Summer break from school will mean more time for children to play – inside or outside. Adults on summer holiday will also contribute to the uptick in activity at residential complexes.
Such increases in activity have condo and strata corporations wondering how it may affect their risk exposures.
They have questions. HUB has answers:
If someone is injured while on the property, could the corporation be liable?
Determining liability is complicated. It involves reviewing the specific incident as well as the allegations. In fact, allegations can be made regardless of whether or not the corporation is liable. The question isn’t, “Could the corporation be liable?” Instead, it should be, “Could someone allege the corporation is liable?” The answer is: Yes.
Does having temporary swimming pools or other attractions in common areas increase the corporation’s exposure to risk?
Yes. An increase in such attractions means an increase for potential injuries. Those kinds of exposures increase the chances of a corporation to be held liable in the event of an alleged accident.
Even if the corporation did not install the attraction, such as playground equipment or pool, it may be held responsible to some extent, especially if the attraction is on common or limited common property. It is common practice (and in some cases law), that certain safety standards are implemented for such things as pools, hot tubs and playgrounds. The common expectation is that the corporation would direct the plans, installation, use and maintenance of such attractions.
If more children are playing in areas designated as the corporation’s responsibility, does that increase its exposure to risk?
Yes. The same logic noted above, where an increased potential for injury corresponds to an increased risk of alleged liability, also applies here.
If someone is injured on the property, will the corporation’s insurance cover it?
A commercial general liability policy is intended to cover the corporation’s legal responsibility in the event of bodily injury or property damage. If a third party is injured from using equipment on a property for which the corporation is responsible – and brings action against the corporation – the general liability policy would provide legal defense (subject to its policy terms and conditions). And if the corporation was found liable, the insurance company would respond in accordance with the corporation’s policy terms, conditions and limit. Note: The insurance company reserves the right to investigate, defend and settle claims.
IMPORTANT: If someone is injured on the property, the corporation must immediately notify HUB as your insurance broker so we can advise the insurance company. It is a policy condition that the insurer be notified of any incidents that may lead to a claim. Failure to do so could jeopardize coverage if a claim is eventually made. The corporation must not accept any responsibility for an incident.
How can the corporation manage risks due to increased activities at the property?
Depending on the type of activity in question, the corporation can:
- Ensure all outdoor lighting is functioning, especially as daylight hours eventually grow shorter.
- Repair any deteriorating fences, walls and pavement.
- Properly secure any potentially dangerous equipment (dumpsters, compactors, landscaping tools, electrical / mechanical equipment, control rooms, etc.).
- Remove any overgrown or sick trees, and address landscaping issues.
- Install signage of the maximum speed limit within the complex.
- Install caution signs regarding children at play.
- Consider using cones or other methods, such as speed bumps, to manage traffic.
- Ensure that all equipment installed on the property for which the corporation is responsible is managed / maintained according to best practices, regulations and bylaws / laws.
- Develop a process to minimize slipping hazards on walkways, and document these activities as needed.
This information is intended to provide readers with general information only. Readers are urged not to rely simply on the content of the bulletin but to consult with appropriate professionals on a case-by-case basis. Each loss is unique, and the application of the insurance policy must be evaluated based on the specific claim or loss brought forward.