Sports Insurance Blog » each occurrence

http://www.sadlersports.com/blog Sports Insurance Risk Management Advice and Commentary on Current Topics of Interest Tue, 31 Jan 2012 19:13:26 +0000 en hourly 1 http://wordpress.org/?v=3.3.1 Sports Insurance For Sexual Abuse and Molestation http://www.sadlersports.com/blog/index.php/2009/04/01/sports-insurance-for-sexual-abuse-and-molestation/ http://www.sadlersports.com/blog/index.php/2009/04/01/sports-insurance-for-sexual-abuse-and-molestation/#comments Wed, 01 Apr 2009 13:00:40 +0000 admin http://www.sadlersports.com/blog/?p=542

Part Two

Insurance carriers that write General Liability insurance for sports and recreation organizations take two approaches to covering lawsuits alleging sexual abuse and molestation. Some carriers’ policy forms remain silent on the issue of coverage under the theory that it is covered if it is not excluded. This is usually true; however, some state case law may reach a contrary conclusion. However, most policy forms provide an affirmative grant of coverage for sexual abuse and molestation via a special endorsement.

For example, many carriers provide an endorsement that provides sex abuse and molestation coverage in the amount of $1,000,000 Each Occurrence and $1,000,000 Aggregate. Furthermore, the endorsement will usually include a laundry list of exclusions such as for the perpetrator himself, for remaining passive after an incident has come to the attention of management, etc.

Some policy forms may void sexual abuse and molestation coverage if the sports organization has not implemented a written procedure requiring a background check on all staff with access to youth.

In the event that a policyholder is a larger state, regional, or national organization with its own custom program, it needs to be verified whether the Sex Abuse and Molestation Aggregate applies to the entire program or separately to each individual named insured such as a league or club. Obviously, it is best if the Aggregate applies separately to each league or club.

Source: John Sadler

]]> http://www.sadlersports.com/blog/index.php/2009/04/01/sports-insurance-for-sexual-abuse-and-molestation/feed/ 0 Each Occurrence Limit Under Sports General Liability Policies http://www.sadlersports.com/blog/index.php/2009/03/11/each-occurrence-limit-under-sports-general-liability-policies/ http://www.sadlersports.com/blog/index.php/2009/03/11/each-occurrence-limit-under-sports-general-liability-policies/#comments Wed, 11 Mar 2009 13:00:42 +0000 admin http://www.sadlersports.com/blog/?p=417 The each occurrence limit under a General Liability policy for a sports or recreation organization such as a team, league, camp or recreation department should be at least $1,000,000 at a minimum. The limit is expressed as a combined single limit for both bodily injury and property damage liability.

The each occurrence limit is the amount of coverage that will apply to any one occurrence (incident or accident) even if it results in more than one lawsuit. For example, in a bleacher collapse incident involving multiple injuries and lawsuits, the entire $1,000,000 limit would be available to be split between all claimants.

Many facility and field owners now require facility users to provide evidence of a $2,000,000 Each Occurrence limit before they are allowed access. For this reason, a ports or recreation organization may want to consider carrying a $2,000,000 each occurrence limit. If this option is available, the additional cost is normally 20% of the underlying $1,000,000 limit.

If limits higher than $2,000,000 are needed, the best way to accomplish this is to request a quote for an Excess Liability policy which can be purchased in increments of $1,000,000. The minimum premium for each additional $1,000,000 increment will likely be in the $750 to $1,000 range. The actual premium may be higher than the minimum premium depending on the size of your exposure basis. (ex: number of participants or teams).

Source: John Sadler

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