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Town Closing Down Because of Lack of Insurance

December 12, 1985

BLUE LAKE, Calif. (AP) _ Officials in this northern California city of 1,200 people have decided to close buildings and parks, cancel meetings and park non-essential cars temporarily rather than operate without insurance.

City Council members decided Tuesday night it would be better to shut down temporarily rather than take the risk of facing a possible lawsuit without liability insurance, which expires Dec. 26.

On that day, city buildings, a skating rink and parks will be closed. All city meetings except those by the council have been canceled.

In addition, all city vehicles except those needed for essential services will be parked.

Blue Lake’s vehicle liability coverage and fire and theft insurance will resume after Jan. 1, but city officials say they don’t know when, or if, the city will get general liability insurance. So far, they haven’t found any company willing to take the policy.

City Attorney Rick Platz said the council will have three options if no liability insurance can be found: disband the city, operate without coverage or keep things closed to reduce the risk until insurance can be found.