03-24-1999 Council Agenda - Laserfiche WebLink

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515 Little Canada Road, Little Canada, MN 55117 -1600 (651) 484 -2177 / FAX: (651) 484 -4538 MEMORANDUM TO: Mayor Fahey and Members of the City Council FROM: Kathy Glanzer, Deputy Clerk DATE: March 10, 1999 RE: Old Fire Hall Rental — Insurance Limits MAYOR Michael I. Fahey COUNCIL Beverly Scalze Jim LaValle Steve Morelan Bob Pedersen ADMINISTRATOR Joel R Hanson As you may recall, the City required that anyone renting the Old Fire Hall must provide host liquor liability insurance coverage if liquor is served as part of the rental. The insurance limits imposed by the City are $300,000 for a single claim and $750,000 for any number of claims arising out of a single occurrence. These limits follow the City's statutory liability. As we have gained some experience in renting the Old Fire Hall, we have learned that most insurance companies can provide limits of $500,000 per occurrence as a rider on a person's homeowners insurance policy. In order to cover the City's statutory limits, an umbrella policy with $1 million limits would have to be purchased since the insurance companies have nothing that covers the City's $300,000 /$750,000 limits. The information that I have had from insurance agents is that most companies will issue the rider at no cost, while an umbrella policy can cost up to $100 or more. Staff has received many requests from people renting the Old Fire Hall for the decreased limits of $500,000 per occurrence. Therefore, I would like the Council's clarification of their position on this issue. We have discussed this matter with the City Attorney, and he is comfortable decreasing our limits. Therefore, City staff recommends a decrease to $500,000 per occurrence. FARMERS INSURANCE GROUP $1 MILLION UMBRELLA — COST $100 $500,000 RIDER ON HOMEOWNERS INSURANCE — COST $6.00 Page 120