Posts Tagged ‘products completed operations’

Products/Completed Operations Limit

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.

Products and Completed Operations

Product liability and other risks you never think about in sports

Sports teams, leagues, camps, and recreation departments need to carry General Liability policies that protect against Products and Completed Operations lawsuit exposures.

Teams & Leagues insuranceProduct liability for sports organizations can arise from the sale of defective products that injures someone away from the premises after control of the product has been relinquished.Common examples include injuries arising from concession sales such as food poisoning or a broken tooth from biting into a hard object hidden in food. Other exposures can result from the sale of fundraising products, team identity items, and pro shop sales.

It’s also possible for a completed operation of a sports organization to result in liability exposure.   An example would be a construction project off premises such as temporary bleachers or a stage that results in injury.

Most sports organizations don’t have a large Product/Completed operations exposure and as a result the minimum recommended limit for the Products/Completed Operations General Aggregate is $1 million.