MUNICIPAL INSURANCE ASSOCIATION OF BRITISH COLUMBIA
20 - 10551 SHELLBRIDGE WAY, RICHMOND, BRITISH COLUMBIA V6X 2W9 (604) 270-8226

ALL MIA MEMBERS

RICHARD TAYLOR, SECRETARY MIA
KEN OLIVE, MANAGER MIA

MARCH 17, 1988
LIABILITY INSURANCE COVERAGE, FESTIVAL GROUPS

Many of B.C.'s communities have a recreational or cultural event
SLonsered by a non-profit society or group. These events usually
take place in municipal parks or on municipal streets. The group
will make application to Council for a permit to hald the event.
Council on being presented with a request to hold a local cultural
or recreational event has at least four choices with respect to the
liability which may arise from the use of municipal property:

1. Grant the permit without an insurance requirement.

2. Grant the permit and apply to MIA to add the event and event
arganizers as an additional insured to the MIA policy.

3. Grant the permit requesting that the municipality be acded as an
additional insured on an insurance policy purchased by the event
Sponsor.

4. Do not grant a permit.

If the municipality chooses option #1, they can be held liable for
bodily injury or property damage which may occur. As owner, Lessor,
or occupier of the property, the municipality is responsible for
events which occur on it. This responsibility is very extensive as
detailed in the Occupiers Liability Act.

In choosing option #2, the municipality (with the approval of the
Municipal Insurance Association) has provided the full caverage of
the municipalities’ policy to another party. Its policy (and
deductible) will respond in the event of a claim which arises as a
result of the negligent acts of the named insured.

In option #3, the municipality has transferred sone of the risk
(generally $2 million) to an insurance policy carried by the event
sponsor. The municipality is protected from a claim to the extent
of this policy after which its own policy would respond.

Option #4 is self-explanatory and has been chosen as a legitimate
risk management tool where the event is too dangerous, insurance too
expensive or for any other reason.

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