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By now many of our members probably have heard in one way or another about
a recent problem with the Guilbeau Gators Swim Team not carrying any liability
insurance and the ramifications this caused.
The information on lack of liability insurance actually came to light because
of a request by the swim team for GPOA to provide them with extra insurance
for their "away" swim team matches. Because of this request a session
was set up with our insurance agent on May 23rd to review our insurance
policy and discuss the added insurance. When the agent reviewed our
current policy that review revealed that there was a specific liability
exclusion for any athletic activities. Specifically, the policy states:
2. Exclusions
We will not pay expenses
for "bodily injury":
e. Athletics
Activities
To a person injured while taking part in athletics.
Apparently
this exclusion has been in effect for some time and previous BODs were
unaware of this exclusion. Additionally,
our insurance company, Philadelphia Insurance, will not allow these activities
to be covered in any way under their policy. To get liability insurance
to cover athletics requires an "after market" policy to be purchased from
a separate insurance provider at a very expensive premium, not budgeted
for by GPOA.
After
further discussions with our agent and our lawyer the Board decided that
the risk to the community was of such importance that we had to resolve
the problem immediately and not wait for the next meeting. Discussions
between Board members ensued and a decision was reached on May 27th to
require the swim team cease and desist all activities until they could
provide separate liability insurance and for each parents of swim team
participants to additionally sign a "Hold Harmless" waiver further protecting
Guilbeau Park Owners Association before resuming activities.
Before
the cease and desist instructions went out, on the morning of May 28th,
the coordinators of the swim team presented an Alamo Area Swim
League insurance policy (held by K&K Insurance) which Guilbeau Park
Homeowners Association, Inc. could be put on as an additional insured.
This new insurance also negated the need for the Hold Harmless
waiver. Our insurance agent confirmed this by contacting that company
and by the afternoon of the 28th and the addition was completed and certificate
filed.
The Board
of Director's most important duty is to protect the GPOA from financial
ruin and this potential risk certainly fell under that heading. An
injury during a practice or meet could potentially present us with a law
suit for a million or more dollars, which could
effectively wipe out the equity many of us have in our homes. We
hope this clears up any rumors that may be flying around regarding this
recent incident and hope the members of this community understand
that we are trying to protect the community as a whole while at the same
time allowing our children to have the benefit of a fun and educational
experience in swimming athletics. |
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