Presented by Tony Lackey BA,FCIP,RF

Finance Department

Room 603

Robertson Hall

Ext. 1473

tony_lackey@carleton.ca

Risk Management and Insurance

Agenda

1.1. IntroductionIntroduction

2.2. Event Risk ManagementEvent Risk Management

3.3. Liability and ContractsLiability and Contracts

4.4. Alcohol Alcohol

5.5. InsuranceInsurance

6.6. Loss Prevention and Risk ControlLoss Prevention and Risk Control

Brain Teaser

• What is greater than god

• What is worse than hell

• The rich want it

• The poor have it

• And if you ate it you would die

Nothing

Risk Management

• What is Risk

• What is Risk Management

What is Risk

Insurance definition refers to:

“Chance of Loss”

Risk Management definition refers to the:

“ uncertain outcome of an event or activity”

Event Risk Management

• The minimization of uncertainty associated with an event or activity , at a minimum cost.

Steps in Event Risk Management Program

Simply

1. Identify the Risk

2. Measure the Risk

3. Control the Risk

Risk Control

Risk Transfer

Risk Financing

WHAT ARE THE BIGGEST RISK YOUR EVENT WILL FACE?

WHAT ARE THE BIGGEST RISK YOUR EVENT WILL FACE?• Event Not Taking Place – Cancelled

• Participants Not happy

• Participant/ Employee Injured

• Services not provided by vendor

• ???????

Identifying Event Risk• Survey the venue

• Complete Student Event Risk Management Form

http://www.carleton.ca/studentaffairs/alcohol/risk_management.html#

• Nature of activity

• Surrounding environment

• Identify the composition of crowd– Age, Sex, attitude and general mood

• Brainstorming - Worst Case Scenarios and contingencies

• Review University Policies

Liability

• Liability = Responsibility

• Falls upon anyone by virtue of ownership, control or use of something

Liability

• 3 types

1 Tort

2 Contract

3 Statutory or Regulatory

Statutory

• Liability placed on individuals or organization as a result of laws or regulations passed by legislature or administrative body

• Example: Liquor Control Act , Occupational Health and Safety Act, Labour Standards Act,

• Penalties and fines issued by enforcement body

Liquor Liability

• Whose Responsible

• Who has the Liquor License

• Smart Serve & Safer Bars Training

Alcohol- Statutory Liability

• ACGO Regulation

• Occupier's Liability Act

• Alcohol Policy

Insurance

• General Liability Insurance

• Liquor Liability

• Cancellation Insurance

• Proof of Insurance

General Liability Insurance

»Pay on behalf of the Insured all sums the Insured is legally obligated to pay as damages because of

1 Bodily Injury sustained by any person

2 Personal Injury sustained by any person

3 Property Damage caused by an Occurrence

4 Property Damage to Leased Premises

Host Liability

• Host Liquor: Provides protection for businesses against bodily injury or property damage suits brought by parties injured as a result of an intoxicated guest who was served alcohol at an event you hosted. Host liquor liability is a coverage that is included under the commercial general liability policy for those businesses not 'in the business of' serving, manufacturing, distributing, selling, serving or providing alcohol.

• Now being excluded

Liquor Liability

• Provides coverage for bodily injury or property damage for which you may become legally liable as a result of contributing to a person's intoxication. This coverage is provided by a separate policy and will only cover insureds 'in the business of' manufacturing, selling, distributing, serving alcoholic beverages for charge or no charge if a license is required for the activity.

Cancellation Insurance

• is designed to provide coverage from financial loss for any type of cancellation, interruption or postponement of an event beyond the control of the insured.

Inclement weather conditions Non appearance of sponsored personalities at an organized event can also result in financial loss.

• Cost – very expensive

Risk Transfer

Contract

• Is an agreement, enforceable at law between two or more persons whereby each agrees to perform or refrain from performing specific acts

• Example – Waiver or Informed Consent

Clauses

• Holdharmless Clause

• Indemnity Clause

• Insurance Clause

• Cancellation Clause

Hold Harmless and Indemnity

 The Travelodge shall indemnify and save harmless Carleton, its

governors, directors, agents, students and employees from and against all liability whatsoever, including but not limited to liability arising from the serving of alcohol on the Premises, for losses, charges, claims demands, payments, suits, actions, recoveries and judgements, including legal fees and expenses of every kind brought or recovered against either Carleton, its governors, directors, agents, students, and employees or the Travelodge Ottawa West by reason of an act, error, or omission of the Travelodge Ottawa West, its agents, employees or licensees in regards to the leasing of the Premises described in this Lease, including, but not limiting the generality of the foregoing, loss or damage to property and injury to or death of any person.

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Insurance Clause

• During the Term Travelodge shall maintain General Liability Insurance, including coverage for Liquor Liability in an amount not less than Twenty Million Dollars ($20,000,000 CND). Carleton shall be added as an Additional Named Insured to this policy.

Cancellation Clause

• Cancellation policy: This contract is not binding until Opulence Events has received the deposit cheque which is 50% refundable up to 14 days prior to your event date and non refundable after that date. However Opulence reserves the right to invoice planning charges for site tours and inspections should you sign the contract and cancel before the deposit is received. All Cancellations must be provided in writing and addressed to your sales representative, this can be given via email or fax. please call to assure

that the cancellation letter has been received.

Force Majeure

• Force Majeure literally means "greater force". These clauses excuse a party from liability if some unforeseen event beyond the control of that party prevents it from performing its obligations under the contract.

Force Majeure

• Typically, force majeure clauses cover natural disasters or other "Acts of God", war, or the failure of third parties--such as suppliers and subcontractors--to perform their obligations to the contracting party. It is important to remember that force majeure clauses are intended to excuse a party only if the failure to perform could not be avoided by the exercise of due care by that party.

Force Majeure Clause

• “Neither party shall be liable in damages or have the right to terminate this Agreement for any delay or default in performing hereunder if such delay or default is caused by conditions beyond its control including, but not limited to Acts of God, Government restrictions (including the denial or cancellation of any export or other necessary license), wars, insurrections and/or any other cause beyond the reasonable control of the party whose performance is affected.”

Event Risk Management

• It is everyone’s responsibility to prevent incidents causing loss and bodily harm from occurring

Event Risk Management Strategies

• Everyone’s responsibility to act as risk managers and maintain standard of care – Make sure know your responsibilities

• Life guarding• First aid• Crowd control

– If in doubt ask

Event Risk Management Strategies

• Under TORT

• Waivers or Informed Consents

• Disclaimers

• Instructions

Venue Risk Management Strategies

Pre event meeting

Facility staffing – Training

- Number on duty

- Main contact

• Facility Emergency Plan- do they have one Locate exits immediately

Check for clear exit paths Do you feel safe? Pre arrange a meeting place

Vehicles

• Bus Leases

• Car Rentals

• Using members vehicles

Statutory and Regulations

• Standard of Care - Regulation set minimum standard, try to exceed what is required

• Work with authorities prior to and at the event

• City of Ottawa Event Risk Committee– Police– EMS– Bylaw– Facilities

Manager, Risk and Insurance

Tony Lackey, B.A. FCIP, R.F.

Finance Office

603 Robertson Hall

520-2600 ext 1473

tony_lackey@carleton.ca