrence to which the statutory tort limits apply would also
be limited to $1,500,000 regardless of the number of claimants. In the past years
the City purchased additional coverage which allowed the amounts to be up to
the amount of excess liability insurance purchased.
If you should have questions regarding this information, please feel free to
contact me.
Council Action Requested
The council is asked to not waive the monetary limits on tort liability established
by MN Statutes 466.04, to the extent of the limits of the liability coverage
obtained by LMCIT.