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Council approves insurance-related contract renewals after state raises municipal tort limits
Summary
After the Oklahoma Legislature raised municipal tort liability limits from $1 million to $2 million, staff described how the city layered additional insurance coverage; council approved related contract items on the consent agenda.
City staff informed the Midwest City Council on June 24 that the Oklahoma Legislature increased municipal governmental tort-claim liability limits effective November 1, changing the city’s exposure from $1,000,000 to $2,000,000. The council approved related consent-agenda items so the city’s insurance program and contracts reflect the new statutory exposure.
City staff explained that the city self-insures up to a $250,000 retention per claim and purchases layered insurance above that retention. Under the new tort threshold the city has adjusted layers of coverage: a layer to $2,000,000 (previous tort limit), then additional layers up to $5,000,000 with a state insurer. The staff explained the approach is meant to avoid passing large claim costs to taxpayers through property-tax levies if claims exceed the tort limit.
Council members thanked staff for their work and approved the consent-agenda items that implement the updated coverage and contract renewals. The consent vote covered multiple renewal and purchase items (items 4, 5, 6 and 7 on the agenda) and was recorded as carried.
