Commercial Risk Summary Recreation & Sports

Transcription

1 Commercial Risk Summary Recreation & Sports GOLF COURSES Category: Recreation and Sports SIC CODE: 7992 Public Golf Courses 7999 Amusement and Recreation Services NEC NAICS CODE: Golf Courses and Country Clubs All Other Amusement and Recreation Industries Suggested ISO General Liability Codes: 11138, 44069, 44070, 44071, Suggested Workers Compensation Codes: 9016, 9060 Description of operations: Golf courses vary in size and complexity, and may be municipally or privately owned and operated. They can be 18 hole, 9 hole, 3 par, miniature golf and/or a driving range. Longer courses will offer rental carts. Some have snack bars or retail shops, or offer lessons or repair services. Some sponsor tournaments on premises. Property exposure may be very minimal if limited to a clubhouse facility and maintenance shed. If there is a restaurant, pro shop or repair facility, exposures will increase. The distance from public fire protection and fire services is important as many golf courses are located in rural areas. Wiring should be up to date and adequate for the operation. Chemical applications such as insecticide, pesticide, or herbicides used to maintain the grounds may be flammable and should be stored separately from other operations. Machinery and equipment can catch on fire if not properly maintained. If there is a pro shop, theft can be an additional concern. Golf carts can be electrically powered or gasoline powered. If gasoline is used, the fueling operation needs to be separate from other facilities. If carts are electrically powered, they can release flammable hydrogen gas while being recharged. The charging room must be well ventilated. The premises should be protected against unauthorized access after hours. Business income and extra expense will be limited unless significant activities take place indoors. Crime exposure is from employee dishonesty and money and securities. Background checks should be conducted on all employees handling money. An inventory monitoring program should be in place to make sure items are not slipping out the back door. All ordering, billing and reimbursement responsibilities should be separated and records should be reconciled on a regular basis. Annual external audits should be conducted. Inland marine exposure is from accounts receivable, computers, contractor s equipment, and valuable papers and records. Bailees exposure results from the handling of customers' goods, such as those left for service, repair, or while visiting the facility and property left in locker rooms. Golf carts coverage should be considered. Contractors equipment is used to maintain both buildings and the yards. Premises liability exposures are significant due to the number of visitors to the premises. Public safety is a major concern as visitors can be injured by slips, falls, and flying golf balls. Golf carts can overturn or collide with stationary objects. Many courses require customers to sign hold harmless agreements before using the facilities or renting a golf cart. If lessons are offered to children, it is important to conduct background checks on instructors. A driving range should be physically separated from the rest of the facility, with barriers to prevent the balls from flying into roadways and neighboring houses. If tournaments are conducted on premises, additional security may be needed to control crowds. Private golf clubs may have personal injury exposures from discrimination, defamation of character, false arrest, or unlawful detention. Products liability exposure is from the cooking and eating facilities. The pro shop may sell golf equipment and provide repair services. Environmental impairment exposure is due to the use of herbicides and pesticides to maintain the grounds. All individuals who apply chemicals must be appropriately licensed and the product must be

2 Commercial Risk Summary Recreation & Sports used according to directions. Chemicals may leach into surrounding areas, affecting the air, land or groundwater. Batteries from golf carts must be disposed of properly. Automobile liability exposure is generally limited to hired and nonownership for employees running errands. If there is any valet service, limo, transport, pickup, or delivery services, MVRs must be ordered on all drivers. Any owned vehicles must be maintained on a regular basis with all service documented. Workers compensation exposure can be high. If the golf course does its own grounds maintenance and chemical applications, workers can incur cuts, burns, contact dermatitis, or respiratory ailments. Pros and instructors, caddies, and others that may be involved in related positions will have potential for slips, falls, strains, sprains, and being hit by errant golf balls or equipment. Minimum recommended coverage: Building, Business Personal Property, Employee Dishonesty, Money and Securities, Accounts Receivable, Computers, Contractors Equipment, Golf Carts, Valuable Papers and Records, General Liability, Employee Benefits, Environmental Impairment, Umbrella, Hired and Nonownership Auto, Workers Compensation Other coverages to consider: Business Income and Extra Expense, Mobile Equipment, Liquor Liability, Employment-related Practices

3 Agent: The coverages listed below are suggested for consideration for recreation and sports operations. After evaluating each of the listed coverages, check the recommended blank by those that apply specifically to this client. Make sure both the exposure and the coverage are explained to the client. Each coverage and option is explained in the Insurance Coverage Definitions document. Client: For each of the coverages that the agent has recommended, initial whether you have chosen to accept or reject that coverage in the blanks provided. PROPERTY COVERAGES Building and Personal Property Coverage Form Building Business Personal Property Personal Property of Others Improvements and Betterments Condominium Coverage Form Condo-Unit Owners Coverage Commercial Output Policy Building and Personal Property Coinsurance Percentages None 80% 90% 100% Bldg BPP PPO I & B Alternatives to Coinsurance Agreed Value Functional Replacement Cost Peak Season Reporting Form Other Optional Property Coverages Boiler and Machinery Legal Liability

4 Optional Property Endorsements Additional Debris Removal Ordinance or Law Outdoor Trees, Shrubs and Plants Enhancement Replacement Cost Valuation Spoilage Utility Services-Direct Damage Other Property Options TIME ELEMENT COVERAGES Business Income With Extra Expense Coinsurance Percentage Business Income Without Extra Expense Coinsurance Percentage Extra Expense Leasehold Interest Alternatives to Coinsurance Agreed Value Maximum Period of Indemnity Monthly Limit of Indemnity Premium Adjustment Optional Time Element Endorsements Business Income from Dependent Properties Ordinance or Law Increased Period of Restoration Utility Services Other Time Element Coverages

5 PROPERTY AND TIME ELEMENT CAUSES OF LOSS Bldg BPP PPO BI EE Basic Broad Special Earthquake Flood Other Cause of Loss Endorsements INLAND MARINE COVERAGES Accounts Receivable Commercial Articles Contractors Equipment Difference In Conditions DIC Electronic Data Processing Fine Arts Goods in Transit Miscellaneous Signs (Neon and Electric) Valuable Papers and Records Other Inland Marine Coverages

6 CRIME COVERAGES Money, Securities and Other Property Employee Dishonesty Coverage Including Customer s Goods Computer Fraud Coverage Extortion Coverage Forgery or Alterations Coverage Lessees of Safe Deposit Boxes Coverage (Securities and Other Property only) Money and/or Securities Only Theft, Disappearance and Destruction Robbery and Safe Burglary Securities Deposited With Others Coverage Property other than Money and Securities Premises Burglary Premises Theft Robbery and Safe Burglary Other Crime Coverages LIABILITY COVERAGES Commercial General Liability Occurrence Basis Claims- Made Basis Optional Liability Coverages Directors and Officers Employee Benefits

7 Employment- Related Practices Liquor Owners and Contractors Protective Professional/E&O Liability Railroad Protective Special Events Other Liability Coverages COMMERCIAL AUTO COVERAGES Liability Physical Damage Uninsured Motorists Underinsured Motorist Hired Cars Non-Ownership Auto P.I.P./No-Fault Garagekeepers Other Auto Coverages WORKERS COMPENSATION COVERAGES Workers Compensation and Employers Liability Stop Gap or Employers Liability Coverage Federal Employers Liability Act Longshore and Harbor Workers Coverage Voluntary Compensation

8 Other Workers Compensation Endorsements EXCESS LIABILITY COVERAGES Umbrella Policy Excess Liability Policy AVIATION COVERAGES Aircraft Policy Passenger Liability SPECIALTY COVERAGES Environmental Impairment Liability Policy Fiduciary Liability Insurance International/Foreign Operations Insurance Media/Communication Liability Rain or Weather Insurance Terrorism Insurance Underground Storage Tank Liability UST Other BONDS Bid Bond Contract Bond License Bond Other Other Options

9 Comments I certify that I have reviewed my coverage needs in accordance with this checklist with my agent and I have accepted or rejected the recommended coverages as indicated by my initials in the spaces above. Signature of Client Date Title I certify that I have reviewed the coverages outlined in this checklist with my client and that the initials of the client indicate the acceptance or rejection of the coverages recommended. Signature of Agent Date