It’s summer! That time of the year when everyone is ready to celebrate and go on holidays. Tourists all across the country and within Western Australia flock to popular spots to relax and enjoy our beautiful state. Unlike locals, visitors don’t always know the things to look out for – the beautiful watering hole that hides rocks and isn’t suitable for diving, the gorge that is a favourite of crocodiles or the walking trails where tiger snakes often sun themselves.
And it’s not just tourist spots like walking trails and watering holes that pose potential risk, but also events such as music festivals, cultural evenings and kids’ fetes that come with a fair share of associated liability concerns. Getting injured by fireworks or trips and falls at a fair are just a few examples.
Every year, members work hard to make their events a success, preparing their tourist spots, and ensuring visitors have a fun and safe experience.
In doing so, members must create a balance between community amenity and the liability exposures that facilities carry. Local governments can safeguard their assets, maintain legal compliance, and manage risks effectively by ensuring that roles, processes, and obligations are clearly defined and executed. The importance of this proper transfer cannot be overstated as this forms part of the foundation of resilient business processes.
At its core, LGIS is all about local governments working together to achieve best outcomes for their organisations, people
and community. LGSAG is one such initiative where we have collaborated with member representatives to ensure they can create a safe and healthy work environment for their workforce when it comes into effect sometime next year.
The Workers’ Compensation & Injury Management Bill 2023, currently before Parliament in Western Australia, will enact major changes to WA’s workers’ compensation scheme
when it comes into effect sometime next year.
The importance of employers following internal policies and procedures and keeping accurate records can’t be emphasised enough when effectively managing a worker’s compensation claim. Our first case explores the need to follow one’s own internal polices in the context of a worker’s compensation work related stress claim.
Event organisation also requires a substantial allocation of resources and involves multiple stakeholders, contractors, and interactions with the public. Due to the interconnected nature of these parties, it is essential for local governments to carefully assess and manage the transfer of risk associated with events.
Risk transfer plays a vital role in effective risk management by defining the responsibilities for different aspects of an activity and potential losses. Local governments should establish their own procedures for addressing complaints, identifying hazards, implementing mitigation measures, and clearly communicating interdependencies. This ensures a comprehensive approach to risk management and facilitates effective coordination among stakeholders.
In relation to government assets where local communities are involved, risk management is paramount to ensure safety. Local government statistics from the last 10 years show the number of liability claims LGIS has received and how this has impacted the Scheme in terms of the cost incurred.
It is essential for local governments to ensure that insurance provisions are included in their contracts for hiring, leasing, and event arrangements with third parties. These provisions should cover public liability and protection for their own property.
In cases where a contractor is held responsible for injuries, property damage, or other claims, their insurance policy should provide coverage for the associated costs. However, without a clear delineation of responsibilities, disputes may arise between the local government authority and the contractor involved, leading to unexpected legal expenses and financial burdens that they believed they were protected against.
It is crucial for contracts and agreements to clearly outline the entity that bears responsibility under specific circumstances. Additionally, local government authorities should establish easily accessible processes to effectively manage situations following a loss. These processes should include promptly notifying all relevant parties about the loss and taking necessary measures to safeguard any remaining asset.
As part of event planning, local governments should create operational plans that include a crucial step known as a risk and contract matrix. This matrix serves to outline the main areas of risk and determine which party is best suited to assume control and manage each specific risk.
While liability insurance is important, it may not always provide sufficient coverage. Liability insurance operates based on the principle of negligence rather than solely focusing on damage. If the security company has taken all reasonable precautions to protect the equipment, it is unlikely that they would be held liable. In some cases, unfortunate circumstances may occur that are beyond anyone’s control. The avenues for recovery may lie in the contract.
Each month we take your questions to one of our LGIS team members to answer.
If you want to submit a question for next issue, email us at [email protected]
Welcome to our last edition of Risk Matters for 2023. We always enjoy an opportunity to catch up with members, and in the last quarter of 2023 there’s been plenty.
It’s summer! That time of the year when everyone is ready to celebrate and go on holidays. Tourists all across the country and within Western Australia flock to popular spots to relax and enjoy our beautiful state.
A woman in her 50s lost her balance and fell while stepping up over a concrete mound within a popular caravan park. She fractured her ankle and held one of our regional members liable for the injury and loss suffered, alleged to have been $190k.
LGIS is the unifying name for the dedicated suite of risk financing and management services for WA local governments, established by the WA Local Government Association in conjunction with JLT Public Sector (part of the Marsh group of companies). LGIS is managed by JLT Public Sector (ABN 69 009 098 864 AFS Licence 226827).
Risk Matters, via this website, is designed to keep members, their staff and elected members informed on topical risk management and insurance issues and LGIS programs and services.
