Coverage most sports and recreation organizations need
The primary General Liability exposure for most sports and recreation associations and their members is for injuries to spectators and participants. However, the lawsuit potential that arises from the sale of products and from completed construction operations at the facility is another significant exposure that needs addressed.
The General Aggregate limit is an annual cap on covered bodily injury or property damage losses that occur on owned or rented premises. But the Products/Completed Operations Aggregate limit is an annual cap on covered bodily injury and property damage losses that occur away from owned or rented premises that arise out of your product or your work.
What this means
Products that are typically sold by sports organizations include concession foods and drinks, T-shirts, equipment, and fundraising products. On occasion, such products are defective and result in injuries to the purchasers or others. Examples include food poisoning and injuries from the sale of sports equipment such as a helmet or kayaks.
Work such as construction operations performed by staff or by hired contractors may include the building of sheds, bleachers, fences, and other structures. Such work may initially be on premises owned or rented by the sports organization that is later sold or the lease terminated. Completed construction operations may later result in injuries from a bleacher collapse or electrocution or fire from faulty wiring.
Since most sports and recreation organizations do have an exposure for product sales and work, Products/Completed Operations is an important coverage.