I admit that my initial response to municipal marinas demanding to be added as an additional insured was somewhat adversarial. After further consideration my position has softened because boat owners (my clients) are not being harmed and there is even some benefit - see my earlier blog entry. As it turns out there may be more to this story with new legislation being considered at Queens Park.
A recent article in Canadian Underwriter sheds light on legal and insurance issues facing municipalities (see link below). If you don't know anything about joint and several liability this is a good introduction.
As the article explains, if 2 or more parties cause an accident fault is divided between them. The law says that a party who is only 1% at fault can be held responsible for paying 100% of the judgement. The well-insured party who is 1% at fault (aka Deep Pocket) pays and then has to go after co-defendants who may be uninsured or under-insured. Municipalities are well-insured so they are the best "deep pocket" and easiest path to satisfy a judgement. As a result Municipalities are seeing their insurance premiums increase to unsustainable levels. When you add the risk of unlimited environmental claims like we saw in the Kawarthas and you can understand why municipalities are starting to push back against the status quo.
This is an issue that affects everyone because in the end the taxpayers pay the premiums. For my part I will not be critical of municipal marinas seeking some level of protection from what appears to be an uneven playing field. If you keep your boat at a municipal marina perhaps this explains just one of the issues going on behind the curtain.
http://www.canadianunderwriter.ca/news/ontario-to-reform-law-stipulating-joint-and-several-liability-in-negligence-lawsuits-against/1002945131/
A recent article in Canadian Underwriter sheds light on legal and insurance issues facing municipalities (see link below). If you don't know anything about joint and several liability this is a good introduction. As the article explains, if 2 or more parties cause an accident fault is divided between them. The law says that a party who is only 1% at fault can be held responsible for paying 100% of the judgement. The well-insured party who is 1% at fault (aka Deep Pocket) pays and then has to go after co-defendants who may be uninsured or under-insured. Municipalities are well-insured so they are the best "deep pocket" and easiest path to satisfy a judgement. As a result Municipalities are seeing their insurance premiums increase to unsustainable levels. When you add the risk of unlimited environmental claims like we saw in the Kawarthas and you can understand why municipalities are starting to push back against the status quo.
This is an issue that affects everyone because in the end the taxpayers pay the premiums. For my part I will not be critical of municipal marinas seeking some level of protection from what appears to be an uneven playing field. If you keep your boat at a municipal marina perhaps this explains just one of the issues going on behind the curtain.
http://www.canadianunderwriter.ca/news/ontario-to-reform-law-stipulating-joint-and-several-liability-in-negligence-lawsuits-against/1002945131/
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