HomeMy WebLinkAboutVI-04 - Declaring Insurance Liability Coverage
City Council Memorandum
To: Mayor Hicks & City Councilmembers
From: Julie Flaten, Administrative Services Director
Date: December 17, 2018
Item: Liability Coverage - Waiver
Council Action Requested:
Approve the resolution to not waive the monetary limits on tort liability established by
MN Statues 466.04, to the extent of the limits of liability coverage obtained by the League
of Minnesota Cities Insurance Trust.
Background Information:
The City’s insurer, the League of Minnesota Cities Insurance Trust (LMCIT), requires
that the City Council make an affirmative action whether or not they will waive the
monetary limits on tort liability established by MN Statues 466.04 to the extent of the
limits of liability coverage obtained by the LMCIT.
Since 2010 City Council has chosen not to waive the tort immunity, which limits an
individual to recover no more than $500,000 on any claim to which the tort immunities
apply. The single occurrence limit under state law in $1,500,000. If the City Council
were to waive the tort immunity, an individual could collect or recover up to the per
occurrence limit. The premium impact would be approximately an increase of 3% if the
tort immunity was waived.
Financial Impact:
Premium savings
Advisory Commission Discussion:
N/A
Council Committee Discussion:
N/A
Attachments:
Resolution
VI-04
CITY OF HASTINGS
DAKOTA COUNTY, MINNESOTA
RESOLUTION 12-XX-18
RESOLUTION DECLARING INSURANCE LIABILITY
FOR THE CITY OF HASTINGS
WHEREAS, the City of Hastings obtains liability insurance coverage from the
League of Minnesota Cities; and
WHEREAS, the League requires the City Council to establish the level of
liability insurance coverage by resolution for the City, and;
WHEREAS, the City, since 2010, has opted to not waive the monetary limits on
municipal tort liability established by Minnesota Statues 466.04, and;
NOW, THEREFORE BE IT RESOLVED, that the Hastings City Council does
hereby declare to not waive the monetary limits on municipal tort liability and to not
purchase excess liability insurance.
Adopted this 17th day of December 2018,
_______________________________
Paul Hicks, Mayor
Attest:
_____________________
Julie Flaten, City Clerk
VI-04