Friday, November 3, 2017 3 Brooklin Town Crier A Special BTC Feature Insurance: Is it vexing us? By Richard Bercuson Last summer, a Toronto woman was declared a "vexatious litigant" for continually abusing the court system by filing dozens of lawsuits the court deemed frivolous. A July story in The Toronto Star stated, "Ontario's attorney general had re- quested (she) be declared vexatious, saying in a court application that her barrage of lawsuits and court motions are a frivolous 'abuse of the court's process and a waste of judicial and public resources.' "A 2016 Star investigation found she has sued at least 30 people, companies and organizations since 2011 in Toronto. She has targeted successful men she had relationships with, a school board, bank employees, a pawnshop, a dry cleaning business, lawyers who have opposed her in the courtroom, and a complete stranger." Discontent? While this may be an example of lawsuits and a litigant run amok, it perhaps explains to some degree why insurance is necessary. Which brings us to Brooklin where a degree of discontent is emerging about the need for and cost of liability insurance during events. Artfest in Grass Park seemed to have fewer participants than previous years. No one can pinpoint exactly why. However, anecdotal comments might offer some hints. One local artist who refused to be identified said that the cost of insurance might prevent participation in future such events. Despite a passion for art, this person said the additional insurance costs more than negated any profit coming from sales. Another artisan admitted adding a one-day rider to their personal liability insurance for just $5. What then does the town of Whitby require and why? Insurance is a complex and not too exciting topic at the best of times. However, as evidenced by the example at the top of this feature, it doesn't take much to set someone alight. Lawsuits abound Regional councillor Derrick Gleed, whose other career is in life and home insurance and investment advice, says things aren't getting any better. "We're in a litigious society and the lawsuits are getting bigger. "Lawyers will sue municipalities," he adds, "simply because they have deeper pockets." For nearly all events in Whitby - there are 200 of them annually - the town requires proof of a minimum of $2 million liability insurance. The cost for most events is $75, however that varies depending on the nature of the event. For instance, a street closure for a street dance, permissible only for neighbourhood events on cul-de-sacs, small crescents, and dead-end streets, costs $275. Add an inflatable play structure and the insurance requirement jumps to $5 million. When one considers there may be people floating about for whom a lawsuit is a cash cow in waiting, it's a small price to pay. Besides, as Gleed points out, the insurance requirements are not set by the town of Whitby. It is also neither a tax nor a moneymaker. The rates are determined by the company in whose insurance pool Whitby is a member along with many other municipalities. Whitby's low fees Lara Scott, Whitby's Special Events Lead, says Whitby's fees are among the lowest in the province. Cobourg's Waterfront Festival charges $310 to set up a 10 ft. by 10 ft. tent. Aurora's same space costs $125 for a day, North Bay holds an Armed Forces Appreciation Day for which it charges booths $95. Rates and the amount of insurance vary according to the level of risk. Food vendors, as an example, require $5 million for the obvious reason that the level of risk for customers is considerably higher than, say, buying art. However, it's not the purchase of something which is the issue. Imagine someone "window shopping" in Grass Park, tripping on a booth's guy wire and shattering a hip. A lawsuit follows. While it hasn't happened, it could and that's why liability insurance exists, to protect everyone involved. "The cost of insurance," Gleed says, "is also there to protect the municipality and the taxpayer because in the end, if something happens, costs will get put on the taxpayer. Participants do need to be consumers. They need to phone their insurance brokers and learn about it." In the meantime, Scott says the town is working at streamlining and clarifying the event process with a goal to providing a clearer understanding of liability insurance and its costs for all types of events. This should be completed soon. Whitby Event Definitions Courtesy of Town of Whitby Town Approved Event: An event that is free to the public, has been approved by Municipal Council and is organized, implemented and marketed by municipal staff. Examples: Harvest Festival and Heritage Day Third Party event: An event organized by an outside community group, commercial business or service club which holds a special event permit from the Town of Whitby. These events are further defined by A or B. a. Town Supported Event is a third party event that has been approved by Municipal Council in the budget, is requiring approval and permit by the SEAT (defined below) Team and is supported by municipal staff through in-kind services such as road closures, park booking, and/or marketing support. Example: Artfest or; b. The Town of Whitby holds no financial responsibility and all costs are invoiced to the event organizer Special Event: A one-time, annual or infrequently occurring event on Town of Whitby or private property (including parks, roads/road allowances, parking lots, marina etc.) and not limited to; a festival, walk/run, march, parade or other organized event and may include the following: a celebration of a specific theme, has a predetermined opening and closing date/time live entertainment Food is being given or sold to the general public Alcohol Fireworks Sound amplification The use of electricity Amusement rides Parking lot or road closures Projected attendance over 500 people SEAT (Special Events Advisory Team): A team comprised of town staff representing various municipal divisions, representatives from key stakeholders (DRPS, ems etc.) who meet and review applications to ensure all the necessary permits, permissions and site plans are approved and in place.