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Minn.Stat.§466.15. The limits noted above are the minimum limits the city must have,but they <br /> are not the limits on how much the city can be sued for or held liability for. If <br /> the city's liability on a liquor liability claim exceeds its coverage, the city is <br /> still on the hook for the excess. Ultimately, it will come from the city's <br /> general fund or from the city's taxpayers. <br /> This is an important difference between a municipal liquor store and a private <br /> liquor vendor. If a private liquor seller is found liable for damages that exceed <br /> his or her insurance and assets, the seller can declare bankruptcy and that's <br /> pretty much the end of the matter. The injured party simply doesn't recover <br /> the excess damages. <br /> A private liquor licensee might decide the reasonable thing to do is to <br /> incorporate the business, keep minimal assets in the corporation, and <br /> minimize premium costs by buying minimum insurance limits. The private <br /> licensee would simply hand over the keys and walk away if liability should <br /> exceed the insurance. Effectively, it's the injured party that bears the risk that <br /> the private licensee's insurance limits aren't enough. <br /> The city doesn't have that option. The taxpayers bear the risk if the city's <br /> liquor liability coverage limits aren't enough to cover its liability. Thus, a <br /> coverage limit that might seem a reasonable business decision for a private <br /> licensee may be very inadequate for a city with a municipal liquor store. <br /> 2. Coverage for other groups' or individuals' liquor <br /> liability <br /> The city should consider a number of coverage-related issues in those cases <br /> See Section IILT,Special <br /> events. when beer and liquor sales take place at a special event where the city does <br /> not sponsor it but the event is held on city property, and also when the city <br /> contracts with an alcohol vendor. <br /> a. Require liquor liability coverage for special events not <br /> sponsored by the city <br /> Minn.Stat.§340A.409. Even though Minnesota statutes state that the liquor liability insurance <br /> See Section VIII of the requirements do not apply to licensees who establish by affidavit any one of <br /> LMC information memo, the following, cities should still strongly consider requiring the vendor or <br /> Park and Recreation Loss <br /> Control Guide,for more individual to obtain coverage. <br /> specific loss control <br /> recommendations for <br /> special events. <br /> 86 <br />