1. Forms
2. CG
3. CG-21-60

Form CG 21 60: Exclusion – Athletic Or Sports Participants

1. What the form is

The CG 21 60, 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 any individual while they are practicing for or participating in any sports or athletic contest or exhibition that the named insured sponsors. This exclusion applies specifically to the operations of the named insured that are detailed in the Schedule of the endorsement. It's important to note that Medical Payments coverage for these participants is typically already excluded in the standard CGL policy.

2. Classes of business it applies to

This endorsement is relevant for a variety of businesses and organizations that sponsor athletic or sports activities. Examples include:

• Businesses sponsoring company sports teams: A company that sponsors a softball, basketball, or other sports team for its employees or community members. For instance, if a local accounting firm sponsors a community soccer league, this endorsement would likely be attached to their CGL policy.
• Schools and educational institutions: While these entities often have specialized policies, if they rely on a standard CGL for certain sponsored athletic events, this endorsement could be used.
• Non-profit organizations and community groups: Organizations that host or sponsor athletic events, such as a local charity organizing a fundraising 5k run or a community center sponsoring a youth basketball tournament.
• Municipalities or park districts: Entities that sponsor local sports leagues or athletic contests.
• Retail businesses or service providers sponsoring promotional athletic events: A sporting goods store sponsoring a local amateur skateboarding competition, or a fitness center hosting a weightlifting exhibition.

The key factor is the insured's role as a sponsor of the athletic or sports activity. The endorsement specifies that the exclusion applies to operations shown in the Schedule.

3. Special considerations

• Specificity of Operations: The endorsement requires that the specific operations to which the exclusion applies must be shown in the Schedule of the endorsement or in the Declarations. If no entry is made, the information will be shown in the Declarations. This is crucial for clarity on what activities are excluded.
• Participant vs. Spectator: This exclusion specifically targets 'bodily injury' to participants (including those practicing). It generally does not exclude coverage for injuries to spectators at such events, unless another exclusion applies.
• Sponsorship is Key: The exclusion hinges on the named insured sponsoring the event. If the insured is merely a venue provider or has a more passive involvement, the applicability of this endorsement would need careful review.
• Coverage Gaps: Attaching this endorsement creates a significant coverage gap for injuries to athletic participants. Businesses sponsoring athletic events need to be aware of this and consider alternative risk management strategies or specialized insurance (like Participant Accident Insurance) if they wish to provide some level of coverage for injured participants.
• Underlying Coverage: If this endorsement is attached to the primary CGL, a similar exclusion (like CU 21 01 for umbrella policies) should be considered for any excess or umbrella liability policies to ensure consistency and avoid unintended coverage in higher layers.

Real-world example: A local bar sponsors a darts league. If a league member is injured during a tournament game (e.g., slips and falls near the dartboard, or is accidentally hit by a stray dart thrown by another participant), the CG 21 60 endorsement, if attached to the bar's CGL policy, would likely preclude coverage for that participant's bodily injury claim against the bar.

4. Key information for agents and underwriters

• Risk Assessment: The presence of sponsored athletic activities significantly increases the risk of bodily injury claims. Underwriters will carefully evaluate the nature and frequency of such activities, the types of sports involved (contact vs. non-contact), the age and skill level of participants, and the safety measures in place.
• Pricing/Premium Impact: Attaching this exclusion generally results in a premium credit or a lower base premium for the CGL policy, as it removes a specific and potentially significant exposure. The amount of credit would depend on the underwriter's assessment of the excluded risk.
• Coverage Alternatives: Agents should discuss the implications of this exclusion with insureds who sponsor athletic events. This includes exploring options for Participant Accident Insurance or other specialty coverages designed to protect participants, which would be separate from the CGL.
• Underwriting Guidelines: Insurers will have specific underwriting guidelines for risks involving sponsored sports. They may mandate the use of CG 21 60 for certain classes of business or types of sponsored activities. For example, an underwriter might always require this endorsement for a business that sponsors an adult amateur hockey league due to the high risk of injury.
• Clarity in Scheduling: It is critical for agents and underwriters to ensure the "Description of Operations" in the endorsement's Schedule is accurate and comprehensive to clearly define the scope of the exclusion. Vague or incomplete descriptions can lead to coverage disputes.
• Interaction with other policy provisions: While this form excludes bodily injury to participants, it's important to remember that the standard CGL already excludes Medical Payments coverage for those injured while practicing for or participating in athletic events sponsored by the insured. This endorsement reinforces and broadens the exclusion related to Bodily Injury Liability (Coverage A).