Don’t rely on certificates, brochures, or proposals
Many sports team and league administrators hope or believe that they have adequate protection under their Accident and General Liability policies. They usually place their trust in their local insurance agent or even a so-called sports insurance specialist. Some that have their insurance provided by their municipal recreation department may rely on their risk manager. But, how do they know for sure that their insurance is adequate to protect against some of the most common types of devastating lawsuits?
Sports and recreation administrators often rely on a simple review of the wrong types of documents. It is a mistake for a sports administrator to depend on the review of a certificate of insurance, brochure, or proposal from an insurance agent. None of these documents contain complete details on all policy coverages, definitions, conditions, and exclusions. Dangerous exclusions which take away coverage are often hidden in the fine print.
For example, a certificate of insurance may disclose that a General Liability policy contains a limit of $1 million. However, that same policy may have an exclusion for Athletic Participants. The certificate of insurance will not necessarily disclose the existence of this devastating exclusion which has a huge bearing on protection.
The only source for finding the answers on coverage is the actual insurance policies themselves. The problem is that the polices can be exhaustive to review. A typical Accident policy may be 70 pages long and a typical General Liability policy may be 90 pages long.