Laserfiche WebLink
515 Little Canada Road, Little Canada, MN 55117 -1600 <br />(651) 484 -2177 / FAX: (651) 484 -4538 <br />MEMORANDUM <br />TO: Mayor Fahey and Members of the City Council <br />FROM: Kathy Glanzer, Deputy Clerk <br />DATE: March 10, 1999 <br />RE: Old Fire Hall Rental — Insurance Limits <br />MAYOR <br />Michael I. Fahey <br />COUNCIL <br />Beverly Scalze <br />Jim LaValle <br />Steve Morel= <br />Bob Pedersen <br />ADMINISTRATOR <br />Joel R. Hanson <br />As you may recall, the City required that anyone renting the Old Fire Hall must provide <br />host liquor liability insurance coverage if liquor is served as part of the rental. The <br />insurance limits imposed by the City are $300,000 for a single claim and $750,000 for <br />any number of claims arising out of a single occurrence. These limits follow the City's <br />statutory liability. <br />As we have gained some experience in renting the Old Fire Hall, we have learned that <br />most insurance companies can provide limits of $500,000 per occurrence as a rider on a <br />person's homeowners insurance policy. In order to cover the City's statutory limits, an <br />umbrella policy with $1 million limits would have to be purchased since the insurance <br />companies have nothing that covers the City's $300,000 /$750,000 limits. The <br />information that I have had from insurance agents is that most companies will issue the <br />rider at no cost, while an umbrella policy can cost up to $100 or more. <br />Staff has received many requests from people renting the Old Fire Hall for the decreased <br />limits of $500,000 per occurrence. Therefore, I would like the Council's clarification of <br />their position on this issue. <br />We have discussed this matter with the City Attorney, and he is comfortable decreasing <br />our limits. Therefore, City staff recommends a decrease to $500,000 per occurrence. <br />