Insurance & Risk Management

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What is my risk if there is a serious injury accident at a Rotary event and what steps should I take now to mitigate the risks?

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Craig Horrocks

This question was asked after the media reports that the tragic accident at the Waipara Adventure Centre resulted in charges being laid against the community organisation that owns the centre under the Health and Safety Act.

The organisation is a trust that is not incorporated so the trustees are the organisation.

This answer does provide a long explanation of the law.  

Being prosecuted by the Government is a  very serious intervention in anyone's life, let alone someone that is helping the community.  Even more so ,when you realise that while your organisation's insurance may pay for a lawyer to defend you, any fines are a personal liability.  If you are deemed to have been involved as someone in control then you can be fined, in some cases, up to $300,000.  That is not insured or insurable and may be imposed on each person in control, each trustee, each director, each person in control.

First, the myths. The Health and Safety Act has exemptions for volunteers.  That does not mean that a community organisation or its officers are exempt.

Secondly, it follows that is is very important to understand how the Act distinguishes between volunteers and others that are found to be in charge or have 'control'.

Thirdly, if you are in some way drawn in by the control tests your risks are:

  • being investigated

  • being prosecuted

  • being fined and possibly imprisoned

  • having your personal assets on the line

  • have your reputation affected.

The tragedy of the Waipara Adventure Centre accident is a tragedy for all.

Most importantly, the injured (and in this case the injuries were terrible) but also:

  • for all those kids that were there at the time of the injury,

  • for the staff and volunteers, the Waipara Adventure Centre as an organisation that has served so many groups since 1993, 

  • for those officers that will be involved in the prosecution and

  • finally for the Worksafe team, Crown Law and judicial officers that will be discharging their duties under the Health and Safety Act to prove the case and on conviction, hold the responsible to account.

This answer is not about whether any of the process is 'right' or 'fair' it is about what you can do to to have peace of mind that you are doing the best with Health and Safety.

So a checklist - very high level and as simple as possible:

  1. who is the legal entity that is in control of the event?

  2. if the legal entity is not incorporated how is the personal liability handled?

  3. what insurance is needed? e.g do you have cover for legal expenses if you are prosecuted?

  4. how does your Health and Safety plan set out what is needed and how do you know what is needed in your Health and Safety plan?

  5. if there is physical activity, is there an approved industry code?

  6. do you have a Crisis plan? this should ensure that in a crisis you communicate without making things worse such as admitting liability before the full picture is investigated and known.  An admission at the wrong time (especially before consulting your insurer) h can result in loosing your insurance cover

  7. do you have the right contractors and advisers?  for example if you need traffic management do you have to have an approved traffic management plan or if you have fireworks do you have an accredited insured operator? and if you don't have such contractors and advisors do you understand and have the right processes in place for the risks of the activities

  8. is it clear who are the volunteers and who has the obligation to properly train and supervise the volunteers

  9. who is at risk - if kids remember consent forms are a waste of time

  10. finally, be selfish, ensure that if you are at risk you have an indemnity from your organisation.

If you have an event that you are controlling or part of the supervising group and need advice file a Helpdesk ticket.

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