4.3 SR 03-18-2024City of
Elk -
River
To
City Council
Meeting Date
March 18, 2024
Item Description
Annual Approval Electing Not to Waive the
Statutory Tort Limits for Liability Insurance
Request for Action
Item Number
4.3
Prepared By
Lori Stich, Finance Manager
Reviewed by:
Lori Stich
Joe Stremcha
Cal Portner
Tina Allard
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 a "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 I,
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 claims 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 Council approved Resolution 13-34 electing not to waive the statutory tort limits for
The Elk River Vision
A avelcoming community zvitb revolutionary and spirited resourcefulness, exceptional service, and community p p W E R E U A Y
engagement that encourages and inspires prosperity
229
liability insurance. This resolution allows the statutory limits to remain in place until the Council changes this
election.
Financial Impact
N/A
Mission/Policy/Goal
Attachments
Resolution Elect Not to Waive Statutory Tort Limits 06-2013
Page 34 of 229
A 711771-111
WFIEES, The City of Elk River participates in the League of Minnesota Cities
Insurance Trust (LMCIT) insurance program; and
161E REAS, 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, IT RESOLVEDthat 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 V day of June 2013.
ATTEST:
Tina Allard, City Clerk
01 n J. Dietz, May r
NAPublic Bodies\Agenda Packets\06-03-2013\Final\Done\x4.7 atl.doc
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