III.3. Renewal of General Liability and Property Insurance and Authorization to Not Waive Statutory Tort Liability on the League of Minnesota Cities Insurance Trust CITY OF HOPKINS
HRA Board Report 2023-05
To: Honorable Mayor and Council Members
Mike Mornson, City Manager
From: Nick Bishop, Finance Director
Date: November 14, 2023
Subject: Renewal of General Liability and Property Insurance and Authorization to
Not Waive the Statutory Tort Liability on the League of Minnesota Cities
Insurance Trust Policy
_____________________________________________________________________
RECOMMENDED ACTION
MOTION TO approve renewal of the LMCIT Insurance Policy for the HRA and to not
waive the statutory tort limits to the extent of the coverage purchased.
OVERVIEW
The renewal date for the HRA Insurance Policy was 11/1/2023 and is for a one-year
period. The premium for this term is $20,819 compared to $17,906 last year, which is
about a 16% increase. The increase is attributed to increases in the property value of
about 11.5% to account for inflation factors, and a 5% rate increase in the property,
general liability and automobile lines of coverage. The average rate increase over a
five-year period is approximately 5.1%
2019-20 2020-21 2021-22 2022-23 2023-24
Total Premium 17,367.00 18,969.00 19,722.00 17,906.00 20,819.00
Policy Year
Adoption of the motion will result in staff continuing with LMCIT insurance
coverage. Staff recommendation to not waive the statutory tort liability limits is based
on liability exposure to the city in the form of higher premiums.
SUPPORTING INFORMATION
•Election of waiver of tort limits for liability
Finance Department
League of Minnesota Cities 3/2/2023
Liability Coverage Waiver Form Page 1
LIABILITY COVERAGE WAIVER FORM
Members who obtain liability coverage from LMCIT must decide whether to waive the statutory tort liability limits to
the extent of the coverage purchased. The decision to waive or not waive the statutory tort limits must be made
annually by the member’s governing body, in consultation with its attorney if necessary. The decision has the
following effects:
•If the member does not waive the statutory tort limits, an individual claimant could recover no more than $500,000 on
any claim to which the statutory tort limits apply. The total all claimants could recover for a single occurrence to
which the statutory tort limits apply would be limited to $1,500,000. These statutory tort limits would apply
regardless of whether the member purchases the optional LMCIT excess liability coverage.
•If the member waives the statutory tort limits and does not purchase excess liability coverage, a single claimant could
recover up to $2,000,000 for a single occurrence (under the waive option, the tort cap liability limits are only waived
to the extent of the member’s liability coverage limits, and the LMCIT per occurrence limit is $2,000,000). The total
all claimants could recover for a single occurrence to which the statutory tort limits apply would also be limited to
$2,000,000, regardless of the number of claimants.
•If the member 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. The total all claimants could recover for a
single occurrence to which the statutory tort limits apply would also be limited to the amount of coverage purchased,
regardless of the number of claimants.
Claims to which the statutory municipal tort limits do not apply are not affected by this decision.
LMCIT Member Name: __________________________________________________________________________
______________________________________________________________________________________________
Check one:
☐The member DOES NOT WAIVE the monetary limits on municipal tort liability established by Minn. Stat. §
466.04.
☐The member WAIVES the monetary limits on municipal tort liability established by Minn. Stat. § 466.04, to the
extent of the limits of the liability coverage obtained from LMCIT.
Date of member’s governing body meeting:___________________________________________________________
Signature: _____________________________________________________________________________________
Position: _______________________________________________________________________________________
Members who obtain liability coverage through the League of Minnesota Cities Insurance Trust
(LMCIT) must complete and return this form to LMCIT before their effective date of coverage.
Email completed form to your city’s underwriter, to pstech@lmc.org, or fax to 651.281.1298.