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Shakopee City Council
August 5, 2020
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| | | | | | | | | FROM: | Nate Reinhardt, Finance Director | | TO: | Mayor & City Council Members |
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| | | | | | | | Subject:
A determination that the city will not waive the monetary limits on tort liability coverage for the upcoming League of Minnesota Cities Insurance Trust (LMCIT) property and liability insurance renewal. | | |
| | | | | | | | Policy/Action Requested:
To elect not to waive the monetary limits on tort liability. | | |
| | | | | | | | Recommendation:
Approve the motion to elect not to waive the monetary limits on tort liability. | | |
| | | | | | | | Discussion:
Each year the LMCIT asks whether the city wishes to waive the monetary limits on tort liability established by state law, Minnesota Statue 466.04. While this is a routine action, the League specifically requires council action. The city's past practice has been not to waive the limits.
Assuming the council does not waive the limit, there would be a liability limit of $500,000 for a single claimant and $1,500,000 for all claimants for a single occurrence. | | |
| | | | | | | | Budget Impact:
If the council chooses not to waive coverage, there is no financial impact. However, if it does waive coverage limits, there would be an additional cost for increased insurance premiums. | | |
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