Risk Management Advisories
RISK TRANSFER
Rental of School Facilities and/Permits
School boards, universities, colleges and municipalities are public institutions
that encourage community groups to use their facilities. It is recognized that
there is an increased risk associated with allowing others to use facilities,
both in terms of damage to property, and potential liability for injury to participants
or spectators. An important risk management strategy is to ensure that users
of your premises have adequate liability insurance for their activities, and
that they take responsibility for damage to your buildings or equipment.
PERMITS
One of the most accepted methods of transferring risk is through the use of
clearly worded permits for use of facilities. School boards should have one
form for this purpose, and it should be used for all applicants for use of premises
- even when the board is allowing the use, free of charge.
A proper permit will include clearly worded requirements that outline the responsibilities
of the users for use of the premises. There should be indemnity and insurance
clauses which make the user responsible for providing insurance for their activities
and makes the user take responsibility for damages to the premises. Proof of
insurance should accompany the permit. The board should ask to be named as an
additional insured on the insurance of the user.
INSURANCE FOR USER GROUPS
It is recognized that many of the small groups that use school facilities do
not carry liability insurance. It should also be recognized that these groups
and their organizers are vulnerable to law suits for injuries that arise out
of their activities, and that the user groups are not covered under the school
board's liability insurance. It is, therefore, in the best interests of user
groups, as well as for the school board, that these groups have insurance for
their activities.
OSBIE is pleased to offer a new Facility User Group
Program specifically designed for members of the Ontario School Boards’ Insurance
Exchange. We know how important affordable use of schools is to your community and
have worked to develop an affordable, simple plan. This plan is ideal for
organizations or groups using school facilities on
a regular basis over a period of time or for one-time events. For more information
on this exciting new product, please contact Traci
Decaro by email or phone at 1-800-668-6724.
Another source for single event liability insurance protection for groups or
individuals is through Party Alcohol Liability insurance (PAL). PAL provides
coverage for single/multi-day events with or without alcohol involved. This
plan is ideal for events such as fundraisers that are being held outside of
the jurisdiction of the school, or weddings, receptions, etc. Contact PAL at: 1-800-265-8095.
The requirement for insurance for user groups is an accepted risk management
strategy that is practiced by most large organizations. OSBIE issues over 2,000
certificates a year for school boards that are required to provide insurance
for school boards' use of the premises of others, such as malls, municipalities,
parks, etc.
LIQUOR LIABILITY
Boards that are asked to rent their facilities for events that include alcohol
are faced with additional risks. In addition to asking for liability insurance,
the board should be assured that the user group has liquor liability insurance
to protect against alcohol risks.
There have been several cases where the owners of premises were held responsible
for injuries that occurred to people who left their premises intoxicated.
The solution, is to ensure that the group is properly insured and will operate
its function in a reasonable manner. Boards that have their user group coverage with
OSBIE have Host Liquor Liability included in the package. The Party Alcohol Liability Insurance (PAL)
is another source of coverage for these events.
The OSBIE Liability Policy contains liquor liability protection for school
boards that are running their own events, that include the dispensing of alcohol.
However, many boards have elected to purchase the PAL coverage for their own
functions, as another way of transferring risks.
Insurance is not a substitute for good risk management:
School boards that run their own events where alcohol is served should ensure
that mature, responsible, and qualified people are bartending. All bar tending and serving staff/volunteers should complete a "Smart Serve" or comparable program to help reduce the chance of over-serving patrons. The "designated driver"
concept, should be promoted. Other ideas or promotional material might be obtained
from the liquor licensing board, local police and the "RIDE" program.
TRANSPORTATION CONTRACTS
It is recommended that transportation contracts with bus companies, and others,
include an indemnity hold harmless clause to indemnify the school board for
any claims brought against them arising out of the operation of the vehicle.
In addition, there should be a requirement for
the contracting company to carry comprehensive general liability insurance (CGL)
for claims that arise from injuries sustained, unrelated to the operation of
the vehicle. For instance, dropping a child off at the wrong bus stop would
be an example of a claim that would fall under a CGL insurance policy, and not
the automobile liability coverage. There should be a requirement for the board
to be named as an additional insured on the CGL Policy of the contractor.
Automobile Liability Provincial Requirements
The Highway Transport Act and the Public Vehicles Act set out the limits vehicle
owners should
carry in Regulation 982 of the Public Vehicles Act.
a. SCHOOL BUSES
The Third Party Liability insurance limits for school buses are as follows:
SEATING LIABILITY LIMITS
1 to 7 $1,000,000
8 to 12 $5,000,000
13 plus $8,000,000
School Boards that insure their own bus fleets with OSBIE can be confident
that their limits are well in excess of the provincial minimums outlined above.
School Boards that have contracts with independent operators should ensure that
these operators are carrying at least the minimum limits.
b. TEACHERS AND VOLUNTEERS
We suggest that school boards recommend $1,000,000 liability limits be carried
by teachers and volunteer drivers.
$200,000 is the minimum required by law.
c. TAXIS
Taxis should carry the minimum limits, outlined above, based on seating capacity.
(REVISED 2010) E&OE
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