In fact, many policies purchased to fill this need are ticking time bombs.

Most activities falling into this category are run by non-profit organizations. Two common characteristics of non-profits are they are (1) always strapped for funds and (2) commonly run by volunteers.

While most organizations recognize that as individuals, they may be subject to litigation for one reason or another, whether justified or frivolous, they rarely have the background or even assistance in selecting the best kind of insurance.

Cost is often the driving decision factor, and without the background knowledge of the insurance market, they often make serious purchasing decision errors. A million dollar spectator claims made liability policy is relatively inexpensive and at the same time, almost totally worthless. And yet, in this market, these policies are very common. 

The reason is that very few agencies have access to products specifically designed for these needs. They instead call their surplus lines carriers who will offer a stripped down policy and no one will tell you of the pitfalls.

Two Common Errors

The danger in many policies is contained in two sections of the group liability plan.

1. (1) Watch out for anything defined as a Spectator Policy. That means the neither the volunteers nor the players are covered!

   You're all set if a foul ball breaks someone's mother's nose but you are in deep trouble if the same foul breaks the third baseman's nose.

   You want a policy that is a "Participant" policy.

   
   

2. (2) You do NOT WANT a "Claims Made" liability policy.
   You want a "Per Occurrence" policy.

   Claims made must be renewed every year with the same carrier for protection against claims that come in after the policy year. If you change plans or carriers, you need to play a trail premium to keep that coverage in force for years gone by.

Underlying Accident Coverage

A properly designed liability policy will require an underlying accident policy to cover routine kinds of injuries and medical expenses before they become a legal matter. With no such accident protection, then every injury must invoke the liability policy for coverage.

Secondary vs Primary

A "Secondary" accident policy means that if the injured party is covered by their own or parent's health plan, that will pay first, the the secondary policy will pay toward the uncovered or out of pocket expenses. (such as deductibles, coinsurance, or caps) 

At McBriarty, we represent one of the few companies that understands this market and has designed the appropriate products for it.