What are the rules for insurance for events that have liquor licences?
Any time your facilities are rented to parties that will be consuming alcohol on the premises:
Proof of liability insurance shows that there is insurance coverage in place should an incident arise during the event and provides a first line of protection for your organization. In the case of an incident, your insurance through RMA will protect your organization but will not cover the renter. The renter would be required to fund their own defence which can be very expensive depending on the severity of the claim. As renters are usually members of your community, you do not want to be involved in someone suffering financial hardship because they did not have adequate insurance in place for their event.
If your organization is hosting its own event and is purchasing a liquor licence, you RMA Insurance policy will automatically cover your organization; a special Event Liability policy is not needed. The liquor licence must be in the name of your organization for the coverage to be in effect.
When should you ask for proof of insurance from a renter and when can you allow them access without it?
Different renters pose different levels of risk when renting your facilities. Any time a medium or high risk renter asks to use your facilities you should ask for proof of insurance. Medium to high risk includes events where alcohol is involved, activities involving children, or the operation of a business out of the facility, such as teaching a class for a fee. If the renter is a low risk – such as scrapbookers, quilters, art clubs, or other situations where there is little chance of injury – we advise you to use your discretion when it comes to asking for proof of insurance. If you are unsure, please contact RMA Insurance and we will advise you of the best course of action.
How often should we have our rental agreement reviewed?
As the legal and insurance worlds are constantly changing, we recommend that you have your rental agreements reviewed at least every five (5) years or each time you propose a major change to the wording. Reviews should be performed by RMA Insurance to go over the insurance requirements portion, as well as a lawyer for the remainder of the content.
When should we have participants sign waivers?
Participants should be required to sign a waiver for participation in any event where there is a chance of injury, regardless of how small that chance may be or how minor the potential injury. Waivers – which should include a ‘hold harmless’ clause – help prevent small claims from arising by educating participants on any risks prior to participation. RMA Insurance can supply sample waivers upon request.
Are insured limits related to a facility’s accounting book value?
No. Insurance is based on the replacement cost of the facility. This is calculated based on the current size and construction of the building, and what we believe it will cost to rebuild the facility in the event of a total loss. This calculation has no relation to any accounting value.
Why should we be aware of deductibles?
Other than a bodily injury claim to a third party, your organization will be responsible for paying a deductible. These deductibles range from $1,000 for property loss to a third party, and up to $25,000 for claims against the board of directors. Please be aware that you may need to have funds available to pay the deductible.
Do I have Directors and Officers Liability Insurance?
Directors and Officers Liability Insurance is included under General Liability Insurance coverage.
Where can I find your forms?
You can fill out an online claims form directly from your web browser. All other forms are available on our Insurance forms page.
Who should I contact for questions about claims?
For any questions or more information please contact our risk management team!