Chapter Risk and Liability

Chapter Reasons for Increasing Litigation Trend 1. Participation 2. Attitudes 3. Number & Variety of activities 4. Media 5. American Experience 6. Liability & Legal rights 7. Lawyers & Legal aid 8. Settlements 9. Insurance

Chapter IMPACT on SPORT and FITNESS On the NEGATIVE side * Liability insurance costs * Cancelled programs * Cost of protective equipment * Legal activity * Impact on PEOPLE

Chapter IMPACT on SPORT and FITNESS On the POSITIVE side * Standard of care * Increased awareness * Importance of Risk Management

Chapter LEGAL LIABILITY DEFINED Two parts to the law NEGLIGENCE - form of action in the laws of torts - law of civil responsibility OMISSION - legal liability can arise out of an omission

Chapter LEGAL LIABILITY DEFINED (continued) NEGLIGENCE is the breach of a duty to exercise due care. A defendant can be held liable for negligence where injury has been caused by the failure to take reasonable precautions to prevent foreseeable harm. Shift of burden of LOSS from Victim to Defendant In a civil liability action, a person who has suffered damage or loss (plaintiff) claims the defendant is responsible for causing the injury & should pay compensation by way of an award of damages assessed by the court

Chapter To establish a claim of NEGLIGENCE, all 4 elements must exist 1. Duty of Care – the defendant owed a duty of care to plaintiff 2. Breach of Care – courts establish minimum standard of care & determine the standard was breached 3. Damage – or injury did occur to person or their property 4. Causation – direct link between actual damage/injury and the negligent act

Chapter OMISSION Failing to act when the act could be reasonably expected in a specific instance or Due to an act of commission which means performing an act in a Negligent manner. Actions related to premises or equipment may be based on Occupier’s Liability

Chapter TYPES OF LIABILITY 1. 1.Contractual 2. 2.Criminal 3. 3.Human Rights 4. 4.Torts

Chapter Liability of Fitness Instructors Often tested by asking 4 questions, know as Myers & Thornton Tests 1. 1.Is exercise suitable to the Participant? 2. 2.Was Participant progressively trained? 3. 3.Was equipment adequate? 4. 4.Was Participant properly supervised?

Chapter The Holiday Party   Sutton Group provided a “serve yourself” bar   Linda Hunt (an employee) attended party   Following the party Hunt went to nearby pub with friends, left the pub at 8:00pm   At 9:45 pm lost control of car 12.2 kilometers from pub on her way home, blood alcohol.149   Hunt convicted of DUI   Hunt suffered permanent brain damage, she filed an action against Sutton group and the pub. What do you think should be the outcome of the action?

Chapter Occupational Health and Safety (OHS) Two basic levels of OHS legislation:   Federal   Provincial OHS legislation outlines:   Responsibilities of owners, supervisors, and workers

Chapter Occupational Health and Safety (OHS) – Legal Requirements Legal requirements can be grouped into four broad categories: 1. 1.Government, employee and employer responsibilities 2. 2.Joint Heath and Safety Committees (JHSC) 3. 3.Workplace Hazardous Materials 4. 4.Due Diligence

Chapter Workplace HEALTH and SAFETY Issues SAFETY HAZARDS : Those aspects of the work environment which have the potential of immediate and sometimes violent harm to a person. HEALTH HAZARDS: Those aspects of the work environment which slowly and cumulatively (often irreversibly) lead to deterioration of a person’s Health. Typical causes include physical & biological hazards, chemicals, and stressful working environments.

Chapter RESPONSE to Workplace Health & Safety Safety Design & Prevention - special clothing - hard hats, boots, protective eye guards - Body protection like waist belts to protect backs - life lines & other types of equipment Inspection - specialists trained to observe the rules & standards - union contracts often include health & safety issues Safety Training - WHMIS- industry specific training Government   Occupational Health & Safety Act   Workplace   Labour Board

Chapter Business Insurance

Chapter What Insurance Will You Need? The type of insurance and coverage needed depends on the: size of any potential loss probability of loss resources available probability of lawsuits

Chapter Calculating Your Insurance Needs In general, the following risks can be covered by insurance: Personal injury Employment practices Loss to the business caused by death or disability Loss or damage of property Loss of income resulting from interruption of business Consequential losses Auto What type of business insurance will you need? Check out Box 9.4. In general, the following risks can be covered by insurance: Personal injury Employment practices Loss to the business caused by death or disability Loss or damage of property Loss of income resulting from interruption of business Consequential losses Auto What type of business insurance will you need? Check out Box 9.4.

Chapter Home-Based Business Insurance auto insurance for business purposes is a must Business Insurance –Business (includes General Liability) –E&O (Errors and Omissions – Liability) basic types of home insurance policies are: –Homeowner’s policy endorsement –In-home business policy/program –Business owners policy (BOP)

Chapter Employee Dishonesty Some Examples Cash register vulnerability Cheque deception Shoplifting Credit card fraud Credit card fraud Bookkeeping theft Counterfeit money Burglary Robbery Fitting room theft Fraudulent Refunds

Chapter Patents and Copyrights patentA patent is a federal government grant that gives an inventor exclusive rights to his or her inventions. Patents cover new inventions, or any new and useful improvement of an existing invention. copyrigh tA copyrigh t is the exclusive right to copy a creative work or allow someone else to do so. Copyrights provide protection for artistic, dramatic, musical or literary works.

Chapter Trademarks trademarkA trademark is a word, symbol or design, or a combination of these, used to distinguish the goods or services of one person or organization from those of others in the marketplace. Three basic types of trademarks are: 1. 1.ordinary marks 2. 2.certification marks 3. 3.distinguishing guise