Chapter 11. Risk Management and Legal Liability
11.6 Conclusion
Risk management in tourism and hospitality is complex, involving aspects of adhering to statutory requirements, taking steps to ensure occupational health and safety requirements are met, and undertaking an analytical approach to mitigating potential liabilities. Most of the actions required need to be proactive by the operators; failing to do so may result in negative impacts to reputation, damage to property, fines, lawsuits, or in the most tragic result — injury to guests or employees. Companies not only have a moral and ethical responsibility to practise effective risk management, failing to do so can result in financial ruin and the cessation of operations.
This chapter reviewed an important consideration for tourism and hospitality professionals. Chapter 12 addresses another key component of the industry in BC, Indigenous Tourism.
Key Terms
- Breach in the standard of care: failure of the defendant to work to the recognized standard
- Capacity: the ability of a person to enter into a legal agreement; depends on the age and mental state of the person (among other factors)
- Causation: a strong link between the actions of the defendant and the injury to the plaintiff
- Commercial general liability insurance: the most common type of liability insurance that provides coverage for litigation; generally, legal costs and personal injury settlements arising from a lawsuit are covered
- Consideration: the value exchanged between parties in the contract (money, services, or waiving legal rights)
- Duty to care: the relationship between the plaintiff and defendant (monetary, supervisory, custodial, or otherwise) that requires a responsibility on behalf of one party to care for the other
- Employment Standards Act: defines legal requirements around employment such as minimum wage, breaks, meal times, vacation pay, statutory holidays, age of employment, and leave from work
- Exposure avoidance: a risk control technique that avoids any exposure to that particular risk
- Hotel Guest Registration Act: requires hotel keepers to register guests appropriately, which includes noting a guest’s arrival and departure dates, home address, and type and licence number of any vehicle
- Hotel Keepers Act: allows an accommodation provider to place a lien on guest property for unpaid bills, limits the liability of the hotel keeper when guest property is stolen and/or damaged, and gives the provider authority to require guests to leave in the event of a disturbance
- Inherent risk: risk that is inherent to the activity and that cannot be removed
- Injury: proof the plaintiff did in fact receive an injury resulting in damage; can be bodily injury or property damage
- Intentional torts: assault, battery, trespass, false imprisonment, nuisance, and defamation
- Liquor Control and Licensing Act: defines the ways in which alcohol can be made, imported, purchased, and consumed in BC
- Liquor Control and Licensing