Turmoil in Minnesota City Leads to Higher Insurance Deducts

LAKE ELMO, Minn. (AP) — Insurers say they've significantly raised the deductible on insuring Lake Elmo because the city is being managed in a way that creates too much of a risk of lawsuits.

The Insurance Trust Board of the League of Minnesota Cities has raised the deductible from $500 to $200,000 per insurance claim. The St. Paul Pioneer Press says the board decided the city is at risk for increased insurance claims because of the way its City Council members treat employees, other government units and each other.

The new deductible applies to personnel-related claims, not property damage or physical injury. Trust assistant administrator Dan Greensweig says the City Council is in a continuing state of conflict.

Eight city hall workers have left since March 2015. And, the city's administrator is the sixth one hired in seven years.