Posts Tagged ‘Hold Harmless’

Transfer the Risk of Loss to Others

Don’t bear the responsibility that belongs to others

There are two common situations in which local sports organizations need to be careful to protect themselves from assuming the risk of loss (Ex: bodily injury to a spectator or player and property damage liability) that should fall upon the other party. These situations occur with field/facility owners from whom practice and playing fields are leased and with vendors who provide critical services to the sports organization.

When the negligence of these parties is the cause of injury to a third party, you want them and their insurance carriers to be responsible for providing legal defense and paying any damages. One of the best ways to achieve this result is to make sure that you have a contract in force with them that specifies this outcome. Of course, this simply requires a review of  your lease and vendor services agreements and occasional negotiation of provisions regarding insurance requirements and hold harmless/indemnification.

Below are two articles that provide clear instructions on how to deal with these two situations:

Before You Sign the Sports Facility Lease Agreement

Collect Certificates of Insurance from Your Vendors

Contractual Liability Limitation In Sports General Liability Policies

Standard General Liability policy forms automatically include coverage for many types of contractual liability for injuries to third parties in certain types of hold harmless and indemnification provisions. The Contractual Liability Limitation endorsement can take away needed protection for a sports organization that enters into certain contracts.

For example, a league may send a team to play in a travel tournament and the agreement with the tournament host may include provision that requires the travel team and its administrators to contractually assume all liability for injuries to players during tournament events. This can even cover injuries that are due to the negligence of the tournament host. In the event of a player injury during tournament-hosted entertainment such as a swimming party, the travel team would be contractually responsible for all damages even though liability for such would normally belong to the tournament host. The presence of the Contractual Liability Limitation in this example would likely remove all General Liability coverage for the travel team and may subject its administrators and coaches to personal liability.

The presence of the Contractual Liability Limitation endorsement should be negotiated out of a General Liability policy for a sports organization. If negotiations are not successful, a new carrier should be found upon renewal.