1. Forms
2. CG
3. CG-21-01

What the Form Is

The CG 21 01, titled "Exclusion – Athletic Or Sports Participants," is an endorsement used with the Commercial General Liability (CGL) Coverage Part. Its primary function is to remove coverage for bodily injury sustained by individuals while they are practicing for or participating in any sports or athletic events that are sponsored by the named insured. This exclusion also applies to Medical Payments coverage for such participants. The specific athletic or sports operations being excluded must be clearly described in the Schedule section of the endorsement or in the policy Declarations.

Classes of Business It Applies To

This endorsement is typically applied to insureds that sponsor or organize athletic or sports activities, where the risk of injury to participants is inherent. Examples include:

• Businesses sponsoring employee sports teams (e.g., a company softball league).
• Schools or educational institutions with athletic programs (though they often have specialized policies).
• Municipalities or park districts that organize community sports leagues or events.
• Private clubs or associations that host sports tournaments or activities.
• Fitness centers or gyms that sponsor competitive events or specialized training classes that could be deemed athletic contests.

Special Considerations

• Scheduling is Crucial: It is essential that the "Description of Operations" in the Schedule is completed accurately and comprehensively. If an operation is not listed, the exclusion may not apply to that specific activity, potentially leading to unintended coverage.
• Participant vs. Spectator: This exclusion specifically targets participants. Injuries to spectators would generally still be covered under the CGL, assuming no other exclusions apply.
• Medical Payments: The endorsement reinforces the exclusion of Medical Payments (Coverage C) for athletic participants, which is often already a standard exclusion within the CGL form itself for individuals injured while taking part in athletic events.
• Coverage Buy-Back: While this endorsement excludes coverage, some insureds might seek to obtain coverage for athletic participants through specialized sports liability policies or, less commonly, a specific buy-back of this exclusion, which would require specific underwriting approval and likely additional premium.

Key Information for Agents and Underwriters

• Risk Identification: Agents must diligently inquire about any sports or athletic activities sponsored by the insured. This includes occasional events, not just regular leagues.
• Underwriting Rationale: Underwriters use this endorsement to manage the significant and specialized risk associated with athletic participation. Injuries in sports are common and can be severe, falling outside the scope of typical commercial general liability exposures intended to be covered by a standard CGL policy.
• Alternative Coverage: For organizations whose primary purpose involves athletics (e.g., sports leagues, professional teams), a standard CGL with this exclusion is insufficient. They require specialized sports liability insurance tailored to their unique exposures.
• Premium Considerations: The application of this exclusion typically means the insurer is not charging a premium for the excluded exposure. If an insured requires coverage for sponsored athletic participants, it must be specifically negotiated and priced, likely under a separate policy or endorsement.
• Clarity of Intent: Ensure the insured understands the scope of this exclusion. If they sponsor multiple types of athletic events, each should be considered for scheduling on the endorsement to avoid ambiguity.