City staff outlines insurance standards; special-event waivers and blanket coverage remain unresolved

City risk-management staff reviewed contract and event insurance practices at an Aug. 26 work session, telling the council that the city generally requires $3,000,000 in general liability, $1,000,000 in workers' compensation and $1,000,000 in auto liability for third parties that stage events or hold contracts with the city. Lisa [last name not provided], risk-management staff, said the city initially considered a higher $4,000,000 general-liability level on the recommendation of the municipal insurance pool but reverted to $3,000,000 because that amount remains the industry standard and is easier for vendors to obtain.

Lisa said exceptions to the baseline insurance requirements are possible but must go through city review: "any exception that someone in the city wants to make to insurance goes through me," she said, and staff will consult with legal and the project manager before approving lower coverage for particular contracts. Gary [last name not provided], who spoke about statutory limits, said the state statutory cap on government liability is a moving figure that is periodically adjusted for inflation and that the city's recommended and required insurance levels reflect that changing cap.

Special-event organizers were a particular focus of the discussion. Staff acknowledged frequent requests for simplified or single-source insurance for park-based and neighborhood events and said they had explored a city-funded blanket policy but found it unworkable: event insurance rates vary greatly by activity type, length and exposure, and a one-size-fits-all municipal policy did not adequately manage those differences. Staff noted practical constraints: participant waivers do not cover spectators, and activities with animals, bounce houses or impact sports raise substantially higher exposure.

Staff described the city's broader insurance structure. Ogden participates in a municipal insurance pool (IRMA) with about 15'20 other Utah cities; the pool effectively self-insures most claims over multi-year periods, purchases reinsurance for very large losses and brokers specific third-party coverages such as cyber and property insurance. Some exposures, including airport operations and certain real property insurance, are placed outside the pool and purchased through brokers. Staff highlighted the city's regular inspection and prevention program administered with the pool.

Council members pressed staff about practical outcomes for neighborhood groups that want to host low-risk gatherings in parks. Staff said they are writing a revised special-events policy and ordinance language to better define risk tiers and possible low-risk waivers for neighborhood gatherings; they cautioned that no policy eliminates risk entirely and that some activities will continue to require standard coverage. The city also reported it handles more than 300 special events a year and that fireworks events have been flagged by the pool for higher limits (Irma recommended $5,000,000 for fireworks).

No ordinance change was adopted at the work session; staff said they will continue work on the revised special-events policy, a clearer set of low-risk definitions and administrative procedures for waiver requests.