• The City of Lansing has opted in for all five MMFLA license types
  • Lansing has some of the strictest insurance guidelines in the state
  • Along with these guidelines, applicants must have a surety bond and a minimum of $100,00 in product liability insurance

The City of Lansing has opted in to allow all five MMFLA license types and is enforcing strict guidelines applicants must follow in order to receive a license from the city to operate. All applicants are required to provide with their application proof of insurance policy and proof of surety bond or escrow account. While most municipalities require the similar items, the City of Lansing has added additional stipulations as they pertain to the insurance and surety bond requirements.

An applicant will be required to provide the following proof of insurance and surety bond prior to obtaining a permit:

  • Minimum of $1,000,000 in bodily injury to one person and $2,000,000 in bodily injury to two or more people resulting from the same occurrence
  • The insurance policy underwriter must have a minimum A.M. Best company insurance ranking of B+
  • The City, its elected and appointed officials, employees and agents must be listed as additional insured parties providing the city with 30 days in advance of any cancellation.
  • $50,000 surety bond with the City listed as the Obligee (an alternative to this is to open an escrow account for the benefit of the city in the amount of $20,000 at a city approved financial institution, benefiting the city to guarantee performance by the licensee in a form prescribed by the city attorney)

Other important insurance related requirements include:

  • No binding arbitration clause listed in policy
  • Insurer must be an admitted carrier in the State of Michigan. From the correspondence received from the City of Lansing, it indicates they are not accepting non-admitted or surplus lines insurers.
  • The 30-day notice of termination provision in the policy must mention the City of Lansing as additional insured.
  • The insurance policy must indicate that the City of Lansing is not jointly and severally liable for premium payments.

In addition to the requirements set forth above, applicants must show proof of a surety bond naming the city of Lansing as obligee. In order to obtain the surety bond, you must be able to show proof of liquid assets two times the amount of the bond ($100,000 for Lansing). Liquid assets do not include assets such as real estate or retirement accounts.

In addition to the insurance coverages required by the City of Lansing, all applicants must also carry a minimum of $100,000 in product liability insurance to satisfy the State’s financial requirements.

Bricks + Mortar Group is able to obtain both insurance and surety bond products that meet the requirements set forth by both the city of Lansing and the State of Michigan. Online applications for both products can be found here.