The Trust understands unique exposures faced by cities and regularly develops new coverages to address ever-changing needs. The Trust’s staff members have expertise needed to address all coverage issues and concerns, giving busy city staff one less thing to worry about.
Cyber coverage restructuring
The Trust has developed a new Municipal First-Party Cyber Coverage form for first-party cyber risks, including coverage for:
- Breach response expenses
- Loss of revenue
- Data restoration
- Computer equipment restoration
These coverages were previously provided under the Trust’s property coverage, but it will now be placed in a new, standalone coverage document.
There will be a $250,000 aggregate limit per member for the new first-party coverage, but members will be allowed to increase the limit to $500,000 for an additional premium charge. Members seeking the $500,000 limit will be required to undertake certain loss control actions in 2022 and beyond. The Trust will focus on building loss control resources and will be developing additional requirements in the coming year. For the 2022 renewal term, members will need to attest to reading an excerpt developed by LMCIT about reducing computer security risks
There will also be a shared pool limit for first-party cyber claims. Members will share a $10 million limit for common causes, or similar cyber claims stemming from one event, and a $25 million aggregate limit over a 12-month period.
The liability coverage will remain unchanged with respect to coverage for cyber claims. There’s still a $2 million per occurrence limit with a $3 million aggregate limit.
Crime coverage sub-limit for fraudulent instruction claims (crime coverage)
Crime coverage with a $250,000 per occurrence limit is provided on a standard basis for members that have property coverage with the Insurance Trust. All cities carrying the Trust’s property coverage automatically receive $250,000 of coverage for crime losses by non-city employees. There will now be a sub-limit of $50,000 for certain claims resulting from an employee’s transfer of funds based on fraudulent instructions. All other crime coverage claims will still be subject to the full per occurrence limit, which is $250,000 in most cases.
High value auto sub-limit (auto physical damage coverage)
There will now be a $2 million limit for any covered automobile. If a member owns or acquires an automobile with a value of more than $2 million, the Trust can review and adjust limits, if appropriate, after carefully reviewing the exposure with the member.
Coverage clarifications for 2022
Out-of-state workers’ compensation exposure
The recent increase in employee telecommuting prompted the Trust to revisit workers’ compensation coverage for employees who work in other states. The coverage language no longer references the workers’ compensation law of any state. If members have employees who need coverage for work performed in other states, members should contact their agent or the Trust to find appropriate coverage from an insurer licensed to do business in that state.
Property in the open
Clarifications were made in the property coverage for how dugouts and athletic surfaces can be covered. In addition, explicit exclusions were adopted for guardrails and bollards (short posts used to create perimeters) — if members want to cover those items, it will require a special endorsement.
Pollutants, chemicals, biological weapons, and cyberattacks
A clarification was made for a sub-limit for property claims caused by terrorism involving the discharge of pollutants, chemicals, or biological weapons, and for losses, costs, and expenses resulting from a cyberattack.