2.4. ERMUSR 05-10-2016 - Laserfiche WebLink

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3. Coverage limits If a private group doesn't have coverage and a claim occurred,the city's liability coverage will apply to the city's activities in connection with that event unless that particular activity is excluded(e.g., motor vehicle races, rodeos, and fireworks displays). The reason cities may want to consider requiring private groups to purchase private insurance is to assure the city will be protected from claims arising from an event held on city property. When private insurance is purchased,the private group is named as the primary insured and the city is the additional insured. For example, if a claim were filed for property damage during the private group's event, the claim would be submitted to the private insurance company,not to LMCIT. The claim would therefore not affect the city's loss experience rating,premium rates, dividend amounts, etc. It is common for cities to require one set amount of insurance coverage for all See Section III.K,Liquor parties, such as $1 million. LMCIT recommends a minimum of$500,000 for liability. liquor liability, but$1 million is even better. The city can vary the amount required depending upon the type of organization, event, or the criteria established by the city. For example,the city may determine that insurance is not required for a meeting with ten people because there is a probable chance there won't be much risk involved. The city may though require insurance for a wedding reception with alcohol and 100 people. Private individuals holding Private groups may be personally responsible for paying claims for bodily a special event on city property can obtain general injury or property damage during their event or activity. Private groups have liability and/or liquor the option of purchasing insurance through their homeowner's insurance liability coverage through the Tenant user Liability (although the policy may be limited and not all claims may be covered), a Insurance Program private insurance carrier, or the Tenant User Liability Insurance Program (TULIP). (TULIP). TULIP helps individuals and groups - called tenant users -protect themselves and their guests at events held at city-owned facilities. LMCIT member cities automatically are eligible to offer TULIP to tenant users, at no cost to the city. TULIP provides private individuals and groups with access to low-cost liability coverage, including liquor liability coverage, of$1 million for special events held at city facilities. The coverage automatically lists the city as an additional insured. 110