to get through the Whispering Pines'
rope course.
If a company owner wanted to take all of its employees to Puerto Rico for a weekend getaway, their business liability insurance would probably provide coverage.
But if that same business owner wanted to take their employees to a ropes course to build teamwork skills or decides to introduce liquor into the activities, then additional coverage might be needed.
It’s a fine line that according to area insurance agents, company owners should be wary of walking alone.
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"As a general statement businesses already have the protection they need to have corporate outings off site," said George Salter, a business development executive at Mastors & Servant, Ltd., an East Greenwich-based insurance company. "Those types of things that may introduce a level of risk, that’s beyond the expectations of an insurance company, might be cause for additional coverage."
According to Salter, a company’s general liability insurance includes corporate outings because its expected that businesses will want to have social gatherings with their employees.
"This is the same type of liability insurance that protects businesses in normal operations," he said. "A company outing is consider part of a normal operation."
But some things may not be. In order to be safe, company owners should talk about any potential plans with their insurance agent said Bob Quigley, vice president at the Preston Agency, a Warwick-based insurance company.
"For the most part companies carry general liability and it basically will cover them," he said. "But they should absolutely check with their agent, just in case it might not."
The line of coverage is especially hazy at events where alcohol is served.
"The question is who is selling the alcohol," Salter said. "If the event is at a banquet facility, then the business is considered a customer and the liability will fall more on the facility."
According to Quigley, the difference comes when a company begins selling alcohol at its function.
"If you aren’t in the business of selling or distributing then you probably don’t need an additional license," he said. "When companies get into the business of charging for liquor then they might need to buy additional coverage."
Companies could also incur additional costs depending on where they hold their functions. For example, the Aldrich Mansion in Warwick requires that companies have a $1 million policy to use their facility.
"We have all of these people using our facility, and we just need to know that we are covered," said Paulette Turcotte, general manager at the mansion. "If there is drinking, they need to have coverage. But it’s not just a matter of drinking, because someone could get hurt regardless."
Quigley said while the $1 million policy is pretty standard for places, it could mean additional coverage is needed for some businesses.
"If a business owner only has $500,000 worth of coverage, then they will need to add some coverage for the day," he said. "Most places will require a certificate of insurance so that they know they are covered."
Group outings to places like a ropes course or a race track are other hazy areas. According to Ann Marie Marcotte, conference coordinator for the Whispering Pines Conference Center in West Greenwich, which has its own rope course, it comes down to who is facilitating the activities.
"When folks come here and they use our ropes, as long as they are using our facilitators, they are covered," she said. "We do have some clients that don’t want to pay the fee for those facilitators and instead will bring their own. That requires $1 million worth of liability insurance. That basically covers us so that we won’t be sued."
Marcotte said 99 percent of the people that use the center’s rope course use their facilitators and as a result, it’s never usually a problem.
While most businesses are covered by liability insurance, if they are not, and something does happen, Salter said the cost can be devastating.
"Typically, when there are claims against a company not covered by a policy, the defense and settlement comes from the company," he said. "So it’s entirely possible that a company can be put out of business."
It’s a risk insurers agree no company should take.
"Businesses need to get the right advice to protect themselves against an injury or accident," Salter said. "That’s the case both in and out of the office."
