Liability

  • Who is insured under the Sport Liability policy?
    • Directors, Executives, Employees, Managers, Coaches, Trainers, Officials, Referees, Members of Organization, Volunteers
  • Is abuse or harassment coverage available?
    • Yes, it is currently available to National and Provincial sport organizations that have proper harassment policies & procedures in place.
  • Is there territorial limitations to the coverage?
    • The policy provides coverage Worldwide for Canadian residents.
  • Does your policy cover injury to sport participants?
    • Yes, our cover includes liability for participant and spectator injury in addition to incidental medical malpractice, which is vital for sports and leisure risks.

Directors & Officers

  • What is the difference between a director and officer?
    • Directors are elected or appointed volunteers. Officers are usually directors that are appointed for specific functions such as President, Secretary or Treasurer. Staff can also be Officers
  • What is the purpose and duties of a Board of Directors?
    • Purpose of the Board is to provide leadership and direction for the organization. Directors & Officers have three basic fiduciary duties to the non-profit association:
      • Obedience – must comply with federal and provincial laws and act within the constitution and bylaws of the association
      • Loyalty – must act in good faith and must not allow their personal interests to prevail over the interests of the association
      • Diligence – must be diligent and prudent in managing the association’s affairs and possess a duty of care that an ordinary prudent person would use under similar circumstances
  • What is the difference between General Liability Insurance and a Directors & Officers (D&O) Insurance?
    • General Liability Insurance: Provides coverage for “negligent acts”. Directors & Officers Insurance: Provides coverage for “intentional acts” with protection against a breach of a “duty” by the directors or officers.
  • Specifically, what does D&O Insurance cover?
    • A D&O policy pays for actual or alleged decisions – “wrongful acts” usually defined as “any actual or alleged act or omission, error, misstatement, or misleading statement, neglect or breach of duty by and Insured”
  • How can D&O claims be avoided?
    • Many lawsuits could be avoided, or at least dismissed, in the early stages of a lawsuit if the association simply follows its own constitution and bylaws. Even outdated bylaws must be followed.

Accident

  • Why would a sports association purchase Sport Accident coverage?
    • As a member benefit. Coverage is on a “no fault” basis and is in excess of Provincial plans and employee benefits programs.
  • Can loss of wages be claimed for under this policy?
    • No, only medical costs are paid.
  • All provinces have their own distinct plan / benefits. How does Allsport deal with this?
    • We use the same insurance wording but would make different payments based on the coverages and limits on each provincial plan.

Claims

  • Why are legal costs increasing?
    • Legal costs are one half of all claim payouts.

Increased participation:

  • More income being spent on leisure products
  • Increased awareness of healthy lifestyle
  • Aerobic fitness boom in past 10 years.

Changed attitudes:

  • “It’s not my fault”
  • Someone else is responsible for my injury.

Influence of the media:

  • Increased exposure to high risk activities
  • Media reporting of sensational legal settlements
  • TV shows dramatize “backroom” negotiations

The American Experience:

  • Very litigious society

Increased awareness of liability and legal rights:

  • Built in expectations
  • Accidents view as breaches
  • More people turning to courts to right a wrong

More lawyers

Increased number & amount of settlements:

  • More activities lead to more accidents
  • More accidents lead to more lawsuits
  • More lawsuits lead to chance of larger settlement

Presence of Insurance:

  • Large insurance companies paying the award; not the coach or association