The Board of Trustees reviews the Trust’s coverage every year to ensure it responds to the unique exposures faced by Minnesota’s cities. Many suggestions come from members and their insurance agents.

What follows are coverage changes going into effect for property/casualty coverages renewing on or after Nov. 15, 2019, and for workers’ compensation coverage renewing on or after Jan. 1, 2020.

Property coverage

Mobile property blanket threshold

Mobile property (e.g., items often moved from one place to another such as bobcats, lawnmowers, tools, and firefighter turnout gear) will now be covered on a blanket basis up to a $250,000 per unit limit. The previous threshold was $100,000. The higher limit will reduce the administrative burden of tracking, requesting, and scheduling higher limits for specific units with values between $100,000 and $250,000. If a limit higher than $250,000 is needed for an individual unit, it can be increased by endorsement for an additional premium charge.

Blanket coverage for seasonal or temporary buildings

Automatic coverage of up to $50,000 per building will be provided for buildings that are temporarily (i.e., a period of less than 12 months) installed or located on city property that are in the city’s care, custody, and control. An example is a portable warming house.

First party cyber coverage aggregate

A $2 million annual aggregate will now apply for the following three cyber exposures:

  • Data security breach expenses (i.e., costs associated with responding to an actual or suspected breach).
  • Loss of revenue, extra expense, and expediting expense arising from unauthorized intrusive codes or programming, such as computer viruses or hacking.
  • The cost to reproduce or restore electronic data as a result of unauthorized intrusive codes or programming, such as computer viruses or hacking.

This change means $2 million is the most the Trust will pay for all claims, occurrences, or incidents for these cyber coverages during a member’s coverage term. The aggregate limit will not apply for the following other cyber-related coverages: liability coverage for system security breaches, Payment Card Industry (PCI) and regulatory fines and penalties arising from data security breaches, physical property damage, cyber causes of loss in the auto coverages, or cyber causes of loss in the crime or bond coverages.

New property reproduction cost endorsement

A new endorsement will be added for buildings owned by members that have historical significance. It more clearly defines the enhanced way in which the member and the Trust intend to repair, rebuild, or replace a historical building if there is a loss.

Post-factory auto attachments

Damage to attachments or equipment that is added to members’ autos, that were not standard from the factory, are covered under the mobile property coverage. Coverage wording is updated to reinforce the existing coverage intent.

Liability coverage

Land use coverage

The land use incentive will be discontinued for renewals happening on or after Nov. 15, 2020. Members currently qualifying for the incentive will continue to do so through their 2019-2020 coverage term. Once the incentive ends, the standard coverage limits provided to all members that incur a land use claim are:

  • 85% of the first $250,000.
  • 60% of amounts above $250,000.
  • 50% of necessary legal fees members incur prior to reporting litigation to the Trust.
  • $1 million annual aggregate limit.

PCI assessments

Members already have a $250,000 annual aggregate limit for PCI fines and penalties. The Trust is adding “assessments” into this limit as well. Assessments refer to the cost of a credit card company to do an assessment of whether a merchant (i.e., a member) complies with applicable PCI-Data Security Standards. If there is an actual breach, the member could be required to complete an assessment and pay for the cost of an assessment.

Aggregate limit for sexual abuse and molestation claims

A $3 million annual aggregate limit for claims arising out of sexual abuse or molestation will be built into the liability coverage. This is the most the Trust will pay per member’s coverage term, regardless of the number of incidents, victims, or locations a perpetrator is or was involved in.

Supplementary payments — covered party’s loss of earnings

If the Trust requests a member to assist in the investigation or defense of a claim, it will pay for reasonable expenses incurred by the individual(s). The reference to a $200 per day cap on the reimbursement of loss of earnings expenses will be removed.

Auto coverage

Auto physical damage coverage enhancement endorsement

The title of endorsement, “Limited Replacement Cost Endorsement,” will be changed to “Auto Physical Damage Enhancement Endorsement.” The endorsement applies for specific autos, typically relatively new vehicles that are in good condition. It provides for the lesser of: (1) the cost to repair; (2) the cost of an equivalent, new auto; or (3) 200% of the actual cash value of the auto.