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Insurance

Your organization must provide adequate insurance for the event to cover liability and property damage.

Liability insurance will protect your organization if someone is injured. For a one time high risk event premiums may be very high. Some organizations may already have liability insurance and may not need additional insurance for the event. If your organization has insurance, be sure to consult with your insurance representative to find out if you are covered for a specific event. If you do not have liability insurance it is imperative that you obtain it for your event.

In addition to comprehensive insurance coverage for the event, you may want individuals, groups or businesses that are providing high risk services as part of the event to have their own insurance.

If you are planning an outdoor event you may wish to obtain special event insurance which can ensure against losses due to bad weather.

Proper planning will ensure that liability concerns are minimized. Your insurance representative will be able to guide you through areas that require attention and ensure that your coverage matches your requirements. By following some simple guidelines, the cost of the required insurance may be reduced.

Check the yellow pages under "Insurance Agents/Brokers" for contacts. Consult other organizations to identify insurance agents with experience in insuring special events. National or provincial sports associations may also provide event insurance at lower cost.

Events that are held on City property must maintain public liability insurance of no less that two million dollars, naming the City of Thunder Bay as an additional insured.

Directors' and Officers' Liability
All directors and officers of corporations, whether for-profit or non-profit, should consider the protection of a "Directors’ and Officers’ Liability" policy. Besides protecting the individuals, the policy will also reimburse the Corporation for amounts it is required to pay because of claims against individual directors and officers.

Directors and Officers of corporations can be sued in their own name in many situations. Typically, ex-employees can try to recover unpaid wages directly from the directors and officers, in the event of the corporation’s insolvency. The law is very harsh on directors and officers, who can be automatically responsible for unpaid wages, even in the absence of negligence.

There is a similar automatic liability for unpaid taxes. Claims can also come from creditors, banks, shareholders, customers and governmental authorities. When things go wrong, it is very easy to allege some form of negligence by a director or officer. Even if the court rules in the defendant’s favour, the defense costs can be high.

Many corporations have a by-law allowing them to indemnify directors and officers out of corporate funds. However, if the corporation is bankrupt, this is of little use to directors and officers facing large claims. For more information contact a local insurance broker.