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3. CU-34-10

What the form is

The CU 34 10 Exclusion – Athletic Or Sports Participants – All Contests Or Exhibitions is an endorsement used with Commercial Umbrella or Excess Liability policies. Its primary purpose is to exclude coverage for liability claims arising from 'bodily injury' sustained by individuals while they are practicing for or participating in any sports or athletic contest or exhibition that is specifically listed in the Schedule of the endorsement. A key feature of this endorsement is that the exclusion applies to any operation listed in the Schedule, irrespective of whether the named insured is the sponsor of the event. This form is designed to follow the provisions of the new underlying Commercial General Liability (CGL) endorsement CG 21 01, which has a similar title and intent.

Classes of business it applies to

This endorsement is relevant for a variety of insureds whose operations might involve athletic or sports activities, even if those activities are not directly organized or sponsored by the insured. Examples include:

• Municipalities or private owners of parks, fields, or recreational facilities that are used for sports leagues or events.
• Organizations that lease their premises to others for athletic contests or exhibitions.
• Businesses that host promotional events which might include some form of athletic competition.
• While colleges or schools have a specific endorsement (CU 22 21 mentioned in relation to sports), this endorsement could potentially apply in other scenarios involving educational institutions if specified.

For instance, if a town allows a local soccer league to use its public park and this endorsement is attached with the park listed as the 'operation', any bodily injury to a soccer player during a game would likely be excluded under the town's umbrella/excess policy.

Special considerations

• Specificity of Schedule: It is crucial that the Schedule in the endorsement clearly and accurately describes the specific sports or athletic contests or exhibitions to which the exclusion applies. Ambiguity could lead to coverage disputes.
• Coverage Restriction: This endorsement represents a coverage restriction, particularly for events not sponsored by the insured, which might otherwise have been covered depending on the policy's base wording.
• Underlying Coverage: The endorsement is intended to align with similar exclusions in the underlying CGL policy, such as CG 21 01. It's important to ensure consistency between the primary and excess/umbrella layers regarding this exposure.
• Not for all athletic exposures: This endorsement applies to scheduled operations. It does not necessarily exclude all athletic-related injuries that could occur on an insured's premises if they are not part of a scheduled contest or exhibition listed.

Key information for agents and underwriters

• Risk Assessment: Underwriters should carefully assess the athletic and sports exposures of the insured. If significant, non-sponsored athletic events occur on the insured's premises or as part of their operations, this endorsement can be a tool to manage that risk.
• Agent's Role: Agents must clearly explain the impact of this exclusion to the insured, ensuring they understand which activities will no longer be covered. If the insured has significant exposure they wish to cover, alternative solutions or manuscript endorsements might need to be explored, or the insured may need to ensure that the organizations running the athletic events have their own adequate insurance.
• Clarity is Key: Both agents and underwriters need to ensure the 'operation' listed in the Schedule is precise to avoid misunderstandings about the scope of the exclusion.
• Pricing Considerations: The application of this endorsement may result in a premium credit, as it removes a potential area of exposure for the insurer.
• Follow Form Principle: The endorsement is designed to follow the underlying CGL endorsement CG 21 01. Underwriters should verify that the underlying coverage has a similar exclusion if the intent is to fully exclude this exposure across liability layers.