Posts Tagged ‘personal injury’

Insurance Policies Needed by Sports Organizations

The minimum needed for maximum benefit

Because many sports organizations are run by volunteers, they are often under-insured. Insufficient insurance coverage may be a by-product of money-saving efforts or simply a matter of not understanding the risks of exposure to the athletes, coaches, staff and volunteers, and board members

Below 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 lawsuitSports orginizationss 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.

We provide more detailed information on each of these policy types and insider tips on purchasing insurance in our article, 7 Critical Mistakes to Avoid When Buying Sports Insurance. If you have questions or want assistance in deciding which policies your organization needs, call us at (800) 622-7370.

Copyright 2002-20014, Sadler & Company, Inc.

Personal And Advertising Injury Exposures

Coverage sports organizations may think they don’t need

Sports organizations such as teams, leagues, and recreation departments have definite personal and advertising injury exposures Personal and advertising injury insurancewhich should be covered under a General Liability policy.

Personal injury is defined as a certain types of slander, libel, invasion of privacy, and false imprisonment.  A typical personal injury example in the sports context would be if a a slanderous statement is made about a coach, umpire, or parent arising out of the heat of competition.

Advertising injury is defined as certain misleading statements or infringement of intellectual property rights in advertisements.  An example is if a sport organization makes a misleading statement about a competing sports organization in its player recruitment advertising materials.

Importance of a General Liability Policy

Why all sports teams, leagues and organizations need one

General 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 2002-2014, Sadler & Co., Inc.  All rights reserved.