4.8. SR 05-07-2018
Request for Action
To Item Number
Mayor and City Council 4.8
Agenda Section Meeting Date Prepared by
Consent May 7, 2018 Lori Ziemer, Finance Director
Item Description Reviewed by
Annual Election Not to Waive the Statutory Tort Cal Portner, City Administrator
Limits for Liability Insurance
Reviewed by
Action Requested
Elect, by motion, not to waive the statutory tort limits for liability insurance.
Background/Discussion
The City of Elk River secures its liability, property, casualty, automobile, and workers compensation
insurance coverage through the League of Minnesota Cities Insurance Trust (LMCIT). As a condition of
renewal the city must annually execute an “LMCIT Liability Coverage Waiver Form” and:
1. Determine whether to waive the statutory liability limits; and
2. Determine whether to acquire excess liability insurance coverage.
As established by Minnesota Statute 466.04, the statutory liability limits for claims that occur after July 1,
2009 are $500,000 per claimant and $1,500,000 per occurrence.
Annually, the City Council must review and make an election of one of the following three options
(claims to which the statutory municipal tort limits do not apply are not affected by this decision):
1. Not to waive the statutory tort limits – staff recommendation
If the city does not waive the statutory tort limits, an individual claimant would be able
to recover no more than $500,000 on any claim and the total for a single occurrence
would be limited to $1,500,000 to which the statutory tort limits apply.
2. Waive the limits and not purchase excess liability coverage
If the city waives the statutory tort limits and does not purchase excess liability coverage,
a single claimant could potentially recover up to $2,000,000 on a single occurrence.
3. Waive the limits and purchase excess liability coverage
If the city waives the statutory tort limits and purchases excess liability coverage, a single
claimant could potentially recover an amount up to the limit of the coverage purchased.
On June 3, 2013, the City Council approved Resolution 13-34 electing not to waive the statutory tort
limits for liability insurance. This resolution allows the statutory tort limits to remain in place until the
Council changes this election.
Financial Impact
N/A
Attachments
Resolution 13-34 Electing Not To Waive The Statutory Tort Limits For Liability Insurance
RESOLUTION 13-_ 34 .
A RESOLUTION OF THE CITY OF ELK RIVER
A RESOLUTION ELECTING NOT TO WAIVE THE
STATUTORY TORT LIMITS FOR LIABILITY INSURANCE
WHEREAS, The City of Elk River participates in the League of Minnesota Cities
Insurance Trust (LMCIT) insurance program; and
WHEREAS, The LMCIT requires annual approval of the city's intent to waive or not
waive the statutory limits on tort liability as set forth in Minnesota Statutes;
and
WHEREAS, The City Council has evaluated whether to waive the limit of tort liability and
whether to purchase excess liability coverage from the LMCIT.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Elk
River elects not to waive the statutory tort liability limit established by Minnesota Statute
466.04.
Passed and adopted this 3`d day of June 2013.
ATTEST:
Lk2
Tina Allard, City Clerk
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