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AGENTS & BROKERS ONLY |
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Other Sports & Recreation Insurance Programs |
Directors & Officers Liability Insurance For Sports Leagues, AssociationsDirectors & Officers Liability insurance for sports organizations covers certain types of lawsuits that are not covered by the more popular and better known General Liability policy. Whereas the General Liability policy covers certain lawsuits alleging bodily injury, property damage, personal injury, and advertising injury, the Directors & Officers Liability policy typically covers the following types of broad classes of lawsuits:
* Discrimination based on race, sex, age, or handicap.
* Wrongful suspension or termination of league personnel or players.
* Failure to follow own rules or bylaws when making an administrative decision.
* Violation of rights of others under constitutional, federal, or state law.
* Financial mismanagement
The Directors & Officers Liability policy pays covered legal defense costs and pays up to the policy limit in the event of settlement or adverse jury verdict.
Over the past ten years, the types of claims that are potentially covered by the Directors & Officers Liability policy have increased dramatically as the public has become more litigation conscious. The most common categories of lawsuits include handicap discrimination under the Americans With Disability Act ( ADA ), player eligibility disputes, and when league administrators don’t follow their own rules or bylaws when making decisions. We have also seen claims involving breach of contract (usually excluded by most policy forms), race discrimination, violation of expression of religious freedom, failure to make all star team, improper coaching resulting in loss of college scholarship, violation of Sherman Anti Trust / Restraint Of Trade, internal board disputes (usually excluded by most policy forms), injunctive relief to halt tournament due to player eligibility issue (often not covered by most policy forms), etc.
The Directors & Officers policy form varies greatly from one carrier to the next and as a result, a detailed review is required to uncover dangerous exclusions that would take away essential coverages. Unfortunately, most insurance agents are not competent in this area.
Some important policy provisions include employment practices liability and third party liability including discrimination.
Source: John Sadler
Copyright 2002-2006, Sadler & Company, Inc., All Rights Reserved
Insurance Policies Needed By Sports OrganizationsTo follow is a list of the most important insurance policies that may be needed by community based sports organizations such as teams, leagues, and municipal recreation departments:
1. Accident: Pays medical bills on behalf of injured participants such as players and staff.
2. General Liability: responds to lawsuits arising from bodily injury, property damage, personal/advertising injury.
3. Directors & Officers Liability (AKA Trustees Errors & Omissions for municipal recreation departments): Responds to certain lawsuits not covered by General Liability such as discrimination, wrongful suspension or termination, failure to follow your own rules or bylaws, and violation of rights of others under state, federal, or constitutional law.
4. Property / Equipment: Covers your buildings, equipment, and contents against loss due to fire, vandalism, theft, etc.
5. Crime: Covers employee or volunteer embezzlement of funds or theft of property; forgery or alteration of checks by outsiders, and theft of money and securities by outsiders.
6. Workers’ Compensation: May be required by state law if three or more employees and pays benefits to injured workers for “on the job” injuries including medical bills, lost wages, disability lump sums, disfigurement lump sums, and death benefits.
7. Business Auto: Covers liability and physical damage to owned, non owned, and hired autos.
8. Consult with your insurance agent about other types of policies such as Liquor Liability, Cyber Liability, Media, etc.
Copyright 2002-2008, Sadler & Company, Inc.
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Sadler & Company, Inc.
P.O. Box 5866
Columbia, SC 29250-5866
Phone: (800)622-7370 Fax: (803)256-4017
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