EAGLE RIVER — After the Michigan Department of Natural Resources (DNR) recently quashed a land purchase agreement between Keweenaw County and Keweenaw Resort LLC for property containing a number of bicycle trails, Keweenaw County’s municipal insurance representative informed the Copper Harbor Trails Club that they must either increase their the general liability limit from $1 to $5 million, or keep the high-risk sections of their bike trails closed.

Hannula addressed the long-time liability concern at the board’s regular July meeting last Wednesday when he told the trails club officers present that they had contacted his company at some point in the past about bike trail features built on county property.

Upon visiting the trails and the features, the questions immediately rose.

“We looked at it,” said Hannula, “we had Risk Control come out, and said, ‘for the record here, is there a rental agreement, or a lease agreement, that this club has with the county? I mean, how did these features even get out there?”

Hannula cautioned that anytime a hazardous feature creates a liability risk, it will eventually “come back on somebody.” Neither Grant Township nor Keweenaw County officials feel it should be them.

In addition to a $5 million liablity limit, a contract must also include a provision under which if the club builds additional features in the future, they must be first approved by the board.

“I know: You say you can’t get it, or it’s the industry standards,” Hannula said. “It’s available, because we called your company that writes your insurance policy. I mean, as an agent, I’ll do that. I’ll call them and ask them what can they do to help you out.”

Hannula then told the County Board, “but if you put in a contract — you deal a contract with the trails club — tell them that the requirements are a $5 million general liablity limit.”

Hannula added that the insurance provider wanted the limit set at $10 million, but he was trying to find compromises to keep the trails club open, while at the same time, protect the county and the township.

“If you build (features) on county property or township property,” he said, “you really need to get it down in writing what your’e doing.”

Hannula continued, telling the club that “this has been — I don’t want to call it haphazard, but for the past 12 years this has been kind of a question mark with me: ‘What’s going on?'”

Hannula then said as far as his insurance company was concerned, the trails club must either increase their general liability limit from $1 to $5 million, and keep the high-hazard trails closed until they do.

“There needs to be more controls on these trails,” he said, “that you guys know what’s going on out there,” adding that added paperwork and building databases would be a lot more work for trails club workers.

“It’s not free anymore,” he said. “You’re going to have to get out there (and record): Who’s out there? Who got injured? Where’d they get injured? What piece of property they were on. You got to have all these facts and build up your database.”

“So, as far as my insurance is concerned, we want to see a $5 million general liability limit and put that in your contract. And if you put it in your contract, you guys give it to your insurance agent, and he can give you a quote.”