New Insurance Legislation Places Added Requirements on Municipalities

Municipalities be advised: municipalities as additional named insured is not enough anymore under Michigan law when contracting out for services.

Earlier this year the Michigan Legislature passed Senate Bill 715, which changes the insurance law for municipalities in the state and places additional requirements on cities and townships.

The law now requires municipalities to obtain from insurance companies the actual policy documentation containing the endorsement of a municipality as an additional insured. Previously, local governments looking to contract out work – for example, replacing the roof on a City building – could simply call and ask to be added as an insured party without reviewing or obtaining the actual policy.

The law does not expand coverage for local governments, but simply places the added requirement of furnishing the actual insurance policy.

Fausone Bohn has a team of experienced municipal attorneys. The firm has represented and worked with several cities and townships across southeast Michigan, including: Westland, Wayne, Rockwood, and Northville Township.

To consult with one of the firm’s attorneys, call (248) 380-0000, or visit our website
www.fb-firm.com.