Frequently Asked Questions
1. Explain the differences between the various insurance policies such as Medical Expense, General Liability, Directors & Officers Liability, Crime, and Equipment?
The $100,000 Accident Medical Expense policy pays medical bills on behalf of injured participants. The coverage is "excess" which means that other collectable insurance such as parent's health insurance must respond first before the "excess" Medical Expense policy will pay any bills. In the event that there is no existing insurance in force on the injured participant, the "excess" Medical Expense policy become "primary" and pays up to the limit of $100,000 subject to the $50 deductible.
The $1,000,000 General Liability policy protects the sports organization and its people against lawsuits alleging injury to a spectator or player. This policy provides an attorney for your defense and will pay up to the policy limit in the event of settlement or jury verdict.
The $1,000,000 Directors & Officers Liability policy protects the sports organization and its people against lawsuits alleging discrimination based on age, sex, race, or handicap; wrongful suspension or termination of league personnel or players; failure to follow your own rules or by-laws when making a decision; and other similar alleged violations of someone's federal, state, or constitutional rights.
The Crime policy protects a sports organization against a monetary loss caused by theft or embezzlement by its volunteers.
The Equipment policy protects the property of the sports organization such as sports equipment, field maintenance equipment, and small storage sheds against loss caused by perils such as fire, windstorm, theft, vandalism, etc.
2. Is our P.O.N.Y league required to purchase all of the policies including Medical Expense/General Liability, Directors & Officers Liability, Crime, and Equipment?
No, however, we advise the purchase of the General liability/Accident Medical combination. Athletic Participant Liability will not be covered unless the Accident/Medical plan is also purchased. That means that all coaches and players will be excluded from such coverage.
Once the General Liability/Accident Medical policy has been purchased, the other policies may be purchased on an optional basis. Please note that the Directors & Officers Liability is highly advised for your protection
3. Higher Limits, are they available?
Yes, the Medical Expense limit can be increased to $250,000 or $500,000 and the General Liability can be increased with additional limits of $1,000,000, $2,000,000 and $5,000,000.
4. Are leagues required to insure all teams in the organization?
Yes, if it is your intent to apply for the coverage in the name of your league, you are required to pay a premium on behalf of all persons on all teams within your league. The General Liability protects the league and its officers and directors in addition to team volunteers and that is the reason for the requirement. Since the league and all of its directors will be a target in almost every lawsuit, a premium must be collected for all persons on all teams that participated in the league.
5. Is it possible to insure an individual team as opposed to the entire league?
Yes, it is possible to insure an individual team if the insurance is applied for under the name of the individual team. A premium must be paid for all players on the team.
It is not permissible to insure a single team if the application is taken out under the name of the entire league.
We strongly advise that the insurance is taken out in the name of the entire league and a premium is paid for all persons on all teams participating on behalf of the league. The increased likelihood of a volunteer losing everything in a lawsuit is just too high in today’s litigious society.
6. Are the General Liability/Accident Medical policies subject to a minimum premium?
Only the General Liability, is subject to a minimum premium. There is no minimum premium applied to that Accident Medical plan.
7. How long does coverage last?
The General Liability coverage lasts for one year from the effective date for all policies under this program. As a result, if your particular sport has more than one season, a single premium may provide coverage through two seasons.
The Accident Medical coverage is effective when application and premium is received and expires December 31st of the same year.
8. What if new participants are added after we have applied for coverage?
If new participants are added at any time after the original application date, it is required that a new premium be paid on their behalf. This is true even if the new participants are offset by participants who have dropped off the roster. You will receive an Add/Delete Form in your initial coverage packet that can be used for adjusting your participation levels.
9. What if my sports organization only wants to buy Accident insurance and is not interested in General Liability or the other coverage?
Yes, it can be purchased itself; however it is highly advised to purchase the complete package to include general liability protection for your players, coaches and volunteers.
10. Do the insurance policies provide coverage for accidents and lawsuits that arise out of travel to another state?
Yes, coverage is provided anywhere in the United States as long as the event is league sanctioned and adult supervised and not otherwise excluded by the policy.
11. Is coverage provided in the event that our league has several all-star teams that travel and play other teams outside our league?
Yes, coverage is provided for your travel teams playing away from your premises as long as the activity is league sanctioned and adult supervised.
12. What if a single team from outside of our league travels to our league to play a single game?
Coverage is provided for your sports organization for such a competition when a single team from outside your sports organization travels to compete against a team within your sports organization. However, the Accident Medical Expense/General Liability coverage is not extended to protect the players and volunteers from the other team. They may purchase single team coverage to have the same protection as your teams would have.
13. Does the policy provide protection in the event that your sports organization hosts a tournament?
Yes, your sports organization would, however, teams from outside the organization will not have the coverage extended to them. Again, they may purchase single team coverage. Please contact one of our customer service representatives for more information.
14. Is coverage provided if my sports organization conducts a sports camp or clinic?
In the event that such a sports camp or clinic is conducted by your league and only with your league’s participants, this is automatically covered at no additional charge.
On the other hand, if your sports organization conducts a sports camp or clinic and members of the public outside of your sports organization are invited; such activities are not covered by this plan. It is recommended that you visit the Gagliardi Insurance Services, Inc. website or call us directly.
THE APPLICATION PROCESS
15. Once my sports organization applies for coverage, how long does it take for coverage to become effective?
If applying for coverage online through our website, coverage is effective immediately upon receipt of the Email including the online check in the correct amount at Gagliardi Insurance Services. An Email verifying conditional evidence of coverage will be immediately sent back to the applicant.
If applying for coverage by fax, coverage is effective upon receipt of the fully completed application and correct check amount at Gagliardi Insurance Services. When faxing a check, simply make the check payable to Gagliardi Insurance Services in the correct amount, sign it, photocopy it, and fax the photocopy. Please see the other special instructions on our website about how to fax a check. Keep the original check for your records.
If applying for coverage by mail, coverage is effective upon receipt at Gagliardi Insurance Services. Please note that the sole determining factor of the effective date is receipt at Gagliardi Insurance Services and not the postmark date on the envelope.
16. What if I don't know the exact number of players that will be participating prior to applying for coverage?
Very few sports leagues know the exact number of players prior to the application process. It is suggested that you complete the application based on your best guess estimates and pay the appropriate premium amount. Once we have processed your paperwork, we will mail an Add/Delete form that will allow you to adjust your figures after your roster has been finalized. If you initially underestimated the number of players, an additional premium will be owed with the Add/Delete form. On the other hand, if you initially overestimated the number of players, you will receive a refund after forwarding your Add/Delete form to Gagliardi Insurance Services.
17. Can I make my payment online or by credit card?
Yes, a photocopy of the application is required to process and original applications are required for Directors and Officers and the Crime Insurance.
ACCIDENT MEDICAL EXPENSE INSURANCE QUESTIONS
18. Is the Accident/Medical plan on an excess basis?
Yes, the Accident/Medical Expense coverage is "excess" and requires other collectable insurance (such as parent's health insurance) to respond first before the "excess" Accident policy will pay any benefits.
19. If a person who has existing insurance coverage with a HMO or PPO and is filing a claim, is the person required to follow the HMO or PPO rules for obtaining benefits?
Yes, failure to follow the rules for obtaining benefits can result in a reduction of any potential amounts paid under the "excess" Accident/Medical Expense policy.
20. Under this policy, who is covered?
Coverage is provided for all players, coaches, managers, referees/umpires, officials, and volunteers of an insured sports organization. Since 100% participation is required, there is no required submission of a roster.
21. Is travel covered in this policy and if so what type?
To and from practices, games or scheduled event is covered only while supervised by an appointed adult.
GENERAL LIABILITY INSURANCE QUESTIONS
22. Who is covered by the General Liability policy?
General Liability coverage is provided the organization, its officers, directors, all volunteers, players, coaches, managers, scorekeepers, concession workers, field maintenance workers.
23. What league activities are covered?
Coverage is provided for all sanctioned and adult supervised tryouts, practices, games, tournaments and outings.
24. What are some examples of activities or events that are not covered by the General Liability policy?
- Fireworks
- High risk fundraising activities involving amusement devices, animals, or motor sports.
- Events where alcoholic beverages are served where either 1)a charge is made for the alcoholic beverage or 2) a permit or license is required by a governmental entity to be taken out in the name of the sports organization.
- Sports camps & clinics involving participants outside of your sports organization are not covered unless a separate policy is purchased through Gagliardi Insurance Services, Inc.
- If your league owns the premises/facilities or is contractually responsible under a long term lease, you will need to purchase an additional premises liability policy to extend the liability to cover the premise on a 24-hour basis.
25. Lawsuits involving alleged sexual abuse or molestation, is coverage provided?
Yes, is included on a blanket basis with limits of $25,000 per occurrence/$100,000 per team/ league.
DIRECTORS & OFFICERS LIABILITY INSURANCE QUESTIONS
26. What is the difference between the General Liability policy and the Directors and Officers Liability policy?
The two policies protect against a different type of lawsuit. The Directors and Officers policy should not be confused with the General Liability policy, although they cover the same entities: the organization itself, the directors, officers and volunteers.
Primarily, the general liability policy protects against lawsuits alleging negligence by the organization and its people caused “bodily injury” to a spectator or a player. Also, the policy covers other types of lawsuits such as “property damage” and “personal injury” which includes slander and libel.
Conversely, the Directors & Officers Liability policy protects against certain types of lawsuits that are not covered by the General Liability policy. The types of lawsuits that the Directors & Officers Liability policy is meant to cover include when someone's rights have been violated under state, federal or constitutional law or allegations of economic damages. Examples of potentially covered lawsuits under this policy include; wrongful suspension or termination of league personnel or players; a league's failure to follow its own rules or by-laws when making an administrative decision; managerial negligence resulting in bankruptcy for the league; failure to maintain adequate insurance, and discrimination based on race, sex, age, or handicap.
27. Can the Directors & Officers Liability be purchased alone?
It still would be necessary to purchase general liability, since the Directors and Officers liability does not cover “bodily injury, “property damage”, and “personal injury”. For instance, the directors and officers can be sued in the event of an injury to a spectator or player
Your league must purchase the general liability policy in order to obtain the Directors and Officers coverage. The reason for this is that the Directors and Officers liability policy could potentially cover a lawsuit alleging that the board of directors was negligent in failure to purchase General liability or Accident Medical insurance. As a result, the insurance company will not offer the Directors and Officers Liability policy unless such coverage is already in place.
28. How important is it for a P.O.N.Y. League to renew it Directors and Officers Liability policy prior to its expiration date each year?
Very important, since your Directors & Officers Liability is a "claims made" policy, it would be very wise not have a lapse in coverage. A lapse in coverage can result in your protection being voided in the event that an incident that arose in the past does not result in lawsuit papers being filed until after your renewal.