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2.4. ERMUSR 05-10-2016
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2.4. ERMUSR 05-10-2016
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City Government
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If the renewal date of the city's municipal liability coverage is different from <br /> the inception date of the liquor liability coverage, the initial liquor liability <br /> coverage can be issued for a short term to coordinate the renewal dates. <br /> d. Selecting limits <br /> There's no easy or infallible rule for deciding how much coverage is adequate <br /> for a municipal liquor store. No matter what coverage limits the city buys, it's <br /> possible to imagine a situation in which it won't be enough. Ultimately the <br /> city council needs to exercise its own judgment in deciding how much <br /> coverage to carry and pay for. LMCIT recommends that any city with a <br /> municipal liquor store carry limits of at least$500,000,but cities should <br /> strongly consider higher limits of$1 million or more. <br /> While LMCIT can't give the city a definite answer for how much is enough, <br /> cities should note that if it has a municipal liquor store, it must meet the same <br /> statutory financial responsibility requirements as a private liquor licensee. In <br /> Minn.Stat.§340A.603. general,the statute requires liquor sellers to have the following liquor liability <br /> insurance limits. LMCIT's liquor liability coverage meets these requirements. <br /> Minn.Stat.§340A.409. • $50,000 of coverage because of bodily injury to any one person in any one <br /> occurrence; <br /> • $100,000 because of bodily injury to two or more persons in any one <br /> occurrence; <br /> • $10,000 because of injury to or destruction of property of others in any <br /> one occurrence; <br /> • $50,000 for loss of means of support of any one person in any one <br /> occurrence; <br /> • $100,000 for loss of means of support of two or more persons in any one <br /> occurrence; <br /> • $50,000 for other pecuniary loss of any one person in any one occurrence; <br /> and <br /> • $100,000 for other pecuniary loss of two or more persons in any one <br /> occurrence. <br /> If the insurance policy includes an annual aggregate policy limit,that annual <br /> limit must be at least $300,000. The statutes do allow a liquor seller to post a <br /> surety bond with the same limits or to self-insure by depositing at least <br /> $100,000 with the state treasurer,but these options are seldom used. <br /> 85 <br />
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