Over the last few weeks, we’ve talked about the different considerations when renting out your common and/or party rooms.  What have we learned?

The first thing to consider is what type of event will be hosted in these rooms and whether alcohol will be served.  If you’ve determined that alcohol will be served, you should ensure that the event organisers obtain the requisite Special Occasion Permit (SOP) from the Alcohol and Gaming Commission of Ontario.

The next thing to consider is whether to rely on your housing corporation’s own insurance and whether to enter into a rental contract that clearly outlines each party’s rights and obligations regarding the rental of your common and/or party room.  While the existence of a contract will not likely absolve you of all liability, it will certainly aid in any defence your insurance company lays out for you.

Risky Business - Spring 2010 Edition

Another option is to require event organisers to purchase their own insurance coverage for their events, commonly known as Special Event Insurance or Social Host Liability Insurance.  For additional information on this type of insurance, visit Elliot Special Risks.

Lastly, it is important to remember that your housing corporation’s insurance policy does not provide coverage to any property or contents belonging to your tenants, guests, event organisers or event attendees.  Event organisers should be made aware of this and it should be spelled out in your rental contract or agreement.  Property belonging to your housing corporation will be covered as long as the property was lost or damaged due to a covered risk.

In our ever-increasingly litigious society, it is important to do everything possible to reduce our exposure to common hazards associated with the shared spaces in our residential buildings.  For more risk management tips, check out our newest edition of Risky Business.