A Summary of USOF Insurance Coverage
USOF buys insurance covering itself and its member clubs and their officers, members and volunteers. The annual cost is passed onto member clubs as part of their annual assessment. The following summary of insurance is based on information supplied by USOF's insurance broker, and is probably accurate. However, as with any contract, the rules that matter are in the insurance policy, not in this summary. If the summary is wrong, the words of the policy still control.
What insurance does USOF buy for us? There are four policies. One is a "Commercial General Liability" policy protecting USOF and clubs from liability for bodily injury and property damage. The second is an "Umbrella” policy which increases the dollar limit of coverage over that provided by the underlying liability policy. The third is an “Accident Medical” policy providing secondary coverage to participants at events for major injuries. The fourth is a “Directors and Officers” policy, which protects USOF Officers, Board members and committee members from liability resulting from USOF duties.
How much are we insured for? The liability limits total $5 million, $3 million per occurrence, with $3 million/$1 million under the basic policy, and another $2 million under the umbrella policy. The accident medical policy has a limit of $10,000 per incident with a $1000 deductible. For Directors and Officers, the liability limit is $1 million.
Are there deductibles, the way there are under my automobile policy? The liability policies provide "first dollar" coverage, with no deductibles. The accidental medical policy has a $1000 deductible.
Who is covered? Each club is insured when named in a covered lawsuit for acts committed by members and volunteers working on its behalf. Officers, members and volunteers are also insured when named in a covered lawsuit as a result of club activities. Membership in USOF or a USOF chartered club is not necessary, but only activities customary for USOF and USOF chartered clubs, including organizing and holding orienteering events, are covered.
What is covered? The insurance covers the legal liability arising from the clubs and their members and volunteers with respect to their operations involving the club's covered activities, including any bodily injury and property damage. While "covered activities" are not specifically defined in the insurance policy, the policy is designed to cover the usual and customary activities of a club. All commonly held foot orienteering events are covered, such as foot-O, ski-O, trail-O, mountain bike-O. Clubs and members are also covered for rendering or failure to render health care services by non-professionals, and for the sale of foods and beverages and other products.
What is not covered? Auto liability of any kind is not covered, except for the USOF home office. Specifically, USOF has been unable to obtain what is known as Hired and Non-owned Auto Liability insurance for member clubs. The policies exclude liability for acts of sexual molestation or harassment. Downhill skiing, whitewater rafting and rock climbing are excluded. The policies also exclude, among other things, unusual events such as fireworks, swimming pools, rock concerts, carnival and amusement rides and camps or campgrounds.
My club wants to hire a van or operate a shuttle. What do you mean there is no Auto Liability coverage? Clubs are welcome to purchase their own individual Hired and Non-owned Auto Liability policies through our insurance broker. Although circumstances will vary from club to club, the annual premium is likely to be less than $200 per year. Only club liability is covered. It is presumed that drivers are covered by their own auto insurance. For an insurance application, contact:
Ronda Ashley
Vice President Sports Division
Bollinger Insurance
Ronda.Ashley@BollingerInsurance.com
800-350-8005, ext. 8690
How does the Accident Medical coverage work? If a registered participant at an orienteering event sponsored by USOF or a USOF chartered club incurs a major medical expense and does not otherwise have health insurance coverage, medical expenses up to $10,000 may be covered by USOF’s Accident Medical policy. There is a deductible of $1000, and the insurance is secondary, not primary.
What is the insurance coverage when liquor is served at a club event? The basic rule is that insurance coverage applies for "host liquor liability" when serving or giving alcoholic beverages at functions incidental to the club's activities, provided that the club is not in the business of manufacturing, distributing, selling or serving alcoholic beverages. If the club, or a member, needs a liquor license to serve liquor, there is no coverage under this policy.
Do we have to notify the insurance company of every event? No. Coverage applies without notice to the insurer. However, most land owners require proof of insurance in the form of a certificate of insurance. Some land owners also require an endorsement to be named an Additional Insured on the policy. To obtain a certificate of insurance and/or an “additional insured” endorsement, contact:
Bollinger Insurance
Attn: Chirag Patel
101 JFK Parkway
Short Hills, NJ 07078
E-mail: Chirag.Patel@bollingerinsurance.com
Fax: 973-921-2876
Phone: 800-350-8005, ext. 8184
Suppose I have questions about coverage? Send an email to the USOF Insurance Coordinator Stevan Vaughan <svaughan@fincounsel.com> and he will try to supply an answer. You can also contact our insurance broker directly:
Ronda Ashley
Vice President Sports Division
Bollinger Insurance
Ronda.Ashley@BollingerInsurance.com
800-350-8005, ext. 8690
Ultimately, though, our insurance policies are legal contracts, and are governed by state law. If in doubt, consult with a lawyer knowledgeable about insurance law in your state.
Why is this summary hedged with warnings about reading the policy? Liability and coverage are serious issues managed by a system full of complicated documents and the lawyers who drafted them. No summary can cover every nuance of the policies, or anticipate every set of facts. The policies provide broad coverage. The customary activities of club are covered. So far, these kinds of issues have not proved difficult for orienteering clubs. If you want to follow up, the USOF Office has the insurance policies on file. They are not easy reading.
-- Provided by the VP for Club Services
updated 07/09/2008