Chapter 13 13-1

Risk and LiabilityRisk and Liability

Chapter 13 13-2

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 13 13-3

IMPACT on SPORT and FITNESS

On the NEGATIVE side

* Liability insurance costs

* Cancelled programs

* Cost of protective equipment

* Legal activity

* Impact on PEOPLE

Chapter 13 13-4

IMPACT on SPORT and FITNESS

On the POSITIVE side

* Standard of care

* Increased awareness

* Importance of Risk Management

Chapter 13 13-5

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 13 13-6

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 13 13-7

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 13 13-8

OMISSION

Failing to act when the act could be reasonably expected in aspecific 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 onOccupier’s Liability

Chapter 13 13-9

TYPES OF LIABILITY

1. Contractual

2. Criminal

3. Human Rights

4. Torts

Chapter 13 13-10

Liability of Fitness Instructors

Often tested by asking 4 questions, know as Myers & Thornton Tests

1. Is exercise suitable to the Participant?

2. Was Participant progressively trained?

3. Was equipment adequate?

4. Was Participant properly supervised?

Chapter 13 13-11

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 13 13-12

Occupational Health and SafetyOccupational Health and Safety(OHS)(OHS)

Two basic levels of OHS legislation:Federal Provincial

OHS legislation outlines:Responsibilities of owners, supervisors, and workers

Chapter 13 13-13

Occupational Health and SafetyOccupational Health and Safety(OHS) – Legal Requirements(OHS) – Legal Requirements

Legal requirements can be grouped intofour broad categories:

1. Government, employee and employer responsibilities

2. Joint Heath and Safety Committees (JHSC)

3. Workplace Hazardous Materials4. Due Diligence

Chapter 13 13-14

Workplace HEALTH and SAFETY Issues

SAFETY HAZARDS:Those aspects of the work environment which have the potential ofimmediate 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’sHealth. Typical causes include physical & biological hazards,chemicals, and stressful working environments.

Chapter 13 13-15

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

GovernmentOccupational Health & Safety ActWorkplaceLabour Board

Chapter 13 13-16

Business Insurance

Chapter 13 13-17

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 13 13-18

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 13 13-19

Home-Based Business InsuranceHome-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 13 13-20

Employee DishonestySome Examples

Cash register

vulnerability

Cash register

vulnerability

Cheque deceptionCheque

deception

ShopliftingShoplifting

Credit cardfraud

Credit cardfraud

Bookkeeping theft

Bookkeeping theft

Counterfeit money

Counterfeit money

BurglaryBurglaryRobberyRobbery

Fitting room theft

Fraudulent Refunds

Fraudulent Refunds

Chapter 13 13-21

Patents and CopyrightsPatents and Copyrights

• A patentpatent 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.

• A copyrighcopyrightt 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 13 13-22

Trademarks Trademarks

• A trademarktrademark 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. ordinary marks

2. certification marks

3. distinguishing guise