Business Auto Insurance for Sports & Recreation Organizations

Business Auto insurance is also known as Commercial Auto insurance.

Business auto covers liability arising from the ownership and use of vehicles that are owned, non owned, or hired by the sports & recreation organization. It can also cover physical damage (comprehensive and collision) to the vehicle itself.

Business Auto claims can be frequent fender benders or can be severe with extreme injuries and/or deaths to multiple drivers/passengers.

Owned Autos

Sports and recreation organization that own vehicles need to purchase Auto Liability, Uninsured Motorists, Underinsured Motorists, and Physical Damage Coverage. In addition, state laws may require the purchase of additional coverages such as Personal Injury Protection. Since auto accidents can result in severe injuries to multiple passengers, a liability limit of at least $1,000,000 combined single limits for bodily injury and property damage is a must.

Non-owned and Hired Autos

Most sports and rec organizations don’t own their own vehicles, but they still have exposure to lawsuit from non owned vehicles that are owned by employees or volunteers who run errands or travel while conducting organization duties. When such trips result in accidents and related liability, the organization has vicarious liability for the acts of its employees and volunteers. Also, many organizations rent vehicles from rental car companies or borrow vehicles from other organizations or churches or schools. Both of these exposures can be covered by Non Owned And Hired Auto Liability. This special coverage can often be added to a General Liability policy by endorsement. When vehicles are hired from a rental car company, the organization can also purchase Hired Car Physical Damage to cover damage to the vehicle itself.

Dealing with Rental Car Companies

Whenever renting a vehicle from a rental car company, it is always a tricky and complicated issue as to whether or not to buy liability insurance and collision damage waiver from the rental car company. Such coverages are expensive and are often limited in scope. The alternative is for an organization to rely on its own Non Owned And Hired Auto Liability and Hired Car Physical Damage. However, such a strategy has its own weaknesses. And then throw in what coverage may be available from the credit card company or from the driver’s Personal Auto carrier. We have written an article, Simplifying Rental Vehicle Insurance, that will walk our clients through this complex decision making process.

Dangers of 15-passenger vans

The use of 15-passenger vans to transport sports participants is risky business due to the documented tip over propensity of such vehicles. Some carriers have exclusions for the use of 15-passenger vans under their Non Owned And Hired Auto Liability. It is safest to never use 15-passenger vans. We have written a risk management report on this topic entitled  12- and 15-Passenger Vans.

Charter Buses

 Another topic that often arises is how to hire a charter bus service and make sure that the risk of injury is contractually transferred to such charter company. It pays to research the safety record of the charter bus service before hire and to make sure that they can provide evidence of adequate liability insurance. We invite you to read our article on this topic, Are Athletes At Risk In Charter Busses?

Business Auto Insurance Carriers Offered by Sadler Sports & Recreation

• Hartford
• Travelers
• National Casualty
• Zurich
• CNA
• and many more

 How to Get a Quote

 We typically only write Business Auto in conjunction with Accident and General Liability. Visit our home page to find the type of sports or recreation organization that describes your operations as Non Owned And Hired Auto Liability may be part of the offering. If you own vehicles, please complete the contact us form or call us at 800-622-7370 to indicate your interest in a quote.

We have many articles we invite you to read for more information on Business Auto insurance.