Get it in writing.

When making agreements with vendors, contractors, insurance agents, schools, or conference groups, camp directors or risk managers are advised to "get it in writing."

Defining relationships and responsibilities, as well as the terms of agreements with other parties, are examples of responsible risk management and represent good business practice. In the past, camp directors often did business on a handshake. Some people still have the principles and integrity necessary to conduct business this way. However, many people run to an attorney at the slightest hint of a conflict or disagreement in a business relationship. Under these circumstances, creating a written contract that documents agreements between parties makes sense.

Independent contractors 

Using independent contractors to assist the camp caretaker or to do work beyond the caretaker's ability is very common. Get a written proposal outlining the work that is to be done, timetables for completion, and costs. Likewise, create a contract that establishes the relationship as an independent contractor. This may help avoid confusion at a later date over whether the contractor is truly independent or might be considered an employee.

The contract should require evidence that the contractor carries liability insurance and workers' compensation insurance at least equal to the primary liability insurance limits the camp carries. A certificate of insurance identifying the name of the contractor's business, the name of the insurance agent who placed the coverage, the name of the insurance company issuing the policy, limits of liability, the policy number, and the policy dates is evidence of insurance. This information is critical because, as the property owner, the camp could be held responsible for the actions of the independent contractor. Good risk management practice includes doing business with independent contractors who are financially responsible and carry insurance.

In addition to adequate insurance requirements, your contract should include a request for an additional insured endorsement in the favor of your camp or organization. The contract might also include a request for a hold harmless and indemnity clause to the camp's benefit. Which one of the items is included in your contract depends upon how much work the contractor is doing for you and the size of your contract. You should consult with your insurance advisors and your attorney when developing these contracts and clauses. A little time spent at the beginning of a relationship can save a lot of time, frustration, and money if an injury or property damage occurs.

The consequences of doing business with an independent contractor who does not carry sufficient insurance limits is that the camp may be held responsible for more than its fair share of damages if the contractor's negligent actions result in injury to people or damage to someone else's property. Sometimes contractors who are not financially responsible are the low bidders on contracts and seem to offer attractive solutions for camps that often work with limited resources. Obviously, there is a lot more to the relationship and the transaction than appears in the bid form, and it is vital for successful risk management to get the details and have them clearly defined in writing.

Insurance

Get it in writing applies to your relationships with insurance organizations also. Remember, your insurance policies are legal contracts for the transfer of risk. The policies specify the details of what is and is not included in the transfer. Sometimes the policy (contract) is silent about a certain risk, such as liability for sexual misconduct. Some insurance companies and agents insist that this silence means the risk of liability for sexual misconduct has been included in the coverage of the policy. Good risk management and business practice once again dictates that these assertions be in writing.

If the insurance company is unwilling to change its policy (contract) by endorsement, then coverage for any act of sexual misconduct or other silent risk will depend upon the individual circumstances of the event. Language in the policy may conflict with your expectations and the assertions made by others, and could result in surprises, additional expenses, and uncovered liability. At the very least, when confronted with the above circumstances, secure a letter from the agent or company confirming their position that silence about the risk means that there is coverage for applies to all issues.

Schools and conference groups

Clearly defining relationships with schools and conference groups is a challenge because of the diversity and uniqueness of each group's needs and activities. Generalizations are hard to make under these circumstances.' One of the keys to successfully managing risks with schools and conference groups involves clearly defining each party's risk responsibilities in writing. For example, a camp may operate more like a hotel or caterer when a group comes in with its own instructors, agendas, and chaperones; the camp or conference center staff are not involved with the group's programs or activities. This is perhaps the simplest, most straightforward approach and lends itself to the establishment of standard contracts for these types of rentals. Outside groups should have insurance and evidence of their coverage should be included with your records.

As camp and conference center staff become more involved with a group by providing instruction and supervision for various activities, the respective liabilities for actions and mistakes becomes more complex. Contracts with these groups should be individually negotiated if the group consists of adults. Remember that adults can still sign waivers of liability; laws in many states still recognize that adults can waive their right to sue your organization. These waivers may be enforceable if properly drawn and might reduce your risk. Waivers and releases are generally not enforceable with campers or school children.

Once again, all contracts and documents, such as waivers and releases, should be drawn up by attorneys. Attorneys as well as risk management consultants and insurance advisors are important resources and allies in developing and executing your risk management plans.

Remember to get it in writing so relationships, responsibilities, and obligations are clearly defined. Although it will take more time in the beginning, the extra security that will come from proper risk management practices will be worth the effort.

Ed Schirick is senior vice president of the Markel Insurance Company camp and youth recreation division. He is a charted property casualty underwriter and a certified insurance counselor. Send your risk management inquiries to: Ed Schirick, c/o Markel Insurance Company, 4600 Cox Rd., Glen Allen, VA 23060.