Basics of Liability

Liability Issues and Coverage

How is Liability Determined

• Status of Injured Party

• Duty of Care

• Damage actually occurred

• Damage was foreseeable

Status of Injured Party

• Trespasser

• Invitee

• Licensee

What was the Duty of Carea person acted with reasonable prudence:• watchful• attentive• cautiousIf a person's actions do not meet this: •acts are considered negligent •damages may be claimed

Was the Duty of Care Breached

• Were Safeguard Procedures in place?

– Were these procedures violated?

• Was the loss reported immediately?

• What actions or omissions of others

contributed to the loss?

• Was the property being used only for state purposes?

• Who signed for the property and who had physical custody at the time of the loss?

• Did the employee/volunteer demonstrate reasonable care of the property?

Was the Duty of Care breached

Damage Actually Occurred

• Was Someone Injured:–Physically–Emotionally–Financially

• Was Property Damaged or Stolen• Was There A Misrepresentation of

Product

Was The Breach of Duty The Cause

• Was There A Third Party Involved

• Was Another Property Involved

• Were Expectations Unrealistic

• Was Nature Involved

Damage Was Foreseeable

• Was it reasonable to assume your

actions would cause a loss

• Was it reasonable to assume your

failure to act would cause a loss

Who will make a claim

• Property owner

– neighboring property owners

• Volunteers & Staff

• Visitors & Trespassers

• Licensee

Property Owners

• Bodily Injury

• Property Damage

• Personal Liability

• Loss of Use

• Contractual

Volunteers

• Bodily Injury

• Personal Injury

• Property Damage

Staff

• Workers Compensation

• Employers Liability

• Employers Practices Liability

Visitors & Trespassers

• Bodily Injury

• Personal Injury

• Property Damage

Licensee

• Bodily Injury

• Property Damage

• Personal Injury

• Contractual

What Coverage is applicable

• General Liability

• Directors and Officers Insurance

• Workers Compensation

General Liability (includes Premise and Operations)

• Bodily Injury• Property Damage• Personal Injury• Contractual• Premise Medical• Fire Legal

Bodily Injury

• Medical Expenses

• Pain and Suffering

• Loss of Wages (measured by Capacity)

• Loss of Future Benefits

Outside resources such as Social Security and insurance benefits or payments are not typically allowed to be part of any litigation.

Property Damage

• Actual Damage to Property

• Loss of Use

• Loss of Income

Personal Injury

• Libel• Slander• False Advertising• Copyright Infringement• False Arrest• Wrongful Detention

Contractual Liability

• Contractually assuming the liability or

obligations of another

• Commonly called Hold Harmless or

Indemnification

Fire Legal

• Fire Damage to the premise you

occupied that belongs to another

• Restricted to that particular part of the

property you occupy

Premise Medical

• Medical Costs

• No-Fault Coverage

• Limited Coverage

–typically $5,000 to $25,000

Directors and Officers

• For legal actions brought for alleged “wrongful acts” as a director or officer • Payable to the directors, officers, or to

the organization(s) • Indemnifications for certain damages

(losses) or advancement of defense costs

Workers Compensation

• Provides Wage Replacement• Provides Medical Cost• Mandatory relinquishment of employee

right to sue employer for Tort of Negligence– “the compensation bargain”

AVOIDING A LOSS

• Proper Training of Staff/Volunteers in Procedures• Premise Safety Measures• Contract Awareness• Obtaining reliable Services and Vendors• DOCUMENTATION

Training of Staff and Volunteers

• Documented Record of Individuals Trained• Documentation of Processes Trained For

Event Safety• Incident Handling• Incident Reporting

Premise Safety

• Checklist for inspections

• Safety/Warnings Signage

• Adequate Staffing

• Adequate Lighting

• First Aid Kits

Contractual Considerations

• Understanding Whom has what

–Obligations

–Responsibilities

• Never Individually sign or accept

responsibility for the Organization

Services or Vendors

• Obtain Certificates of Insurance with limits that match those of the organization• Review Contract or Purchase Order for

Indemnification or Hold Harmless language• Who is responsible for the security

of Vendors property

Links or Information on RKI Website

• Risk Control Checklist• Volunteer Management Information• Contacts for Additional Information• Question Card

• www.rkiinc.com–Click on the Library

Thank You Any Questions?