Item 12 - Special Events Insurance
l
- AGENDA REPORT
CITY OF POW A Y
This report is included on the Consent Calendar. There will be no separate discussion of the report prior to approval by the
City Council unless members of the Council, staff or public request it to be removed from the Consent Calendar and
discussed s.eparately. If you wish to have this report pulled for discussion, please fill out a slip indicating the report number
and give it to the City Clerk prior to the beginning of the City Council rryeeting.
TO:
Honorable Mayor and Members of the City Council
James L. Bowersox, City Man~
Peggy stewart, Dir. of Administrative Servi~~
Robert Thomas, Dir. of Community services '-N'r
Douglas Milton, General services Manage~-
March 2, 1992
FROM:
INITIATED BY:
DATE:
SUBJECT:
Soecial Events Insurance (SEIl
ABSTRACT:
When the city of poway permits the use of City facilities for
special events by outside groups and organizations, the City is
exposed to liability for claims arising from those events, unless
the city has effectively transferred risk through confirmation of
adequate liability insurance (at least $1,000,000) by the user.
General liability insurance coverage will transfer any risk
associated with the event to the user. Special Event Liability
insurance in an amount of $1,000,000 is available through the city
and enables groups reserving City facilities who have little or no
insurance to be protected along with the city at a very reasonable
premium to the user. (See Exh. A) This program is administered by
the Robert F. Driver Company and is sanctioned by the Southern
California Joint Powers Insurance Authority.
BACKGROUND:
In the past, insurance was not required of most groups using City
facilities. In the event of an injury the City was vulnerable to
claims and lawsuits. Although waivers and hold harmless agreements
were signed by the users, this is not considered sufficient
protection for.the city. Therefore the City has obtained coverage
for those groups at a reasonable cost through a Special Event
Liability Insurance Program. The cost of the policy available to
users of City facilities is determined as follows:
ACTION:
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1) Determine the risk classification of the event.
2) Determine the number of people taking part in the event.
3) Determine how many days the event will be held.
Listed below are the conditions to be met for a group to be exempt
from the City insurance requirements:
a. Normal Family Use
b. Groups of any size participating in a sedentary event such
as meetings needlepoint classes and seminars.
Listed below are conditions under which a group is required to
provide insurance:
a. Any group of fifty or more persons involved in other than a
sedentary activity.
b. An event of any size at which alcoholic beverages are sold.
c. Any event that by its very nature is a risk to the City.
Example: A family wishes to use the Community Park Auditorium for
a wedding reception. The attendance will be between 60 and 100
people and no alcohol will be served.
The reception is a Class I event (see Exh. B) with no more than 100
people in attendance. (see Exh. A)
The cost for this coverage is:
Premium
Processing
$35.00
10.00
45.00
Exhibit "A" shows the amount of coverage that is provided for
$45.00. If alcohol was to be used at this event an additional
charge of $50.00 would be levied. It is also a requirement that
all events that sell, use or serve alcoholic beverages be
insured.
MAR 2 1993 ITEM 12
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PUBLIC CORRESPONDENCE AND NOTIFICATION:
Park and Recreation Commitee
FISCAL IMPACT:
Program is funded by user premiums.
FINDINGS:
By transferring risk to the users of reserved City facilities,
the city is protected from possible claims and lawsuits for
damages directly connected to the event. Since the cost of a
million dollars worth of liability insurance from the usual
sources would be prohibitive for many groups and organiza-
tions, the SEI program effectively accomplishes the transfer of
risk at a reasonable cost to the user.
RECOMMENDATION:
It is recommended that the City Council approve the SEI program
as written.
JLB:PS:RT:DM:dm
attachments
MAR 2 1993 rrEM 12
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SPECIAL EVENT LIABILITY INSURANCE
PROCEDURE MANUAL
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MAR 2 1993 .T::;:~ 12
SPECIAL EVENT LIABILITY INSURANCE PROGRAM
This program is administered by the Robert F. Driver Company and
operates under the auspices of the Southern California Joint
Powers Insurance Authority.
This tenant/user Special Event Liability Insurance Program
provides protection for both the City and sponsor ,of an event
using a City owned facility. It insures the user for the
consequences of a negligent act and also protects the City if the
city is named on a claim. The program also has the following
advantages:
(1) The user is relieved of the need and difficulties of finding
acceptable insurance and of providing a certificate of
Insurance.
(2) It eliminates the need for the city to require a Certificate
of Insurance from the user and the "last minute dash" by the
user to find certificates in order to book a city owned
facility.
(3) It gives the City direct knowledge of and involvement with
the insurance, its terms, conditions, limitations and the
financial stability of the insurer, without depending upon
the user to find acceptable insurance.
(4) It serves as a promotional/sales tool for the City to
attract more users and increasing revenues to the City by
having insurance readily available at reasonable rates.
Keep in mind that the main object of special event liability
insurance is to transfer the risk of injury to persons using city
facilities on a short term basis.
Other than a small amount of time, there is no cost to the city
for this program, as each user pays the premium to the City
before the event. At the end of each month the City sends monies
received for premiums to the Robert F. Driver Company.
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MAR 2 1993 ITEM 12
SPECIAL EVENT LIABILITY
PROGRAM OUTLINE
INSURANCE COMPANY:
American Casualty Company
BEST'S GUIDE RATING:
A+, Superior; Class XV, Policyholders'
Surplus of $2,000,000,000 or more
CALIFORNIA STATUS:
Admitted
LIMITS:
$1,000,000 General Aggregate Limit*
$1,000,000 Products/Completed Operations
Aggregate Limit
$1,000,000 Personal Advertising Injury
$1,000,000 Each Occurance Limit
$ 50,000 Fire Damage Legal Limit
$ 5,000 Medical Expense Limit, except
on Athletic Participants
*General Aggregate applies separately to
each event
COVERAGE:
Combined single of Liability for Bodily
Injury and Property Damage per Occurrence
and Annual Aggregate as shown above.
Coverage includes:
-Lessees as Named Insured
-City as Additional Insured
-Premises & Products/Completed operations
-Personal & Advertising Injury
-Liquor Legal Liability
-Fire Damage Legal Liability
-Athletic Participants
-Medical Expense, except on Athletic
Participants
Tenent/User Liability Insurance while
activities.
using City owned or operated facilities
for special events or short term
activities.
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EXIllBIT "A"
MAR 2 1993 ITEM 12
TO IMPLEMENT COVERAGE
1. Secure appropriate details of the event from the lessee which
will allow you to...
2. Classify the event in accordance with the schedule of Hazard/
Classifications and...
3. Based upon number of days of the event, attendance, and event
classification, calculate the event premium using the rate
schedule, including the processing fee.
4. Collect the premium from the lessee. Checks must be made
payable to the city and deposited appropriately.
5. Issue a certificate of Insurance to the lessee as evidence of
coverage, keeping one copy for your records and one copy for
the monthly report.
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EXIllBIT "A"
MAR 2 1993 ITEM 12
LESSEE'S RATING SCHEDULE
Premiums: per day
Processing
Class Attendance Premium Fee
I 1-100. . . . . . . . . . . . . . . . $ 35. $10.
101-500. . . . . . . . . . . . . . . . 50. 10.
501-1,500.............. 95. 10.
1,501-3,000............... 125. 10.
3,001-5,000.............. 195. 10.
5,001-10,000............. 275. 10.
10,001 plus.............. . TBD
II 1-100. . . . . . . . . . . . . . . . $ 70. 10.
101-500. . . . . . . . . . . . . . . . 85. 10.
501-1,500.............. 125. 10.
1,501-3,000.............. 185. 10.
3,001-5,000.............. 285. 10.
5,001-10,000............. 375. 10.
10,001 Plus TBD
III 1-100. . . . . . . . . . . . . . . . $ 105. 10.
101-500. . . . . . . . . . . . . . . . 135. 10.
501-1,500. . . . . . . . . . . . . . 250. 10.
1,501-3,000.............. 340. 10.
3,001-5,000.............. 430. 10.
5,001-10,000............. 575. 10.
10,001 plus.............. . TBD
Additional Charges:
CONCESSIONAIRE RATE ENDORSEMENT
Premium
Exhibitors - No Sales.....................$35.
Concessionaires - Non-Food Sales.......... 65.
concessionaires - Food Sales.............. 60.
Liquor Liability.......................... 50.
AN ADDED CHARGE OF $50.00 IS REOUIRED FOR ALL EVENTS USING OR
SERVING ALCOHOLIC BEVERAGES.
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EXIllBIT "A"
MAR 2 1993 ITEM 12
LESSEE'S RATING SCHEDULE (continued)
Imoortant Information:
Liquor Liability: If liquor, beer or wine is available for
consumption, liquor liability premiums are to charged.
Multiple Day Event: Days used exclusively to set up or take down
are to be reported on the monthly report as "set up" or "take
down" day. Include the "set up" and/or "take down" day as insured
days on the coverage certficate.
Multiple Day Event Rules:
(1) Total the attendance for all days of the event. Refer to
rates and charge the premium corresponding to the total
attendance.
(2) Alcoholic beverage preiums are to be calculated separately
for each day.
EXHIBIT "A"
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MAR 2 1993 ITEM 12
TO COMPLETE CERTIFICATE OF INSURANCE
(1) Include the city of poway as additional insured by typing
name on the certificate of insurance.
(2) If vendors, exhibitors or concessionaires are to be included
as additional insured, attach a separate page listing the
name, mailing address, phone number and contact person of
all vendors, exhibitors and concessionaires at the event.
(3) -Give the original copy of the certificate to the event
holder.
-Send one copy to the Robert F. Driver Company with the mon-
thly report and a check for the full premium amount.
-Keep one copy with the application.
-Keep one copy with the monthly report form.
(4) If an event is cancelled request the original certificate
from the event holder and mail it to the Robert F. Driver
company with the monthly report. Indicate on the certificate
and Monthly Report that the event was cancelled.
EXIllBIT "A"
MAR 2 1993 ITEM 12
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TO REPORT EVENTS AND TO REMIT PREMIUMS
1. Forward to Robert F. Driver at month end, the Tenant Users
Monthly Reporting Form showing the events insured and their
premiums.
2. Attach to the report, a copy of certificates of Insurance
which have been issued to the lessees.
3. Include payment to Robert F. Driver in an amount equal to the
total premiums for the month being reported.
4. Report with premium must be received by the 15th of the
month.
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EXIllBIT "A"
MAR 2 1993 ITEM 12
AON ENTERTA/l JENT, LTD.
INSURANCE SERVICES
$0"'" 1.5..
CERTIFICATE OF INSURANCE
SPECIAL EVENT LIABILITY PROGRAM
PRODUCER: PUBLIC ENTITY (ADDITIONAL INSURED):
Members of So. Calif. Joint Powers
ROBERT F. DRIVER Insurance Authority/City of poway
3636 BIRCH STREET P.o. Box 789
NEWPORT BEACH. CA 9266~ poway, Ca. 92074
(714) 756-0271
NAMED INSURED (EVENT HOLDER): EVENT INFORMATION:
TYPE:
DATE(S):
LOCATION:
This is 10 certify that the policies of insurance listed below have been issued 10 the insured -named above lor the policy
period indicated, Nothwithstanding any reQuiremenls, term or condition 01 any conlracl or other documenl with respecl-Io
which this certificate may be issued or may pertain, Ihe insurance afforded by the policies described herein is subject 10
all the terms. exclusions and conditions 01 such policies.
INSURANCE CARRIER: AMERICAN CASUALTY COMPANY OF READING. PA
MASTER POLICY NUMBER: G S00547599
MASTER POLICY OATES: EFFECTIVE: 04101/91 EXPIRATION: 04101/92
COMMERCIAL GENERAL LIASILITY
General Aggregate Limit $ 1,000,000 Occurrence Form
Products & Compleled Operations $ 1,000,000
Personal & Advertising Injury S 1.000,000
Each Occurrence Limit $ 1.000,000
Fire Damage (Any One Fire) S 50.000
Medical Payments (Any One Person) $ 5,000
$
Coverage is ptimary and not contributing 'lirith any insurance maintained by an additional insured. The limits of insurance
apply separately 10 each event insured by this pohcy as il a separale policy 01 insurance has been issued lor Ihat evenl,
-'Nho is insured- is amended to include. as an insured. the person Of organizalion shown in this schedule. t>ut.only with
respecllO liabditlY arising out of the ownership. maintenance or y$8 Or the premises used by U"',e named insured (event
holder), This insurance does not apply to: Any .occurrence. which lakes place after the event holder ceases to be a
tenant in that premises.
OTHER ADDITIONAL INSUREDS
CANCEL LA nON: ShOuld the above desc,i~ed policy be cancelled before the expiration dale thereof, the issuing
company "oil maol 30 days '...'inen notice to the cM,ficate holder and additional insureds listed.
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AUTHORIZED REPRESENTATIVE:
DATE ISSUED:
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EXHIBIT A
MAR 2 1993
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EXH1 BIT A
.
SCHEDULE OF HAZARDS
CLASS I
CLASS II
CLASS III -
LOW/MINMUM RISK
MEDIUM/AVE. RISK
MODERATE/HIGH RISK
CLASS I
'Concerts - indoors (under 1500)
Dance Shows - (Professional)
Legitimate Theatre - Professional)
Scouting Jamborees (Camping Included)
CLASS II
Food Concessions
Horse Shows
Marathons (Walking, Running)
Parades (Other Than City Sponsored - under 500)
Competitions (Gymnastics, swimming)
CLASS III
Rodeos
Firework exhibitions
Parades (other Than City Sponsored - Over 500)
Sports Leagues (Baseball, Basketball, Football, Soccer)
Bicycle Rallies
Carnivals
Concerts (Under 5000)
Competitions (Karate, Gymnastics)
Any Event with Alcohol Involved
EXlllBIT "B"
MAR 2 1993 ITEM 12
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