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. Here is information about coverage changes going into effect for property/casualty coverages renewing on or after Nov. 15, 2020, and for workers’ compensation coverages renewing on or after Jan. 1, 2021.

Property coverage

Removal of organic pathogen cleanup coverage

The coverage for expenses to clean up or remove organic pathogens will be removed. Currently, each member is provided $250,000 for these kinds of expenses during each coverage term for organic pathogens that are on the list of communicable diseases for which federal isolation and quarantine are authorized by the president’s executive order or Communicable Diseases of Public Health Significance as defined by the U.S. Department of Health and Human Services. Things like tuberculosis, infectious syphilis, and COVID-19 are on the list or are authorized by a presidential executive order. The coverage is being removed because members have never previously encountered or reported cleanup costs for diseases on the federal lists, and since these diseases can become widespread, the aggregation of many relatively small claims for members could become a cumulative burden for the Trust.

Addition of police dog definition

The Trust provides coverage for police dogs that are injured and unable to perform normal functions. A definition is being added as follows to clarify what constitutes a police dog: Police dog means a dog that is specifically trained to assist police and other law enforcement personnel in duties like apprehending suspects and searching for and locating drugs, explosives, crime scene evidence, and missing people. Police dog does not include comfort or therapy dogs.

Reinforcement of loss of revenue exclusions

The Trust provides loss of revenue coverage if there is direct physical damage to covered buildings that causes loss of revenue due to a necessary suspension of operations while the building is replaced or repaired. Existing exclusions related to organic pathogens or infectious disease are being confirmed, including that a government-ordered shut down does not trigger coverage.

Liability coverage

Creation of a $250,000 annual aggregate sublimit for organic pathogen claims

The Trust currently provides $2 million per occurrence in liability coverage for organic pathogen claims, subject to a $3 million annual aggregate limit. Coverage for organic pathogen claims will be restricted to a $250,000 annual aggregate limit, with defense costs encompassed within the limit. This will reduce the potential for a severe aggregation of claims that could become an undue burden for the Trust. The change will also clarify the aggregate limit applies for both municipal liability and auto liability claims.

Auto liability coverage

Clarification of organic pathogen liability coverage involving autos

A clarification will be added that an organic pathogen claim is not excluded under the auto liability coverage. A $250,000 aggregate limit will apply for organic pathogen claims regardless of whether claims are made under municipal liability, auto liability, or both.

Workers’ compensation coverage

Creation of a covered entities endorsement

An endorsement will be created that lists all entities covered by a workers’ compensation coverage agreement. This will make it easier and less cumbersome to find covered entities.

Extraordinary expense coverage

Increase in total funding available

Total funding available for claims submitted under the Trust’s extraordinary expense coverage will be increased from $3 million to $5 million. This coverage provides up to $250,000 per member per coverage term for extraordinary and unanticipated expenses a member incurs, which must be paid back to the Trust within five years. This change reflects both the inflation that has taken place since the coverage was first created and the possibility that additional members may request it in light of unexpected expenses arising from the current pandemic.