Facilities & Their Users A new approach to an old problem Presented by: Jim Stirling B.F. Lorenzetti & Associates

Objective  Review the users... who are they?  Lease agreements  Insurance implications !!  A new partnership

Who are the users?  Two types of users: The first type (Type-1) includes organized sports or other provincially or nationally organized groups such as Scouts Canada, Girl Guides and the like. - They normally sign long term agreements, - Agreements are renewed every year, - They have a formal structure, - Are primarily community-service oriented,

Who are the users? -Live in and pay taxes in the community, -Volunteer in the community, Generally speaking, citizens of the city, municipality, town, etc. and have an insurance program in place through the Provincial or National body.

Who are the users? The second type (Type-2) are loosely organized groups of adults who get together primarily to play sports- adult rec. hockey, baseball, flag football among others. - Normally sign short term agreements, - Agreements are not always renewed the next year, will go to the cheapest provider, - No formal structure

Who are the users? - Usually are not involved in the community, - Do not necessarily live in or pay taxes in the community, - Do not work, volunteer, or participate in the well-being of the community, - Generally speaking, have no particular ties in the community and do not have any insurance in place

Lease agreements  Type-1 user : Full lease generally 5 to 10 pages long Indemnity clause saving the municipality, the mayor, the City councilors, employees etc., etc., harmless from all claims for bodily injury or property damage even if these injuries are caused by the negligence of the municipality, the mayor, the employees ……..

Lease agreements Proof of insurance required for a specified limit of liability, Municipality must be added as an additional insured, Lessee agrees to waive all rights of subrogation against the municipality (not an option)

Lease agreements  Type-2 users: No formal agreement other than one page indicating how much they had to pay per hour for the use of the facility and the dates and times for that usage, No proof of insurance required

Insurance Implications  Type-1 users sign leases they do not understand and waive the rights of their members, most of whom are under the age of majority, which they have “at best” limited authority to do.  Must provide a proof of insurance naming the municipality as an additional insured.

Insurance Implications  Type-2 users do not, normally, sign formal leases with special clauses outlining responsibility,  No proof of liability insurance required.

Insurance Implications  Type –1 groups are well insured, have a vested interest in the well being of the community, have training, have rules of conduct, officials, referees etc. operating in a structured fashion are held more accountable than Type-2 groups who have no ties to the community.

Insurance Implications  Injuries coming from Type-1 users are, for the most part, paid for by the group’s insurers (CGL, AD&D). If the facility should be named in most cases they would be defended, in a worse case scenario the loss would be paid on a fifty-fifty basis- user & facility.

Insurance Implications  Who pays for the injuries coming from Type- 2 users who have no formal insurance in place? Generally speaking the facility/municipality is named and must defend itself.  User group insurance programs solve this exposure as the facility/municipality are automatically added as additional insureds.

A new partnership  Some ideas concerning the Type-1 user  Facility operators have limited financial and human resources to manage their properties.  As facilities age, maintenance problems will grow and will inevitably lead to an increase in the number of injuries.

A new partnership  Type-1 users - Soccer, Hockey, Figure Skating etc. Have volunteers, coaches and officials who have a lot of knowledge and experience in their sport/activity.  Type-1 users give training in risk management and loss prevention to coaches, team managers and officials.

A new partnership  …….a new approach- Formalize a system with Type-1 users to assist the facility managers to recognize problems and correct them before the repair gets either very expensive, or causes an injury. When a particularly expensive item needs replacing, organizing a fund raiser with all of the users to help cover the cost will help give them pride and ownership of the property.

A new partnership  A think tank session with these new partners will create solutions to facility problems. Consistency can be achieved by: giving some additional training, use of check lists, having discussions on solving mutual problems or concerns. Give a sense of ownership to Type-1 users

A new partnership  Municipalities and Type-1 users must form a partnership in order to help each other reduce their exposure to losses which, at the end of the day, reduces injuries to the real user...our children.