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HomeMy WebLinkAboutMMIA - Special Events CoverageMMIA Montana Municipal Insurance Authority PO Box 6669 Helena, MT 59604-6669 Please distribute to all appropriate personnel and post in a conspicuous place. To: Date: From: Re: MMIA Members March 2'1, 2007 Alan W. Hulse, Chief Operations Officer Special Events CoVerage With Spdng and Summer approaching, it is time to start thinking about RM Bulletin ~-08 MAR 2 5 2008 t hose (~l~s0~'h ~ ,FeLuse y( Jr property for events. For years the MMIA has been talking to members about transferring risk for special events held on municipal property by requiring event holders to obtain and show proof of insurance prior to holding the event. Our message has been very consistent through the years. If it is an event that is outside the normal use of the facility, if you have no control over possible outcomes, if people want exclusive use for a period of time, or if there are hazardous and/or uncovered activities taking place you should: 1 .) enter into an agreement, 2.) require adequate insurance, 3.) make sure the insurance is in place before the event and 4.) require to be named on the policy as an additional insured. One other issue that we have consistently communicated to our members when asked "how much insurance should we require" is that your exposure under Montana's Tort Limits is $750,000 per person and $1,500,000 per occurrence, and that is always a good starting place when deciding on limits to require. As many of you already know, the MMIA in partnership with the Independent Insurance Agents of Montana (IIAMT) and Alliant Risk Services is sponsoring a very affordable and easy-to-use Special Events Insurance Coverage Program. Here is a quick overview on how the Program works. If a group or entity approaches you to request holding an event on municipal property, we believe you should always look to transfer the risk to that group or entity by requiring them to assume the risk in either a permit or agreement and also requiring them to insure the event. If they need to purchase insurance to hold the event, you can access a list of agents who are eligible to sell this Special Events program by going to the MMIA website. Under the liability tab you will find a heading for special events where you will see a link titled "Find an Agent". When you open this link, you will be able to enter your city, or a nearby city, and a list of agents who are eligible to sell this insurance in your area ~vill appear. Provide the event holder with this list and they can choose an agent to contact. The agent will work with the event holder to set up the coverage. The program is still very new and there are many independent agents across the state. The IIAM.'I' is still educating their members on this program. If you or a citizen of your community has contacted an agent that is not aware of the program, or has quoted a price that seems excessively high, please contact us. We will work through the IIAMT to get the agent up to speed on the program and get the requested coverage in place. As an example only, a wedding in a city park with 100 guests and no alcohol would cost approximately $100. Different events will have many variables that will affect the cost; each event must be treated separately and quoted as such. One issue that has been raised by some who have looked at this program is that the Special Events Policy provides limits of $1,000,000 per occurrence with a $2,000,000 aggregate limit. With the tort limit for governmental entitles in Montana being $1,500,000, this creates a potential "gap" in coverage, This also creates some political issues for some members who have adopted by ordinance or rule the $1,500,000 as This newsletter is published as a service to our members. The articles are not a substitute for the Memorandum of Liability Coverage or other coverage documents. All coverage determinations are made on a case-by-case basis, and can only be viewed on the unique facts of the claim presented. a minimum limit for insurance. Let me start by stating that we at the MMIA fully recognize and appreciate this issue. In fact when we were in the process of putting this program together, we approached the carrier to ask about the possibility of purchasing higher limits. Unfortunately; the answer was a resounding "no". This is a privately insured program offered by a private cerder through local agents. As such, the MMIA is simply sponsoring this program and is limited in what we can do in the way of structuring the program. We were faced with the choice of offering what the carrier was providing, or offering nothing at all. We know from experience and discussions with members that there are many events taking place each year on municipal property that are not being insured due to access to coverage or cost of coverage. Even though this program provides only $1,000,000 in coverage for events, $1,000,000 worth of coverage is much better than no coverage at all. For most of the events that this coverage applies to, these limits might be adequate. However, your community should still be diligent in reviewing proposed events and have enough flexibility in your limit requirements for riskier activities. Keel~4mmi¢~ thct t~i.~ pregr..~m is +~ot a eae si,ze fits~d~, and th ere ~, re i:~er~ty-ef ~vi~A:s or~evec, t~that~may be proposed that this program would not cover. This program really contemplates coverage for short term, Iow to moderate risk events. Long term or ongoing activities, such as sports leagues, do not fit this program. High risk activities such as fireworks displays are not covered by this policy. The key for you as a municipal entity is to view each proposed event individually, weighing the activities involved, the exposure to risk and have the flexibility to require the level of insurance that is appropriate for the event. This program is simply a tool that you can use to achieve risk transfer for many events that will be proposed in your community. If you have questions or would like to further discuss this program, please do not hesitate to give me a call at 1-800-635-3089, or e-mail me at ahulse@mmia.net. 2 Special Events Liability Coverage The :MMIA and: the Independent InSurance Agents of Montana have worked together to,provide access to SpeCial :Events Liability Coverage for events held :on _m~JniCipa[ Property: in:' Montana:that are spO:nsored bY a Pr/va:re individual or organization, This program offers easy and affordable, short- term coverage for a wide variety of events, some of which are: Art Festivals Auctions Block Parties/Street Closures Craft Shows Food Concessions Harvest Festivals Garden Shows Livestock Shows Outdoor Exhibitions Parades Reunions Social Gatherings Sidewalk Sales Various Sporting Events Weddings & Receptions Here's how it works: · City/Town receives a request to use public property and provides the applicant the city's permit/agreement requirements. · Refer the event holder to a list of local agents. Go to www.mmia.net, click on Liability and then Special Events. · The event holder contacts an agent, completes an application and pays-the premium. The holder must allow a minimum of 5 business days prior to the event for coverage to be offered. · When the event is covered, a certificate of insurance with a $1,000,000 limit will be issued naming the municipality as an additional insured. It's that easy/ For questions, contact the MMIA at 1-800-635-3089.