Demystifying Insurance
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Members of Whitewater Ontario (WO) frequently question why WO has insurance (and why as members they need to pay fees that include insurance coverage). This note tries to clarify the role that insurance plays in our organization, and how it benefits both the members of WO and the organization.

Managing Risk

Insurance is a benefit that few people actually use. Thus its easy to ask why bother, why do we need it, isn’t it just a waste of money?

As an organization, WO and its directors must act in a responsible manner, which includes managing risk. Whitewater paddling involves risk and can result in injury and, in rare cases, death. As a responsible organization WO purchases insurance coverage to protect the organization and its members from catastrophic potential expenses and to ensure that we continue to attract strong volunteers to act on behalf of all paddlers.

Alongside insurance protection, WO maintains and promotes a safety policy (see below) and has specific criteria against which sanctioned events are reviewed (see below) and, where appropriate, formally sanctioned by WO. 

A. What kind of Insurance does WO have?

WO is insured under a Canoe Ontario (CO) group package with two other paddle sport organizations affiliated with Canoe Ontario. The other affiliates are Ontario Canoe Sprint Racing Affiliation (OCSRA) and Ontario Marathon Canoe Racing Affiliation (OMCRA).  Together the four organizations are the named ‘insured party’ in the CO insurance. However, other individuals, such as WO members, are insured as well under some sections of the insurance policies.

CO (and WO) is covered under three types of insurance: Commercial General Liability, Wrongful Acts, and Sport Accident Insurance. Each is described below

1. Commercial General Liability

Commercial General Liability insurance protects the organization of WO and its directors, officers, employees and the members of WO who are participants at WO sanctioned events and activities against civil action claims made by third parties for compensatory damages resulting from bodily injury or property damage. The policy will also respond to a civil suits resulting from a participant who is injured while participating in a WO sanctioned event.

2. Directors and Officers Wrongful Acts

This coverage protects the volunteer directors and officers of WO against a claim alleging that their ‘wrongful acts’ (including errors and omissions) caused a loss or damage. Without this coverage WO would be unable to attract volunteers to run the organization - and our events.   NOTE: the Directors and Officers coverage only extends to the WO board, not WO member clubs.  A separate insurance policy is available to member clubs on an optional basis (please contact Pearson Dunn Insurance Inc. directly to discuss).

3. Sport Accident Insurance

This policy directly benefits all WO members. It provides financial assistance in the event of personal injury (or death) as a result of an accident that occurs while a WO member is paddling during a WO sanctioned event. In the event of an accident, a member can obtain and complete a claim form to make a claim for reimbursement of medical and other expenses caused by the accident.  The limits of reimbursement vary by type of injury and loss.  In the event of a claim the claims adjuster will walk you through the process and eligibility.

B. Insurance only covers WO ‘sanctioned events’ and WO Directors

The WO insurance only covers loss or damage that is caused by an ‘insured’ (WO member) when the insured is involved in or participating at a WO ‘sanctioned event’. A sanctioned event can include ongoing coaching and instructional programs over a season as well as specific events.

During any non-sanction activities or during recreational activities the WO insurance will not respond in the event of a claim or loss. Separate ‘club insurance’ is required to secure parallel protection for club directors and to cover all recreational activities. WO member clubs are eligible for preferred rate recreational club insurance (see 4.0 below, optional club insurance).

C. What is a WO sanctioned activity?

Sanctioning of an event by WO means that the event is formally recognized and acknowledged by WO. The activities to be included in the event for sanctioning purposes are exclusively those described within the terms of WO (Canoe Ontario) insurance policy. This includes normal whitewater paddling activities such as, instructional and coached activities on whitewater and flat-water venues, and competitions (slalom, downriver and freestyle) as well as and directly related activities including awards banquets. [supervised river runs are not currently covered – negotiations  to add these to the scope of sanctioned activities are ongoing with the insurance underwriter]

In order to ensure coverage is applicable, clubs must formally enter into a sanctioning agreement with WO, either for specific events or for their planned programs during the paddling season. WO will review the planned activities to ensure all planned activities fall within the scope of insurance coverage (as defined in the insurance policy) and adhere to the WO safety policy. In cases where some activities may be questionable (for example building a ramp for freestyle moves into water) WO may formally seek an opinion and confirmation of acceptance by the Insurer, prior to sanctioning this specific activity/event.

D. Why doesn’t WO sanction and insure all club activities?

Activities occurring at clubs vary greatly from one club to another.  Some clubs only run instructional programs while others hold cycling trips, golf tournaments and dances including alcohol services to name but a few.  It would be impossible for WO to identify all club activities and properly cover them.  By having the club activities insured under a separate optional policy it allows each club the flexibility to take on non-whitewater activities that are desired by its own membership.

4. Optional club recreational insurance

As noted, some activities including recreational paddling (outside of events and formal training) and unsupervised river runs are NOT covered by the existing WO insurance.

Also Club directors and officers are not covered by the WO Commercial General Liability and Wrongful Acts insurance.

If clubs wish to protect their officials, and to ensure coverage for all recreational activities, they will need a separate Recreational Club Policy. A formal application to the insurer is required detailing the types of activities planned during the paddling season. The insurer will price the coverage accordingly. Clubs will have to purchase this independently. Clubs that have property clubhouse, boat storage and equipment may also wish to have their property and equipment separately insured.

The insurance company providing coverage for CO and WO has developed a special package of optional club insurance specifically for member clubs of CO/WO.

For details and clarification on insurance coverage and to arrange optional club recreational insurance please contact:
Pearson Dunn Insurance Inc.  and ask for the Sports & Recreation Insurance Dept.
1-800-461-5087     www.pearsondunn.com

 

Additional documents to assist clubs in risk management and insurance: