Recreation And Sports Insurance FAQ

• At the minimum, recreation and sports businesses need general liability insurance.
• If they have employees they will need workers compensation in most states.
• If they have vehicles registered to the business, or use vehicles for the business purposes, they will also need commercial auto.
• There are also other specialty coverages and endorsements that might be needed based on their operations.

The commercial package policy combines two or more coverage parts. In this arrangement, premium discounts apply but only if property and liability coverages for the same location are provided. Combining coverages on a single policy may not be practical or possible for many operations. However, when possible, every effort should be made to combine as many coverages as possible for convenience, cost savings, and to prevent coverage gaps.

Types Of Recreation And Sports Package Policies:

• Commercial Package Policy (CPP)

Property values range from fairly minimal to hundreds of millions of dollars. Regardless of the values exposed, the exposures in these risks are significant, even in operations with low property values. Most operations will have regular normal periods of unoccupancy and many will be located in difficult-to-access areas.

Some types of business personal property that are more mobile in nature are better covered by inland marine floater forms. Time element coverages are important and both business income and extra expense coverage forms should be reviewed to determine which provides the best coverage for the particular operation.

Types Of Property Coverages:

• Building
• Business Personal Property
• Personal Property of Others
• Improvements and Betterments

Inland marine coverage forms should be compared with property coverage forms to see which is more appropriate for covering the business personal property of a particular recreational operation. The inland marine coverage form is often the preferred form because of the mobile nature of the property or because the property is stored or moved off site when the location is closed for a season.

Always remember to remove items covered by an Inland Marine form from the business personal property schedule to prevent duplicate coverage and duplicate premium.

Types Of Inland Marine Coverages:

• Accounts Receivable Coverage
• Bailee Customers Coverage
• Broadcasting Tower/Equipment Coverage
• Builders Risk Coverage
• Commercial Articles Floaters
• Contractors Equipment Coverage
• Difference in Conditions (DIC) Coverage
• Electronic Data Processing Equipment Coverage
• Fine Arts Coverage
• Scheduled Property Coverage
• Signs Coverage
• Theatrical Property Coverage
• Transportation Coverage
• Valuable Papers and Records Coverage

Many of the risks in this category have enormous money exposures every day they operate. Because of this, losses involving money and securities are the single biggest concern for most recreational facilities. This includes not only holdups and robberies but incidents involving counterfeit currency, computer fraud and forgery as well.

Employee theft is also a major concern in some operations because of attractive types of property or merchandise coupled with high rates of employee turnover.

Types Of Crime Coverages:

• Computer and Funds Transfer Fraud Coverage
• Employee Theft Coverage
• Forgery or Alteration Coverage
• Inside The Premises-Theft of Money and Securities Coverage
• Inside The Premises-Robbery or Safe Burglary of Other Property Coverage
• Money Orders and Counterfeit Money Coverage
• Outside The Premises Coverage

Recreational operations of all kinds must obtain the appropriate licenses and permits to first begin and then to continue operations. In order to obtain and retain the licenses and permits, they must obtain the required surety bonds.

Types Of Surety Coverages:

• License and Permit Bonds
• Miscellaneous Surety Bonds

Recreational facilities have a way of bringing susceptible groups of individuals and situations together that can be potentially dangerous if not properly monitored. The joy and happiness of the moment can quickly change because of a calamity and those calamities can then lead to lawsuits.

Types Of Liability Coverages:

• Commercial General Liability (CGL) Coverage
• Employee Benefits Liability Coverage
• Employment-Related Practices Coverage
• Owners and Contractors Protective (OCP) Liability Coverage
• Special Events Liability Coverage

Recreational facilities may employ medical professionals to provide immediate first aid or other medical attention in case of an accident, and security officers to assist in crowd control. Professional liability coverage is needed in these cases to protect the financial interests of the recreational facility due to mistakes, errors or omissions by these professionals in doing their jobs.

Types Of Errors And Omissions (E&O) Coverages:

• Law Enforcement Liability Coverage
• Miscellaneous Medical Professional Liability Coverage

Automobile exposures for these operations can range from little or none to very complex and involved. For example, some facilities include group transportation from hotels or airports to and from the recreational facility.

Transportation activities that occur within the facility premises may be covered by the commercial auto policy or by the general liability coverage, depending on the type of vehicle involved and the way it is licensed.

There may even be garagekeepers exposures if customers' vehicles are cared for or operated by the business while the customers are using the facility.

Types Of Business Auto Coverages:

• Auto Medical Payments
• Business Auto Coverage
• Collision Coverage
• Comprehensive Coverage
• Garagekeepers Coverage
• Hired & Non-owned Auto Coverage (HNOA)
• Uninsured/Underinsured Motorists Coverage

Employees at recreational facilities may be involved in dangerous operations as they maintain and repair equipment and protect guests visiting the premises. In addition, seasonal employees and high rates of employee turnover lead to an inexperienced work force, which can cause higher accident rates. Workers compensation coverage will pay for the injuries.

Types Of Workers Comp Coverages:

• Excess Workers Compensation Self-Insurance Bonds
• Longshore and Harbor Workers' Compensation Act Coverage
• Stop-Gap or Employers Liability Coverage
• Voluntary Compensation
• Workers Compensation and Employers Liability Coverage

Recreational facilities participants are as varied as the services offered by the facilities. Mixing individuals of varying abilities in large numbers with potentially dangerous activities should encourage any recreational facility owner to purchase high limits of liability through an excess or umbrella policy.

Types Of Excess Liability Coverages:

• Excess Liability Coverage
• Retroactive Excess Liability Coverage
• Umbrella Coverage

Because of the variety of operations, hazards and exposures at recreational facilities, other coverages may be needed from time to time to respond to them. Recreational operations are using drones in creative ways and, as technology improves, will be using them in even more ways. One or more of the following coverages may be needed to fill a particular coverage gap at a specific facility.

Types Of Specialty Coverages:

• Business Legal Expense Coverage
• Cable TV Liability Coverage
• Camp Insurance
• Cyber Liability Coverage
• Data Security Breach Coverage
• Directors and Officers Liability Coverage
• Environmental Impairment Liability Coverage
• Fiduciary Liability (Pension, Welfare and Employee Benefit Funds) Coverage
• Identity Theft Insurance Coverage
• International Insurance Coverage
• Lead Paint Contamination Coverage
• Media/Communications Liability Coverage
• Recreational Trail Liability Coverage
• Risk Retention Group Liability Coverage
• Solar Energy System Coverage
• Tax Liability Coverage
• Underground Storage Tank (UST) Liability Coverage
• Unmanned Aerial Vehicles (UAV) (Drones)
• Weather Coverage