“The imposition of such a duty and its consequent potential for legal exposure to the corporation would foreseeably lead to ‘sponsor chill,’ as many corporations might become reluctant to provide sponsorship funding to various charitable and recreational organizations and events, to the detriment of society as a whole.”
The plaintiff in the case suffered a spinal cord injury during an OSA indoor soccer match. OSA had obtained a policy of accident insurance for its members and the amount payable under that policy was $40,000.
The plaintiff sued OSA, alleging that the insurance coverage was “inadequate.” He also sued the corporate sponsors, saying they owed a duty of care to make inquiries of the OSA to ensure “adequate” insurance coverage was in place.
Coincidentally, following the court’s decision, Marsh Canada issued a special report on events management. The Marsh report is not connected to the case in any way, but it does touch on risks associated with any major event planning.
“Not-for-profit organizations rely heavily on special events for fundraising,” the report says. “As such, it is important to note that the event organizers are responsible for the safety of event attendees — and that short-term liability coverage exists to protect organizers — even when the event is a small one.”
According to Marsh, event planners will want some kind of customized insurance approach for their particular event. Special attention should be paid if:
• children or minors attend.
• hazardous activities are involved.
• gambling takes place.
• large crowds are anticipated.
• alcohol will be served.