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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
Importance Of General Liability For Sports Teams, Leagues, OrganizationsGeneral Liability for sports organizations protects against covered claims or lawsuits primarily resulting from bodily injury, property damage, personal injury, and advertising injury.
Bodily injury claims generally arise from injuries to sports participants or spectators.
Property damage claims are normally associated with damage to sports facilities or spectator vehicles.
Personal injury lawsuits commonly arise from a slander or libel.
Advertising injury claims may arise from incorrect statements or comparisons about a competing sports program that are contained within promotional materials of a sports organization.
General Liability pays covered legal defense costs and any settlement or adverse jury verdict expenses up to the policy limit.
One of the most important reasons for carrying General Liability is to get coverage for legal defense which of often the most expensive element of sports litigation. It is not uncommon for legal defense costs to exceed $50,000, even in cases where the sports organization is ultimately found to not be negligent.
Source: John Sadler
Copyright 2002-2006, Sadler & Company, Inc., All Rights Reserved
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