1. Forms
2. CG
3. CG-21-00

Exclusion - Athletic or Sports Participants (CG 21 00)

The CG 21 00, formally titled "Exclusion - Athletic or Sports Participants," is an endorsement to the Commercial General Liability (CGL) policy. Its primary purpose is to eliminate coverage for bodily injury sustained by individuals while they are practicing for or participating in any sports or athletic contest or exhibition that is sponsored by the named insured. This means if a person is injured during such an event, the CGL policy with this endorsement attached will not cover those injury claims. It's important to note that medical payments coverage for these participants is typically already excluded in the base CGL policy (like the CG 00 01).

Classes of Business It Applies To

This endorsement is specifically relevant for businesses or organizations that sponsor athletic or sports events. Examples include:

• Schools and Universities: For their interscholastic or intramural sports programs.
• Municipalities and Park Districts: When they sponsor community leagues or sports tournaments (e.g., a city-sponsored softball league).
• Private Sports Clubs or Leagues: Such as youth soccer leagues, amateur athletic associations, or recreational sports clubs that are sponsored by a commercial entity.
• Businesses Hosting Promotional Sporting Events: For instance, a company sponsoring a charity 5k run or a customer appreciation golf tournament.

Essentially, any insured that organizes or sponsors activities where individuals are actively engaged in athletic competition or practice could see this endorsement applied by an underwriter concerned about the inherent risks of such activities.

Special Considerations

There are several important points to consider regarding the CG 21 00:

• Specificity is Key: The endorsement requires that the operations to which it applies be shown on the endorsement itself or in the schedule of classifications. This means it's not a blanket exclusion for all athletic activities unless specified.
• Sponsorship is the Trigger: The exclusion applies to events "sponsored by the named insured." If the insured is merely a venue provider and not a sponsor, the applicability of this exclusion might be debatable, though underwriters may still try to use it if they perceive an increased risk.
• Coverage Gaps: When this endorsement is attached, it creates a significant coverage gap for injuries to participants. The insured organization would then need to consider other risk management techniques or specialized insurance (like Participant Accident Insurance) to address this exposure.
• Distinction from Other Exclusions: It's crucial to differentiate CG 21 00 from other exclusions like CG 21 00 "Exclusion - All Hazards In Connection With A Designated Premises," which has a broader application related to specific locations. While the form codes are similar, their functions are distinct. The Athletic or Sports Participants exclusion is specifically about the activity of sports participation.

Real-world example: A local town sponsors an annual amateur triathlon. If the town's CGL policy includes the CG 21 00 (with the triathlon listed as a sponsored operation), and a participant is injured during the cycling portion of the race, the town's CGL policy would likely not cover that participant's bodily injury claim.

Key Information for Agents and Underwriters

For insurance agents and underwriters, the CG 21 00 presents several practical points:

• Risk Assessment: Underwriters will use this endorsement to manage the higher risk of injury associated with organized sports. The nature of the sport, the age and skill level of participants, safety measures in place, and the insured's loss history will all play a role in the decision to add this endorsement.
• Pricing Implications: Attaching this exclusion may allow the insurer to offer a more favorable premium for the CGL policy, as it carves out a significant exposure. Conversely, if an insured requires coverage for sponsored athletic participants, it will likely necessitate a higher premium or a separate, specialized policy.
• Identifying Coverage Needs: Agents should proactively discuss sports sponsorship activities with their clients. If such activities exist, the agent must explain the implications of this exclusion and explore options for covering the participant injury risk, such as Accident & Health policies or sports-specific liability programs. Failure to address this can lead to significant E&O exposures for the agent.
• Underwriting Guidelines: Underwriters will typically have specific guidelines on when to apply this endorsement. For example, any insured that indicates sponsorship of athletic leagues, teams, or regular sporting competitions will likely trigger its inclusion. The underwriter needs to ensure the "Description of Operations" on the endorsement schedule is clear and accurately reflects the exposure being excluded.
• Alternative to Declination: For insurers, this endorsement can be a tool to write a risk they might otherwise decline due to the athletic exposure. By excluding the specific sports participant risk, the remainder of the insured's general liability exposures can still be covered.

Understanding the function and implications of the CG 21 00 is vital for insurance professionals to properly advise clients and structure appropriate coverage for businesses involved in sponsoring athletic or sports activities.