The named insureds under a sports organization’s General Liability policy should include the legal entity itself and its directors, officers, managers, employees, and volunteers.
All of the above mentioned parties are covered by most late edition General Liability policy forms. However, many prior policy forms that are still in use neglect to add coverage for volunteers.
It is of critical importance to correctly list the name of the legal entity for the sports or recreation organization. For example, if the organization is incorporated or is a limited liability company, Inc. or LLC should appear in the name. In other words, the name should be listed exactly as the entity was chartered with the appropriate state governmental office. Failure to correctly list the name of the legal entity could result in coverage denial based on a technicality.
Independent contractors who perform services for your sports organization and are paid on 1099s are not covered under the standard policy forms unless specifically endorsed. However, the sports or recreation organization and other insured persons are covered if the negligent acts of the independent contractor result in a lawsuit against any named insured.