Contract Liability

In the ordinary course of Hockey Canada operations, contract liability exposure chiefly arises from the execution of written agreements for the use of arenas.

Statutory Liability

To a major extent, Statutory Liability can be thought of as arising from a law that takes a specialized area of negligence and which then goes on to define both it and the specific penalties that will be applied upon conviction. It may be that Statutory Liability is the sole consequence of a particular act or, alternatively, it may be accompanied by a civil suit brought by a third party seeking damages.

For example, there are provincial statutes dealing with liquor law liability that set out specific regulations for the serving of liquor to the "public". If you are granted a sanction and if these rules are not observed, you are likely to be charged under the appropriate Section of the Act in question, and subject to penalties, including fines and punitive damages. At the same time, you may be simultaneously liable for third party damages if someone has been injured as a consequence of your having broken the Statutory rules. Your conviction under the Statute will make it more difficult to defend against the civil liability suit that is likely to be brought in parallel.

General Liability Insurance

Legal liability is complex, and the penalties for lack of care and prudence can be harsh. No liability insurance policy will ever cover against all the different forms of legal liability suits, Common Law, Contract Law or Statutory Law, that may be brought. Finally, the cost of insurance for associations similar to Hockey Canada will directly rise and fall in relationship to the claims that the underwriter is asked to pay.

The first line of defense against legal liability is a conscientious program of Risk Management that systematically seeks out ways of eliminating avoidable hazards, promotes prudent conduct, and a proper sense of the "duty" that is owed to everyone involved.

The second line of defense is legal liability insurance. In essence, the basic insuring agreement says that it will pay on our behalf for all claims that we become legally obligated to pay in consequence of bodily injury, or property damage. It will also pay for something that is called "personal injury", and this includes legal liability for false arrest, libel, slander, defamation of character and similar matters. This type of insuring is broad and serviceable, but it does not cover any and all forms of liability. The terms and conditions of the policy itself govern the coverage and take precedence over this discussion wherever there may be a discrepancy. A copy of the Hockey Canada policy is on file in the Hockey Alberta office.

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