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In my June column I reviewed some of the issues relating to a) chorus liability insurance and, b) incorporating as a not-for-profit organization, as protection against a possible lawsuit. This brief follow-up article explains one chorus' decision after further consultation and investigation. (Note: The account in both articles is based on the author's experience with his own chorus, The Kawartha Male Chorus in the Ontario District.) Opinions DifferIn the first column on this topic, I reported on the differing opinions we received from the lawyers and insurance brokers that we consulted. Following is a section paraphrased from the first article:"We contacted Paul Michael Hassett, the Associated Male Choruses of America's legal counsel and he consulted with an Ontario colleague before giving his opinion. Within the week we had a telephone call from Paul stating that the laws in New York State (where he practices) and Ontario did not to differ on this point - Further ConsultationAfter an internet search and several telephone calls to government offices, we found a federal/provincial development office in a nearby city that offered us a pro bono consultation with a lawyer from a local law firm. We spent a half hour discussing the merits of incorporation, particularly as it relates to liability, with Garry Rishor, QC of the firm "Howell, Fleming LLP". Mr. Rishor was quite definite in his opinion which agreed totally with our AMCA legal counsel, Paul Hassett.He explained clearly the process we would need to follow and recommended that because we wished to incorporate before holding our District Big Sing this October, we should consider incorporating as a "numbered company" which could be accomplished within twenty-four hours. Were we to incorporate under our chorus name, the name search would take a much longer period of time and time was of the essence to us. Since we had neither a Constitution nor By-laws that would become the first order of business, if we made the decision to incorporate. Decision TimeThe three of us who met with Mr. Rishor, weighed all the factors and made the decision that incorporating our chorus would afford our individual members protection of their personal assets. We came to this decision with full awareness of the advice given by the insurance company representatives consulted but decided to accept the advice given by Paul Hassett and Garry Rishor. At risk would be the chorus' assets which amount to about $25,000.00 - a risk that we felt forced to take due to the high cost of insurance. And the insurance premium (around $1,000.00) would need to be paid annually in order to keep the policy in force. Incorporating our chorus will cost about $1,000.00. Had we the means, we would probably have done both - incorporated and taken liability insurance. We could not afford to do that.A side benefit, which is important to us, is that many organizations that make grants available, require as a prerequisite that your group be incorporated. The Trillium Foundation in Canada is one such organization and we have plans to apply for a grant sometime in the future. At our first rehearsal in September we presented our findings to the chorus membership and they agreed unanimously with our recommendation to incorporate as soon as it could be accomplished. We have secured the services of a law firm and are in the process of completing our By-laws. Now that the decision has been made we are relieved and able to concentrate on the planning and organization of our District Big Sing, reasonably confident of our protection should an incident arise.
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