liability Archives - Cade Associates Insurance Brokers Limited

Social Host – Understanding Your Liability

Ross Fraser — Tue, 04 Dec 2018 17:40:01 +0000

With the holiday season upon us, will you be throwing a party or celebrating a special occasion? Do you plan on serving alcohol? If yes, while we wait for our invitation to arrive, let the Cade team discuss the liability exposure that comes with these events, and how to take steps to prevent an incident. Serving alcohol or facilitating its consumption beyond intoxication might result in your being held responsible in a liability claim where alcohol is a contributing factor.

What’s the Liability?

As a personal Host, you do have potential liability for bodily injury or property damage to third parties which arises out of the negligent serving or distribution of alcohol at your party, be it a small backyard BBQ setting, or a holiday gathering. The insurance provided by most home/condo/tenants insurance policies may protect you from a liability claim arising from a private social gathering in your home, but you should confirm this with your broker/agent first.

As a business or non-profit organization, it is very important that you review your insurance protection first with your broker or agent if you have any plans to host such an event. While some commercial insurance policies are able to accommodate an event involving liquor, additional information may be required to endorse the policy accordingly. In some cases, host liquor liability is expressly excluded and must be arranged by your Broker for your function.

Liability for claims arising out of social hosting can arise from many different avenues, including:

Server – Serving people past the point of intoxication;
Occupier – Whether you own the space or are temporarily renting the venue, you have responsibility for protecting the people on premises from harm;
Employer – You have a responsibility for your employees at staff functions.

Special Occasion Permit

Functions with more attendees, ticketed events, or those involving the sale of alcohol may require the purchase of a Special Occasions Permit. SOPs allow for the sale and service of alcohol on special occasions, and are required any time alcohol is offered for sale or is served anywhere other than in a licensed establishment (eg. bar or restaurant), or in a private place (eg. office or home). Special Occasion Permits are available from the Alcohol and Gaming Commission of Ontario (link) and are reviewed and approved based on the nature of your function.

Party Alcohol Liability Insurance

Party Alcohol Liability insurance is a low-cost policy, designed to provide protection when lawsuits are brought against individuals, organizations, or companies who host events with alcohol service. This is typically provided when you are in a situation where an SOP is required, such as weddings, stag & does, banquets, dances, socials, cocktail/Holiday parties, etc. Contact your Broker to request a quote.

Risk Management & Avoiding Issues

Here’s some advice for curtailing over-consumption of alcohol:

Be aware of the designated drivers in attendance. If other guests are unable to drive safely, the DDs may be able to help
Provide non-alcoholic drink and food options to all guests throughout the party
Implement a cut-off time for alcohol service, even at private functions. For example: stop serving alcohol some time before you expect your guests will leave. You may also serve other drinks, like coffee or tea, and encourage guests to have water.
Be prepared with excess cash to offer to pay for guests’ cab rides if necessary. You may also have extra space set up in your home to house last-minute overnight guests.
Have no reservations about asking for someone’s keys if you suspect they are too intoxicated to drive.
If alcohol service is being provided at a larger function, or one involving an SOP, ensure that servers are Smart Serve certified.
The legalization of cannabis adds an additional layer of complexity, as guests may mix intoxicants. Keep a keen eye on your attendees to watch for over-consumption.

What To Do In A Claim

In the event of a claim, here’s what to do:

Contact your representative at Cade as soon as possible.
Make a note of all the relevant details of the incident, including the date, time, witnesses’ names and contact information.
Don’t confess liability; always direct any discussions with the claimant to your insurer for further comment.

Whatever the occasion, be wary of how much your attendees are drinking. It is your responsibility to ensure your guests are having a good time in a safe manner. Take the lead on educating yourself and your team about what you’re responsible for when holding a party. Be prepared with several methods of getting your guests home safely if they are too intoxicated to drive themselves and others.

Get in touch with us today at clientservices@cadeinsurance.ca to discuss how to prepare for your next event.

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Cannabis Legalizaiton in Canada

Ross Fraser — Wed, 17 Oct 2018 08:00:07 +0000

On October 17^th, 2018 Canada became just the second country in the world to legalize the recreational use of cannabis. While the implications of this legalization will be wide-reaching and have yet to be fully realized, there are some important insurance implications that you should keep in mind.

Driving Safety

Impaired driving remains an illegal act, whether the impairment is caused by alcohol or drugs, and is the leading criminal cause of death and injury in Canada. With the legalization of cannabis, families are encouraged to discuss the dangers of drug-impaired driving with the same seriousness as drinking and driving has been approached in the past. New legislation allows Police to use approved drug screening devices, similar to their response when dealing with a suspected drunk driver. Remember that there is a zero-tolerance policy with respect to young and novice drivers.

For Auto Insurances purposes, a conviction for drug-impaired driving is comparable to a conviction for alcohol impaired driving. Both are considered Criminal Code offences and will result in significant premium surcharging or even declination of coverage. In no uncertain terms, driving while under the influence of any drugs or alcohol is unacceptable.

At Home

The new legislation allows Canadians to legally grow up to four plants per residence. Please note that this is a per residence limit and not a per person limit. If you are considering growing plants under the new legislation, please read the rules carefully to ensure you are in compliance. From a risk management perspective, growing can involve the use of specialized lighting or other equipment and licensed electricians should be consulted or used where necessary. As with any plant, growing inside your home can attract pests, which can cause a significant nuisance or even damage to the rest of your home. Cannabis plants in your home can also represent an allurement for ‘smash and grab’ style burglaries, meaning they should be stored out of sight and in a secured location. A monitored burglary and fire alarm system should be considered.

Each Insurer has their own approach to home-based growing, and we may be in touch with any specific underwriting questions or requirements your Insurer may have.

Host Liability

With the legalization of cannabis, hosts should approach service and consumption in the same manner as alcohol. As you may already know, whether you are hosting friends in your home or a work social event, you have potential liability for bodily injury or property damage to others, arising out of the negligent serving or distribution of alcohol. Hosts have been found responsible by the courts for the actions of their guests who consumed past the point of intoxication. If alcohol or cannabis will be consumed at your event, consider asking participants if they have a designated driver, ensure non-alcoholic beverages and food options are available, have cash on hand for cabs to prevent impaired driving, and keep a watch for over consumption or signs of intoxication. Call our office if you have any questions, or if you would like a quote for separate Host Liability Coverage for your event.

Travel

Despite some states having different rules, cannabis possession is still illegal under U.S. federal law – do not attempt to enter the United States with any cannabis. While there is some allowance while flying within Canada, cannabis is not permitted aboard international flights.

Insurance policies contain exclusions that apply when Insureds engage in illegal activity, so it is up to all of us to ensure we fully understand and adhere to the new laws of the land. To help, visit the following links:

Canada’s Cannabis Act Website – canada.ca/cannabis
Ontario’s Cannabis Website – https://www.ontario.ca/page/cannabis-legalization

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Things you might not have told your insurance broker about – but should.

Cade & Associates — Mon, 17 Jul 2017 19:37:34 +0000

Our homes are places of comfort and rest, places of play (and work for some), places of collections and family heirlooms, and places that are filled with the people and things that matter most to us. The china cabinet that belonged to your great-grandmother, the prized selection of vintage wines you’ve been adding to for years, the knitting business you run from the comfort of your living room— these are all things that are normal parts of your everyday life, yet you might not be thinking about how valuable (and possibly vulnerable) they are to loss or damage. It might not even have occurred to you to about their impact on insurance. Here’s our list of common things you might not have told your insurance broker about – but should.

Jewellery

Though you might be under the impression that jewellery is automatically protected by your home insurance, most policies have a maximum limit, typically around $6,000, which may not be enough for you. If you have any particularly valuable pieces, or a notable assortment of jewellery, talk to your insurance Broker to ensure your policy is protecting you appropriately.

Artwork

Whether purchased or inherited, your collection of artwork may be covered by your home insurance, however the coverage is often limited and not sufficient for higher valued items or larger collections. There are excellent insurance products specifically designed for art collections that offer tailor-made coverage, through underwriters who specialize in the art community. Insuring artwork requires not only a strong understanding of the necessary coverages, but also trained and qualified claims response teams to provide the proper repair/restoration expertise and settlement in a claim. If you own any artwork, be sure to review this carefully with your Broker.

Wine & Liquor Collections

Home insurance policies may include coverage for a collection of wine and liquors in your home, but there is often a maximum limit that may not be sufficient to replace the value of your personal collection. If you are a collector of wines or liquors you should review this with your broker and don’t forget to mention any climate-controlled storage areas, if you have one or are considering adding one in your home!

Home Based Business

If you run your business from home, it is important to have a conversation with your Broker to be certain you have appropriate insurance. Your home insurance might already be sufficient, or may be updated to include your business insurance requirements. However, in many cases, a specific business policy may be a better fit. If you have a notable amount of equipment in your home related to your business, if you have clients visit your home office, or if you frequently travel to your clients or suppliers place of business for your work, it is especially critical that you discuss all options available with your insurance Broker.

Loss Prevention Measures

Measures that you have taken in your home to help prevent damage to your property should be discussed with your Broker, since they may allow access to better coverage, higher limits of insurance, or even discounts to your premium. Loss prevention measures to reduce water damage in your home include installing a back-water valve and/or a sump pump with battery backup. Centrally monitored alarm systems are valuable in reducing the possibility or the intensity of damage. Today’s alarm systems can be configured to provide early detection of fire, alerts of attempted break-in, sensor discovery of a sudden drop in interior temperature that might result in frozen water pipes, and even a change in water pressure which might indicate a leak in your water system – all excellent ways of potentially reducing damage. While there are an increasing number of web-enabled systems using your smartphone to monitor home systems, typically insurance companies acknowledge only alarm systems that are monitored 24/7 by a professional service when considering coverage and pricing.

Maintaining the proper insurance to provide the protection you and your family need to continue to enjoy your place of enjoyment and calm is important to us. Take a hard look at your home and the things in it – are they all adequately covered? If there are aspects of your insurance that require review, we want to help. Visit https://cadeinsurance.com or email us at clientservices@cadeinsurance.com for more information.

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