LMCIT is a not-for-profit organization formed by Minnesota cities in 1980—one of the first municipal self-insurance pools in the country. LMCIT’s unique partnership with the League of Minnesota Cities results in a holistic, one-stop-shop of services for members. In addition to workers’ compensation and property/casualty coverage, services provided range from loss control, to legal guidance, to advocacy, to media relations assistance.
LMCIT’s unique coverages for property, liability, auto, and workers’ compensation provides cities with protection for situations like land use litigation, diagnostic testing, auto accidents, cyber security, property damage caused by severe weather events, sewer backups, and much more. LMCIT understands the unique exposures faced by Minnesota cities and continually develops new coverages to address ever-changing needs. Instead of coverage exclusion, LMCIT emphasizes coverage inclusion. LMCIT staff have the expertise to address all coverage issues and concerns, giving busy city staff one less thing to worry about.
Because the private market can be inconsistent in its willingness to underwrite city coverages, the member-created and member-governed Insurance Trust has maintained a solid membership base for decades. Because members are committed to LMCIT’s not-for-profit philosophy, LMCIT is able to retain a healthy fund balance which in turn helps members avoid premium rate fluctuations. LMCIT funds not needed for claims, expenses, or reserves are returned to members as a dividend, which has happened in every year since 1987.
In addition to keep premiums stable, providing unique coverages, and returning funds when unneeded, LMCIT offers several voluntary risk management programs that help members reduce claims and avoid losses. LMCIT continuously evaluates its data and develops programs based on loss areas faced by Minnesota’s cities. Additionally, members share their best practices through LMCIT’s specialized programs in an effort to address the root causes of claims before they can happen – potentially saving premium dollars for all members.