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Mayor Hanson and Members of the City Council <br />March 22, 1991 <br />Page 2 <br />associated with the City, the greater the exposure <br />becomes. The factors he was discussing included <br />the event being held on City property, the <br />organization being closely tied to the City, and <br />the existence of resolutions designating the <br />nature of the relationship between the City and <br />the organization. <br />Mr. Drugg also stated that the majority of the <br />cities he is aware of require liquor liability for <br />a temporary events coverage. He recommended the <br />limits be close to those utilized by the City. <br />That would be $600,000. <br />* According to Mr. Peter Tritz with the LMCIT <br />program, he stated that should a liquor liability <br />claim result from a licensed activity, it is safe <br />to assume the City will be sued. He recommended <br />that the City be named as an additional insured on <br />all liquor liability policies. <br />* Mr. Tritz also stated that he was not aware of any <br />specific claim relating to temporary events for <br />liquor liability. However, in review of a LMCIT <br />tape on risk management, there was a claim <br />mentioned where a community event was held on city <br />property and a person tripped and fell and sued <br />the event and the city. Because the city had a <br />certificate of insurance from the sponsors of the <br />event naming the city as an additional insured, <br />coverage (including defense) was provided by the <br />event's sponsor's insurance carrier. <br />* From our own research, it appears that the <br />majority of cities do require liquor liability <br />insurance. The one case we found that does not <br />require insurance is still receiving a certificate <br />of insurance for liquor liability exposure. (see <br />survey attached) <br />* The exemption for liquor liability insurance <br />provided for in Minnesota Statutes 340A.409 Subd. <br />4 may not apply to holders of temporary <br />intoxicating liquor licenses. The exemption <br />appears to reference only non - intoxicating malt <br />liquor licenses and wine licenses. If that is the <br />case, then insurance would still be required in <br />all cases for the issuance of a liquor license; <br />even on a temporary basis. The City Attorney is <br />PAGE 76B <br />