Fundraisers and Requests for Additional Insured Certificates
Due to increased loss activity on the ASA General Liability policy, and especially due to losses with fundraising activities, the ASA National Office and RPS Bollinger are recommending that requests for additional insured certificates for fundraisers be reviewed carefully before being issued. Note that the ASA General Liability policy has been constructed and priced with softball in mind. However, the policy has been forced to respond to claims that stem from activities that stray far from softball. For that reason, it is critical that we all pay attention to the extension of coverage where non-softball activities are concerned.
As teams and leagues attempt to get more creative with fundraising efforts, the risk of liability losses at fundraising events is increasing. Past losses and common sense tell us that any fundraising activities involving vehicles and/or golf carts are especially dangerous. Fundraisers that take place at carnivals, fairs and festivals also have given rise to liability claims. Food service fundraisers where kids and parents are asked to man fryer stations or alcohol distribution are fraught with danger. If there is a hint of added exposure, the request for that certificate will be referred to RPS Bollinger. RPS Bollinger may be able to insure the fundraiser separately as a special event if it is large enough – an alternative to just telling a league or team, “No.”
An additional insured certificate for a fundraiser is likely being required for a reason – the requester has seen a liability loss in the past, or has envisioned a scenario in which one may take place. Remembering that the ASA liability policy is designed to respond to softball losses, the reality is that the ASA cannot afford to issue these fundraising certs and willingly accept the additional liability risk.
It is also worth mentioning that teams and leagues have in the past signed contracts in order to hold certain fundraisers. RPS Bollinger is recommending that teams and leagues be instructed not to sign a contract to hold a fundraiser, as that contract often waives the right to subrogate against an entity that may be responsible for the loss/incident.
We encourage all ASA teams and leagues to stick to fundraisers that do not create adverse liability situation for the parents, the team and the ASA. Raffles, Tricky Trays, 50/50s, Fundraising Dinners (without alcohol), Bake Sales, etc. – all are successful, low-risk events. Type the content of your page here