Products / Completed Operations Limit For Sports And Recreation Organizations

Source: sadlersports.com - Products / Completed Operations Limit For Sports And Recreation Organizations
Author: John Sadler

The primary General Liability exposure for most sports and recreation associations and their members is for injuries to spectators and participants. However, another important exposure that needs to be addressed is the lawsuit potential that arises from the sale of products and from completed construction operations at the facility.

The General Aggregate limit is an annual cap on covered “bodily injury” or “property damage” losses that occur on owned or rented premises. On the other hand, the Products / Completed Operations Aggregate limit is an annual cap on covered “bodily injury” and “property damage” losses that occur away from premises owned or rented and that arise out of “your product” or “your work”.

Products that are typically sold by sports organizations include concession foods / drinks, t-shirts, equipment, and fundraising products. On occasion, such products are defective and result in injuries to purchasers and other members of the public. Examples include food poisoning (off premises) and injuries from the sale of sports equipment such as helmets, kayaks, etc.

Work (ex: construction operations) performed by staff or by hired contractors may include the building of sheds, bleachers, fences, and other structures. Such work may initially be on premises owned or rented by the sports organization but the sports organization may later sell the premises or discontinue the lease. Completed construction operations may later result in injuries such as from bleacher collapse, electrocution from faulty wiring, and fire from faulty wiring.

Products / Completed Operations is an important coverage as most sports and recreation organizations do have an exposure for product sales and work.

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