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River <br /> <br />MEMORANDUM <br /> <br />Item # 3.3. <br /> <br />TO: <br /> <br />Mayor and City Council <br /> <br />FROM: <br /> <br />Lori Johnson, Finance Director <br /> <br />DATE: <br /> <br />February 18, 2003 <br /> <br />SUBJECT: Liquor Store Insurance Policy <br /> <br />Safeco Insurance Company has notified the city that Safeco will not renew the city's liquor <br />liability and liquor store property policy that expires on March 31. Last year during renewal <br />Safeco stated concerns about the liability portion of the policy thinking Safeco may be <br />responsible for city claims unrelated to the liquor store. Although, xve do not believe that to <br />be the case, Safeco has decided not to renew the policy. <br /> <br />As you may recall, in anticipation of this policy being cancelled, ~vhen the city's insurance <br />renewal with the League of Minnesota Cities Insurance Trust (LMCIT) was discussed last <br />July, a quote was presented for hquor building and liability coverage. The premium ~vith <br />Safeco last year was $5,342, and the quote from LMCIT is $11,975 or $6,633 more than <br />Safeco's premium. Our agent Mary Eberley of First National Insurance Agency and I have <br />discussed this issue and the options available to the city. Currently, there is only one other <br />company writing liquor liability and the limits are not high enough to cover all of the city's <br />exposure. The city has previously had liquor liability coverage with the LMCIT and at this <br />point it is our only viable option. Also, there are benefits to having all of the city's property <br />and liability coverage provided by one insurance provider. Therefore, staff recommends that <br />the liquor liability and property coverage be bound with the LMCIT effective April 1, 2003. <br /> <br />Action Requested <br />The City Council is asked to authorize liquor liability and property insurance coverage ~vith <br />the League of Minnesota Cities Insurance Trust effective April 1, 2003. <br /> <br />S:~CO UN CILMJori~liquorliab.doc <br /> <br /> <br />