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

What the form is

The CU 21 01, titled "Exclusion - Athletic Or Sports Participants," is an endorsement to the ISO Commercial Liability Umbrella Coverage Form (CU 00 01). Its primary function is to eliminate coverage for bodily injury claims made by individuals who are injured while practicing for or participating in sports or athletic events sponsored by the named insured. Revisions to the form, such as in the 12 19 edition, have clarified that the exclusion applies to injuries "arising out of" such participation, meaning injuries that may become apparent later are still excluded if they originate from the athletic activities. The exclusion can also extend to claims alleging negligent supervision related to these sports activities.

Classes of business it applies to

This endorsement is relevant for a variety of businesses and organizations that might sponsor athletic or sports activities. Real-world examples include:

• Companies that sponsor employee sports teams (e.g., a corporate-sponsored softball or basketball league).
• Educational institutions like schools or colleges that have athletic programs (though specific school-related endorsements like CU 22 21 might also apply).
• Municipalities, community centers, or non-profit organizations that host or sponsor local sports tournaments or athletic events.
• Retail businesses or service providers that might organize promotional sporting events or contests for customers or the public.

Special considerations

• Mandatory Attachment: This endorsement is often considered mandatory by insurers for certain business classifications known to sponsor athletic events, or when the underlying Commercial General Liability (CGL) policy contains a similar athletic participants exclusion (e.g., CG 21 01). This ensures consistency in coverage between the primary and umbrella layers.
• "Arising Out Of" Language: The phrasing "arising out of practicing for or participating in" is broader than "while practicing or participating." It means the injury does not have to occur strictly during the event itself but can be a consequence that manifests later, such as a concussion with delayed symptoms.
• Scheduled Operations: The exclusion typically applies to operations specifically described in the endorsement's schedule or in the policy's classifications. It's crucial to accurately define these sponsored activities.
• Concussion-Related Liability: The evolution of this exclusion has been influenced by the increasing awareness and litigation surrounding long-term injuries like concussions resulting from sports.
• Return to Play Laws: Revisions may also consider the implications of "Return to Play" laws, which impose certain duties on organizations regarding athletes who have sustained concussions.

Key information for agents and underwriters

• Risk Assessment: Underwriters must thoroughly evaluate the insured's exposure related to sponsored sports. This includes the types of sports (contact vs. non-contact), the age and skill level of participants, safety protocols, supervision quality, and any history of sports-related injuries.
• Pricing Implications: The presence of sponsored athletic exposures generally increases liability risk. Attaching the CU 21 01 endorsement helps mitigate this specific risk for the insurer and can influence the premium. If an insured requires coverage for athletic participants, it would necessitate removing this exclusion (if possible) or seeking specialized sports liability coverage, likely at a significant additional premium.
• Coverage Gaps: Agents must clearly communicate the impact of this exclusion to their clients. If CU 21 01 is attached, there will be no umbrella coverage for injuries to participants in the described sponsored sports. This is a significant gap if such activities are a regular part of the insured's operations.
• Underlying Policy Consistency: It is critical for underwriters and agents to ensure that the umbrella policy's stance on athletic participants aligns with the underlying CGL policy. If the CGL excludes this exposure (e.g., via CG 21 01), the CU 21 01 should generally be attached to the umbrella to prevent a situation where the umbrella policy might be expected to "drop down" and cover a loss not covered by the primary layer.
• Review Edition Dates: Always refer to the specific edition date of the CU 21 01 endorsement being used on a policy, as wording and the scope of the exclusion can change over time. The 12 19 edition, for instance, incorporated more precise language regarding latent injuries and supervision.