Posts Tagged ‘property’

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.

Damage To Rented Premises

What’s covered and what’s not

Sports and recreation associations and their members often rent or lease premises. Property damage to such premises can occur and can be expensive. It’s important to understand coverage differences between those automatically provided under a standard General Liability policy (under Damage to Premises Rented to You or Fire Damage Legal Liability) and those which must be added by a separate policy endorsement.

The Damage to Premises Rented to You limit (usually $100,000 or $300,000, depending on the carrier) applies to situations where negligence of the organization results in “property damage” to buildings or other structures it leases from a landlord. Such rentals could take the form of a long-term lease for the purposes of office space or storage, short-term rental of a motel room to conduct a seminar or meeting, short-term rental of a gym for practice, or short-term rental of an arena for an athletic competition.

Whether or not coverage applies for property damage liability to the rented premises depends on a number of factors. Examples of these factors are:

  • whether the loss is caused by fire or something else, such as water damage from sprinkler discharge, broken skylight, damaged floor;
  • whether the loss is to rented contents, such as furniture or equipment, in addition to the building; or
  • whether the rental is for a period of seven or fewer consecutive days.

Limits on Rentals of Eight or More Consecutive Days:

  • Applies only to property damage liability to the part of the premises that are rented.
  • Does not apply to property damage liability to contents that are rented along with the premises
  • Only applies to property damage liability caused by fire
  • Does not apply to property damage liability caused by other than fire.*

Limits on Rentals Of 7 Seven or Fewer Consecutive Days:

  • Applies to property damage liability caused by fire to the part of the premises that are rented but not to contents that are rented
  • Applies to property damage liability caused by other than fire for both the premise portion and contents that are rented

In cases where the replacement cost value of the rented premises exceeds the limit of coverage, a higher limit should be requested from the carrier. Alternatively, the lease should be amended with a joint waiver of subrogation provision so that both the landlord and tenant would release each other from liability for damage to the other’s property and depend solely on their own Property insurance.

It’s important to note that the Damage to Premises Rented to You Limit and corresponding coverage only applies to that part of the premises that is the subject matter of the rental. It does not apply to other premises inside the same building that are not being rented or to neighboring buildings. Any damages to such other premises or contents due to the negligence of the tenant would be addressed under the Each Occurrence limit.

*If coverage for this exposure is needed, there are two possible solutions:
  • Add coverage under Commercial Property Policy with Legal Liability Coverage Form Endorsement (CP 00 40 04 02); or
  • amend the lease so that the tenant is not responsible for damage to premises.