2.4. ERMUSR 05-10-2016 - Laserfiche WebLink

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• They are on-sale 3.2 percent malt liquor licensees with sales of less than $25,000 in the preceding year. • They are off-sale 3.2 percent malt liquor licensees with sales of less than $50,000 in the preceding year. • They are on-sale wine licensees with sales of less than$25,000 in the preceding year. • They are temporary wine licensees. • They are wholesalers who donate to an organization for a wine tasting Minn.Stat.§340A.418 and Mum.Stat.§340A.419. conducted under Minn. Stat. §§ 340A.418 or 340A.419. When thinking about the insurance requirement for liquor or beer sales and whether to require it if an event is held on city property,the city will want to consider: • As a matter of public policy, it is arguably desirable to have coverage available to make sure that an injured party is compensated if an illegal beer or wine sale caused the injury. • It's not just the organization running the beer garden that can be sued. The individuals who actually tend the bar and sell the beer could also be sued as individuals. Private individuals holding In addition to making sure liability coverage is in effect, the city should also a special event on city property can obtain general consider making a couple other coverage provisions. First, make sure the liability and/or liquor liquor liability coverage applies to the city premises location. Most companies liability coverage through the Tenant user Liability require a vendor to notify them if alcohol will be sold somewhere other than Insurance Program its normal place of operation. Second,the city should have general liability (TULIP). coverage itself and require groups that are using city facilities to have general liability coverage. If an organized group does not have liability coverage, there is a greater risk to the city of being the target of a negligence claim or See Section III.T,Special lawsuit. events. b. Transfer risk if the city contracts with an alcohol vendor If the city contracts with an alcohol vendor,the liability should rest with the vendor and therefore the agreement should have a hold harmless and indemnification provision. This provision would ensure the vendor would defend and pay for any claim against the city related to the sale of alcohol by the vendor. If a community group serves the alcohol in a social host setting, cities may require a representative to sign a hold harmless and indemnification provision. In an organized group, such as a nonprofit corporation, a representative can bind the group for the indemnification. If it is not an organized group but a group such as a wedding reception or snowmobile club, a representative cannot bind the individuals in the group to a hold harmless provision if an individual was injured. 87