The League of Minnesota Cities Insurance Trust understands the unique exposures faced by members and regularly develops new coverages to address their ever-changing needs. The following coverage changes apply to members whose property/casualty coverage renews on or after Nov. 15, 2023, and workers’ compensation renewing on or after Jan. 1, 2024. Members are urged to examine the coverage document for actual wording. In all cases, those documents determine coverage, exclusions, and limitations.

Access a glossary of Trust-related terms.

Auto coverage

Pollutant cleanup

The auto liability coverage has been broadened to include costs members are legally obligated to pay to clean up pollutants that are suddenly and accidentally released as the result of the ownership, maintenance, or use of an auto. It is subject to a $50,000 per occurrence sub-limit and $100,000 annual aggregate limit.

Coverage for municipal cannabis sales

The Trust has defined two categories of cannabis products for purposes of coverage:

  1. Low-potency edibles or infused drinks (cannabinoid products) sold at municipal liquor stores that are legal and authorized under state law. These products were legalized in Minnesota in 2022 with authority for municipalities to sell in 2023.
  2. Other types of cannabis products that were legalized in 2023 and involve higher potencies and more ways to consume, such as inhalation.

The Trust will not exclude damages arising out the sale of low-potency cannabinoid products that fall within the requirements specified in Minn. Stat. § 151.72, subd. 4, 5, and 5a. The Trust will, however, otherwise exclude damages relating to the sale of cannabis products. The Trust Board determined the exclusion was appropriate because of the uncertain status of cannabis products under federal law, which we will continue to monitor. In the meantime, the Trust is working to find a specialty insurer that can help members cover these kinds of activities.

Actual coverage changes are as follows.

Liability coverage — two new exclusions

The first liability exclusion is bodily injury, property damage, or personal injury arising out of a member’s ownership, operation, or maintenance of any cannabis business, or the sale of cannabis products. This exclusion does not apply to low-potency edible cannabinoid products sold at municipal liquor stores.

The second liability exclusion is for those cases in which a member may be liable by reason of Minn. Stat. § 342.81 (relating to illegal sales) or any other law governing liability for the illegal sales of any cannabis products, including low potency. Coverage for the illegal sales of low-potency cannabis products will be moved to the Trust’s liquor liability coverage, which is an optional coverage members can purchase.

Property coverage — one new exclusion

The property coverage will exclude cannabis products, except for low-potency edible cannabinoid products.

Liquor liability coverage — expanded coverage

The liquor liability coverage, which is an optional coverage available to members, will include sums a member is legally obligated to pay because of the illegal sale of low-potency edible cannabinoid products at or from a covered premises, as provided by Minn. Stat. § 342.81 or any other law governing liability for illegal sales.

Liability coverage

PFAS exclusion

There will be new, explicit wording to support the longstanding coverage intent of the pollution exclusions, which is that claims related to PFAS (Per and Polyfluoroalkyl Substances) are excluded from the property and liability coverages as pollutants. This change is not intended to further restrict coverage — it’s a supporting clarification the insurance and reinsurance industry are adopting.

Professional medical services exclusion

Coverage will be clarified to better define which medical professionals are excluded from coverage. In addition to doctors of medicine, dentists, nurses, pharmacists, and psychologists, it will clarify this also includes doctors of osteopathic medicine, doctors of optometry, podiatrists, physician assistants, veterinarians, and dental therapists.

Property coverage

Water damage sub-limit for cyber claims

The property coverage has an exclusion for cyber claims caused by unauthorized intrusive codes or programming, such as hacking, ransomware, or a computer virus, but there’s an exception to the exclusion for damages resulting from smoke, explosion, water damage, leakage, or discharge from fire extinguishing equipment. A new sub-limit in the amount of $10 million will apply to property claims caused by a cyber event that results in water damage to members’ property.

PFAS exclusion

There will be new, explicit wording to support the longstanding coverage intent of the pollution exclusions, which is that claims related to PFAS (Per and Polyfluoroalkyl Substances) are excluded from the property and liability coverages as pollutants. This change is not intended to further restrict coverage — it’s a supporting clarification that the insurance and reinsurance industry are adopting.

Planters and ‘property in the open’ definition

Property-in-the-open, which captures types of property not in a building, such as benches, fences, and picnic tables, will be broadened to include planters.

Workers’ compensation coverage

Infectious disease testing limit

The infectious disease diagnostic testing limit will increase from $5,000 to $7,500 per incident. The coverage provides diagnostic testing for certain viral infections, such as human immunodeficiency virus (HIV) and meningitis, and other diagnostic costs that are not otherwise covered by workers’ compensation.

Optional coverages

Excess liability retro date wording

Members have the option to carry higher coverage limits than the basic limits automatically provided by the Trust for municipal liability, land use and special risk litigation, auto liability, and liquor liability. A slight wording change will be made to clarify under what circumstances the excess liability will respond.

Liquor liability

The liquor liability coverage, which is an optional coverage available to members, will include sums a member is legally obligated to pay because of the illegal sale of low-potency edible cannabinoid products at or from a covered premises, as provided by Minn. Stat. § 342.81 or any other law governing liability for illegal sales.