Archive for Sports, Fitness & Leisure
Adult Clubs
Amateur Athletic Programs (Colleges and Clubs)
Accidental Death and Dismemberment (AD&D), and medical expense coverages are very important to amateur athletic programs in colleges, universities, and Amateur Athletic Union (AAU) clubs such as track, wrestling, basketball, and other amateur sports activities. Specialists cover National Collegiate Athletic Association (NCAA) programs for sports injuries in larger programs such as football and basketball. Coverage includes high AD&D limits, which covers the participant’s disability if he or she cannot participate in the sport because of a sports-related injury or because of an illness that is discovered such as heart disease. Individual colleges or clubs offer coverage to their participants and may offer significant limits for star athletes headed for professional careers in football, baseball, basketball, or track.
Archery Clubs
Liability coverage on archery clubs through standard markets may not be available. Specialty brokers and general agents can provide general liability, personal and advertising injury liability, and medical expenses for archery clubs. Ancillary lines may also be available but are usually not required.
Athletic Event Cancellation Insurance
Cancelling or postponing a college football game or entire season due to a catastrophic event such as an airplane or vehicle crash or an epidemic such as hepatitis could spell financial disaster for large schools whose entire athletic program depends on football gate receipts and television or radio revenue. International competition, touring track, tennis, and soccer teams could be completely eliminated if there is a tragic accident. The coverage provided is usually for an epidemic, airline crash, or a bus accident. It applies on an “actual loss sustained” basis for any reduction in anticipated income as a result of scheduled games being completely cancelled. Gate receipts, television and radio revenue, advertising income from programs, and sponsoring fees from outside organizations are examples of such income. Limits can apply on a “per-game” basis with an aggregate limit for the entire season.
Billiard Parlors
Billiard parlors and pool halls were trademarks of Main Street America years ago. Today, most standard carriers avoid this class of business because many establishments have substandard conditions, are in the inner city, serve alcohol, permit smoking, and have poor reputations. Insurers that write this class of business provide commercial general liability, liquor liability, and property coverages.
Bingo Halls
Bingo is a popular game of chance throughout the United States and Canada. Bingo was originally played only at church fairs, social gatherings, and at private schools in order to raise funds. Currently, many states have large-scale bingo games that operate several times a week in large halls under the control of state gaming commissions. Gaming laws vary from state to state but many charities sponsor such bingo games. Examples of sponsors are churches, schools, fraternal lodges, and other established charitable organizations. Extremely large bingo games held on Indian reservations are not subject to state laws. The sponsoring organization’s general liability policy may not cover the general liability exposures presented by bingo games at offsite locations because they do not fall within that organization’s normal scope of activities. This carve-out coverage fills that gap in coverage .
Bowling Centers
Bowling is a major recreational activity enjoyed by individuals, families, and groups. Bowling centers can be difficult property exposures to place because standard physical characteristics allow fires to start quickly and spread rapidly. Large, open, undivided areas, unprotected roof supports, large concealed spaces above ceilings and below the alleys, inadequate water supplies, and poor public fire protection in outlying suburbs or remote areas are the primary underwriting concerns. Lacquer, wax, and storage of other solvents add significantly to the fire load. Restaurantnd/or bar exposures can provide the spark that triggers a major loss.
Bungee Jumping Events
Bungee jumping is a popular activity. Participants leap from platforms, bridges, cranes, or hot air balloons attached by flexible rubber or synthetic bungee cords. Businesses engaged in this activity need general liability insurance to cover their liability for the event’s operation, as well as spectator and participant liability. They usually require that participants sign a waiver and release that acknowledges that bungee jumping is dangerous and that the operators are not responsible for anything that happens that is beyond their control.
Campground Owners Liability
Campgrounds that provide overnight camping space and ancillary facilities such as restrooms, showers, and utility hookups for individuals and families are eligible. Most guests sleep in their own tents, campers, or recreational vehicles. However, a campground owner may provide a limited number of overnight rental units. Liability coverage available to private campground owners insures against claims that allege negligence due to conditions on the premises and from incidental operations such as concession sales, restaurants, or fishing ponds and lakes. Property coverage is available for damage to the campground owner’s property due to various perils or causes of loss, including damage by campers and for resulting loss of rental income.
Canoe Trips/River Rafting
Resort hotels, dude ranches, outfitters, and guides may provide water-based activities for their clients/guests. Canoe trips and whitewater or non-whitewater floating and rafting can be a relatively safe water activity. However, it can be extremely dangerous when it involves high water and whitewater rapids. Coverage for this exposure can be added to the hotel or resort policy, be part of a package for licensed guides and outfitters, or be a separate policy for organizations that offer river rafting and canoe trips.
Community Pools & Swim Clubs
Contractual Bonus Insurance
Athletic team owners periodically offer monetary incentives for achievements. These may be for individual players, coaches, and/or the entire teams. An achievement may be getting to the playoffs, being named most valuable player, setting a team or a league record, or similar lofty goals. These achievements are usually quite unpredictable. For this reason, insurance is available to pay out the bonus if and when the condition is met. This coverage is available to athletic teams as well as to advertising firms and corporate sponsors that might enter into similar arrangements with athlete spokespeople.
Country Club Insurance (Private)
Property coverage on private golf and country clubs can be difficult to place because they are located far from public water supplies and paid fire protection. The structures are often frame or joisted masonry construction and have significant values. Special coverage on certain property such as golfmobiles, golf course greens, and coverage for members’ property in lockers is often available from only markets that have specific programs for country clubs. Restaurant and liquor exposures are also often present.
Event Cancellation Insurance
There is a loss of revenue any time an event is cancelled. This insurance covers the revenue lost when an event is cancelled due to a covered peril or cause of loss that occurs. Optional endorsements are available that broaden the covered perils or causes of loss to include nonappearance and closure of the event facility.
Exercise & Physical Fitness Centers
Thousands of men and women spend large sums of money for physical fitness and exercise programs. There are multiple business models. Some facilities offer only very basic services. Others are complex facilities similar to recreational sports clubs and offer additional features such as tanning booths and racquetball and handball courts, in addition to traditional exercise rooms. In most cases, larger facilities present a broader scope of liability exposure and a greater concentration of property values. Insurance programs for health centers include property, liability (including professional and products exposures), locker room legal liability, crime, and umbrella coverages.
Franchise Sponsored Mass Marketing Programs
Insurance agents and/or carriers develop these tailor-made programs to respond to the insurance needs of a specific franchisor or association of franchisees. The franchise’s group bargaining power provides the leverage to obtain better coverage at more reasonable prices. These programs also assure the franchisor that contractual coverages are available to the franchisees.
Fraternal Organizations
Nonprofit fraternal organizations and civic clubs may be insured for their property, liability, and D&O exposures. Examples are the American Legion, Veterans of Foreign Wars, Knights of Columbus, Elks, Moose, and Kiwanis. Employment-related practices liability and liquor liability are optional coverages that also are available.
Golf Courses (Public)
Golf is one of America’s most popular recreational activities and golf courses are where many Americans spend much of their leisure time. Elaborate golf courses and clubhouses are found all over the country and these facilities represent large investments that need commercial insurance protection and risk management programs. A number of property and casualty packages currently available insure a wide range of property and liability exposures. They include specialty coverages such as liquor liability; directors and officers liability; property coverage for tees, greens, and fairways; and environmental impairment liability for application of herbicides and pesticides.
Golf Driving Ranges
There are many different ways to cover stand-alone golf driving ranges. Coverage on buildings, business personal property, and equipment is often written on a replacement cost basis for special causes of loss. Other property that can be covered includes signs, off-premises property, netting, fencing, night-lights, video equipment, and related structures. Loss of income coverage can be included automatically or as a separate coverage. Crime insurance is available. Liability coverage is provided and umbrella or excess limits are available.
Gymnastics Liability
Preparing for athletic events requires endless hours of training. There is potential for significant injuries during both sanctioned events and training. Gymnastics liability covers this exposure. In addition, this coverage protects athletes while they travel to and from events. This coverage is excess over medical coverage that the athletes purchase. Gymnastic clubs or programs, such as those that the YMCA organizes, are eligible for this coverage.
Health Clubs & Gyms
High Performance Boats
Insurance on this class of business is written on broad form marine policies and covers both personal and business-owned vessels capable of attaining speeds of 100 miles per hour or more. Hull and liability coverage is available, including medical payments, personal effects, and uninsured boaters coverage. These policies are issued at agreed value with named operator warranties. Extended land transit coverage and transit and storage coverage options are available, as are extended navigation areas. Boats with either single or multi-hulls are eligible.
Hunting and Fishing Clubs
These clubs own land or lakes stocked with wildlife or game fish. Their facilities are developed and controlled for the exclusive use of members and their guests. Coverage applies to the club’s liability. Underwriters usually evaluate the total acreage, whether it is fenced and posted or not, proximity to traveled roads, whether it is a private club or one owned by an individual or individuals, estimated receipts from game hunting or fishing, and the estimated number of hunting and/or fishing days.
Kart (Go-Kart) Liability
This coverage insures the liability of individual kart owners and karting enthusiasts. The bodily injury and property damage liability coverage provided protects the insured for hazards that arise out of its ownership, maintenance, or use of a kart, including racing, on private property in the United States and Canada.
Miniature Golf
A number of markets that specialize in sports and entertainment risks write insurance for miniature golf operations. Named perils coverage on greens is available in addition to property and liability coverage.
Motor Sports Liability
Coverage for motor sports events encompasses a wide variety of racing activities that take place on drag strips, oval and other types of tracks, and on road racing courses. The coverages needed and available include property, commercial general liability, spectator liability, owner and sponsor liability, and event participant accident coverage. Limits can be substantial.
Motorcycle Insurance
Motorcycles, motor scooters, motor bikes, and similar vehicles are extremely popular. This has led to a corresponding increase in the number of insurance companies that write liability coverages for them. Having these markets available is important because most standard automobile and personal liability policies exclude motorcycles. These policies cover the liability of the owner-operator of such vehicles for bodily injury or property damage to third parties. Most major insurers that specialize in writing insurance on motorcycles have added physical damage coverage for fire-theft-comprehensive and collision, either with liability coverage or separately in some cases. Rates for liability coverage are usually based on cubic centimeters of engine displacement. Uninsured motorists coverage must be added to the liability policy unless the insured rejects it. In addition, some companies offer medical payments and passenger liability coverages as options. Vandalism, theft, and windstorm are especially difficult exposures from the physical damage standpoint.
Mountain Bikes/Dirt Bikes
These motorcycles are adapted for use on mountainous or hilly terrain or cross-country dirt trails. Insurers that specialize in motorcycle coverage usually insure them, but these risks are often more hazardous than motorcycles that operate on relatively smooth public streets, roads, and highways. Policies are rated according to the vehicle’s size and age and the operator’s age. Extreme or highly modified vehicles are usually more difficult to place. These policies cover both the physical damage and liability exposures.
Off–Course and Storage Coverage
Off-course and storage coverage protects competition vehicles from physical damage losses due to fire, theft, trailer upset and other comprehensive losses, and for most other physical damage claims that might occur when the vehicle is not operating under its own power. Other eligible property includes the trailer, spare parts, major tools, and equipment. This coverage is written on a “risks of direct physical loss” basis, subject to policy terms and conditions. It applies whenever the insured property is stored, transported to and from events, and also while it is in parking and garage areas. This coverage does not apply to on-track physical damage or at any time when the scheduled competition vehicle is operating under its own power.
Outfitters and Guides Liability
Outfitters and guides may work with a guest or dude ranch, may operate totally independently, or may be a combination of the two. They use their expertise in the outdoors to help their clients enjoy various types of outdoor adventures. Activities that outfitters and guides may support include hiking, hunting, white water rafting, mountaineering, snowmobiling, horseback riding, and other similar activities. Outfitters and guides may be subject to licensing requirements.
Private Golf & Country Clubs
Golf is one of America’s most popular recreational activities and golf courses are where many Americans spend much of their leisure time. Elaborate golf courses and clubhouses are found all over the country and these facilities represent large investments that need commercial insurance protection and risk management programs. A number of property and casualty packages currently available insure a wide range of property and liability exposures. They include specialty coverages such as liquor liability; directors and officers liability; property coverage for tees, greens, and fairways; and environmental impairment liability for application of herbicides and pesticides.
Professional Athletes
Professional athletes’ disabilities are distressing to the athlete involved and the financial well-being of his or her team. Coverage is available for the athlete as well as for the team. Coverage may be limited to only the team’s superstars or it may apply to all team members. The terms of the athlete’s contract determine what coverage, if any, is available for a particular athlete.
Race Car Drivers (AD&D Coverage)
Race car drivers are in a very hazardous business. This coverage provides accident and health coverage for them. The insurance companies most likely to write this coverage are the same markets that write similar coverage or programs for other professional athletes. Agencies that specialize in motor sports coverage dominate the field for participant medical coverage for the major auto and motorcycle racing associations. Most programs are national in scope and include all types of drivers. Disability limits vary from company to company.
Racetracks: Animals
Horse and greyhound racing are two types of animal racing events. The property exposure is significant due to hay and other combustible materials in barns and stables. Damage caused by animals and caused to animals is also a concern. The liability exposure is similar to other sporting events due to crowd control and bleachers, but animals in close proximity to the public create additional exposures. Many racetracks include betting activities that create significant crime and employee dishonesty exposures. There may be restaurant and liquor liability exposures on the premises.D633
Racetracks: Vehicles
Automobile racing events attract large crowds. This coverage protects the insured track or road course owner and the sponsors that conduct the automobile racing event against third-party claims from spectators that arise from their injuries sustained because of premises hazards. Examples of accidents that cause such injuries are collapse of grandstands and bleachers, contact with racing vehicles, and contact with debris from accidents during practice sessions or the race itself. Coverage does not apply to claims by participating drivers or owners of racing vehicles.
Recreational Clubs Liability
There are as many different types of recreational clubs as there are recreational activities. However, nearly every one involves some element of danger to club members or the general public even when all safety precautions are taken. Common prospects for this coverage include archery clubs, gun, trap, and skeet clubs, hunting and fishing clubs, swim clubs, and skydiving clubs. While certain liability exposures are common to all such risks, each must be underwritten separately and on its own merits.
Recreational Trail Operators Liability
Overcrowding in county and state parks led to opening recreational trails on private land. While many of these are for snowmobiles, trails may also be walking connector trails between state and local park areas or be bicycling or other types of recreational trails. Private landowners may charge a fee for use of trail areas. The persons who operate trails and charge fees assume considerably more legal responsibility than persons who just provide easements or limited access without charging a fee. Liability coverage is available for trail owners and operators for claims made by persons injured while using trails for which a fee is charged.
Riding Academies/Hunt Clubs
Insurers that specialize in writing equestrian liability and horse mortality also write this coverage. Riding academies or schools are especially difficult risks to insure because the participants are often either beginners learning to ride saddle horses or are experienced riders attempting to acquire new skills, such as jumping. Riding academies also stable horses for owners who ride their own horses on occasion but will permit the academy’s owner to use the horses for riding lessons or excursions. The academy’s owner has a care, custody, and control exposure for these horses. The riding academy may also conduct special events, such as rodeos, horse shows, and jumping competitions. These events add a spectator liability hazard.
Rodeos and Horse Shows
Rodeos and horse shows are difficult risks to place from a liability standpoint. As in other events that attract large numbers of spectators, the catastrophe exposure is always present because crowd behavior is difficult to predict and because of the potential for serious injury to many people because of fire, windstorm, or collapse of temporary seating or temporary stages. The ever-present danger of “runaway” wild bulls or bucking broncos in the case of rodeos, roundups, or Wild West shows must be added to these exposures. Coverage is usually written for the specified time period of the show, including parades and other special events to publicize the event. Coverage usually does not apply to injuries suffered by contestants and/or participants.
Shooting Range Liability (Trap and Skeet)
Liability insurance is available for trap, clay pigeon, and related target ranges. Programs are available for public ranges and for private operations that are open to members and member’s guests only. Underwriters require detailed information about the layout of the range and distances from roads or other public areas.
Skateboard Parks Liability
Skateboard parks can be public, private, or admission-paid facilities. Public skateboard parks are often unsupervised. The parks can be indoor or outdoor but all provide a variety of obstacles that can provide challenges and the opportunity to achieve heights while skateboarding. Participant liability is the primary concern due to the age of the participants and the potential for serious injuries due to heights and jumps. Parks that organize competitive events need additional coverages.
Skating Centers (Roller and Ice)
Skating rinks, like other public places of amusement such as amusement parks, ballparks, ski areas, and swimming pools present serious liability exposures due to injuries to participants and spectators. The property exposures are also significant due to large open areas and the equipment needed to maintain the rinks.
Ski Operations
Skiing is a dangerous sport. Individual skiers are primarily responsible for their own safety but court decisions have placed some of the responsibility on commercial ski operations. In particular, the ski operator is responsible for safe transit on lifts up the mountain, while the skier is responsible for his or her own descent. Operators’ responsibilities also include maintaining slopes and trails. Other liability exposures are premises liability in lodges, shops, and restaurants. In addition, ski patrols and ski instructors present significant workers compensation exposures. Property exposures are also a concern because of cooking and ski repair exposures combined with very limited public fire protection.
Snowmobiles (Commercial and Rental)
Snowmobiles are owned and operated by many entities in the northern states. They may be used by commercial and governmental entities to provide important services. Some commercial enterprises, such as resorts, trail operators or snowmobile dealerships, may rent out snowmobiles for recreational purposes. Snowmobile racing, derbies, safaris, and rallies are very popular and are sponsored by local snowmobile clubs. Liability insurance is available to cover the sponsor’s responsibilities to spectators and other parties at these special events.
Snowmobiles (Personal Use)
Homeowners policies exclude physical damage and liability coverage on owned snowmobiles. Some coverage is available by endorsing an existing homeowners policy. However, broader coverage may be needed that only a stand-alone snowmobile policy can provide.
Sport Fishing Boats
Sport fishing boats are available for hire to parties who go deep sea fishing for game fish such as tuna, marlin, swordfish, or sharks. Property and liability insurance is needed for the hull, passengers, and the crew. Insurance carriers that specialize in marine insurance coverages provide such protection. Coverage is available in warm water areas such as off the coasts of Mexico, Hawaii, the West Indies, the Bahamas, as well as off the Atlantic and Pacific coasts of the U.S. and the Gulf of Mexico.
Sports Camps
Sports camps are popular places for young boys and girls to go to learn basic and advanced skills of tennis, baseball, basketball, football, soccer, and other individual or team sports. Liability coverage, including abuse and molestation, is an important coverage for the camp director and staff. Accidental death and dismemberment and accident medical expense coverage is often considered mandatory for campers.
Summer Camps
Insurance coverage on summer camps is usually written on an account basis. Property coverage on buildings, contents and service equipment, commercial general liability, auto liability, and special campers’ accident and sickness coverages are written. High liability limits are recommended and tuition fees, extra expense, and theft insurance should be considered. Medical expense, accident insurance, and tuition refund coverage is available to reimburse the camp owner or operator for medical expenses incurred because of sickness, accident, or death of campers or individual or group withdrawal because of epidemic, flood, or other stated reasons. Abuse and molestation coverage should also be obtained.
Summer Recreational Activities
The Insurance Marketplace lists a number of specific summer recreational activities but a few may be omitted. This category may apply if a specific summer activity or function is not listed elsewhere. These markets provide coverage for a variety of summer recreational exposures:
Team Sports Medical Accident Coverage
This group coverage involves medical accident expense and accidental death and dismemberment (AD&D) insurance for youth and young adult teams sponsored by youth organizations, churches, recreation clubs, or businesses. Baseball, softball, soccer, basketball, hockey, or just about any team sport can be covered. The attachment point for coverage varies by program. It may be primary, excess, or participate with the individual’s other coverage.
Tennis and Racquetball Centers (Indoor)
Indoor tennis establishments have significant property values because of the size of the building required to accommodate the sport. These property assets need to be covered. Other needed coverages are loss of business income and general liability. Some insurers have developed package policy programs that cover property and liability hazards for free-standing buildings or tennis centers that are located in other facilities. Air-supported structures that can be taken down in warmer weather are more difficult to place.
Upscale City & Social Clubs
Water Parks Insurance
Water parks are water-oriented amusement parks. A water park may be a stand-alone park or be part of a municipal park or a for-profit amusement park. They may include water slides, water tunnels, swimming pools, wave pools, artificial rivers, and other attractions.
Winter Recreational Activities
The Insurance Marketplace lists a number of specific winter recreational activities but a few may be omitted. This category applies when a specific winter activity or function is not listed elsewhere.
Youth Sports Programs–Accidental Death and Disability
Many different organizations, such as the Boy Scouts, Girl Scouts, CYO organizations, Little League, churches, Boys and Girls Clubs, PAL clubs, and schools sponsor youth sports activities. Most liability coverage forms and policies written on such organizations exclude bodily injury to the sports participants. Special group policies partially fill this gap by covering accidental death, disfigurement, disability, and medical coverage for injured youth. Coverage is written on a group basis based on a premium charge for each participant.