|Am I buying the right type of General Liability Insurance?|
|Minimum Recommended Limits|
· Occurrence vs. Claims Made – It is important to understand the distinction in youth sports. it is possible that a child who was injured at the age of 6 can wait until the age of 20 before filing a lawsuit. If your league purchases an “Occurrence” policy during the year of the injury, you would have protection even if the policy is not renewed in later years. You should avoid a “Claims Made” policy which may only protect during the policy period. (or a renewal thereof) was in force both when the injury occurred and when the claim or lawsuit was filed (which could be 14 years later). Obviously, “Claims Made” coverage is extremely risky as it is highly unlikely that a league would renew a policy with the exact same insurance company for 14 years in a row.
· Participant Injury Liability – Avoid policies that don’t cover lawsuits arising out of injury to your sports participants. Some policies only cover lawsuits arising out of injuries to spectators.
· Punitive Damages – Almost every lawsuit that is ever filed will allege that your volunteers have engaged in “grossly negligent behavior that is willful, wanton, and reckless” and will ask for punitive damages in order to provide extra punishment.
· Covered Persons – Your policy should cover your sports organization, its directors, officers, employees, and all volunteers. Also, coverage should include liability for field owners and sponsors in the event. Avoid policies that don’t cover all persons and entities mentioned above.
· Special Coverage – Sports Organizations That Own Their Own Facilities or Are Under a Long-Term Lease – Sports Organizations that fall under this situation are responsible for what happens on their fields/facilities 24 hours a day, 365 days a year. Most General Liability policies only cover lawsuits arising out of sanctioned and supervised activities. Such policies would not cover lawsuits arising out of injuries that occur on your premises after hours or during the off season. This loophole should be closed by paying an additional charge to have this coverage added to your policy.
For all Sport Team, League, Association, Club and Clinic needs o2 can insure you. We offer customized insurance policies for short-term or annual insurance policies depending on your specific needs.