PROTECTING THE NET: Ramifications of Off-Field Exposures for

Professional Athletes

Wednesday, February 25, 2015

By Kim Lucarelli & Ron Boynar

Oswald Specialty:

Professional Athletes

• More than 30 years experience

• Professional athletes and coaches across all

major leagues

• World-class personal insurance products and

concierge services

• Annual risk evaluations and assessments

• Pre-loss preparation and post-loss

claim advocacy

• Comprehensive policy auditing service

Kim Lucarelli Senior Vice President

Director of Personal Risk Management

216-367-8582

klucarelli@oswaldcompanies.com

Ron BoynarBusiness Development

Athletes & Entertainers

216-367-4936

Twitter @ #OswaldSpecialty.com

rboynar@oswaldcompanies.com

Personal Insurance Advocates

The Case for the Professional Athlete and the Shell Corporation / LLC:

Shell corporation established

Contract signed with sponsor for

product promotion

League coverage does not apply to shell company or outside events

Commercial general

liability is required

When Celebrity is a Target. Consider

the following...

• A rookie athlete agrees to do an autograph session at a local

bookstore, when a child trips over his chair suffering injuries.

• A pro basketball player hosts a children’s coaching clinic

during the off season. While demonstrating a dunk, a child

near the basket is injured. The athlete is presented with

medical bills and future rehabilitation expenses.

• An athlete’s foundation sponsors a charity celebrity golf

tournament and his drive goes awry, injuring a spectator. The

spectator is injured and sues the athlete.

• A pro baseball player writes a book about his career. Someone

named in the book accuses him of slander and sues the

player.

Commercial General Liability

Insurance for Athletes

• Who is covered?

– Partnership or Joint Venture

– Corporation or Association

– Employees

– Subsidiaries where 50% of voting stock is owned

– Contractual written agreements that require

indemnification

– Newly acquired organization

– Legal representatives

– Volunteers

Commercial General Liability

Insurance for Athletes

• What expenses are covered?

– The insurer’s expense to investigate or defend a

claim or suit.

– Attorney’s fees, witness fees and police report costs.

– Reasonable expenses the client incurs at the insurance

company’s request to aid in defense.

– Judgment or settlement arising from a covered suit.

– Required interest on the judgment if the defense is

unsuccessful.

– Medical expenses for injured parties.

– Premiums for any bonds required by the liability suit.

Commercial General Liability

Insurance for Athletes

• What protection is provided?

– Bodily Injury

– Property Damage

– Contractual Liability

– Liquor Liability

– Hired & Non-Owned Automobile

– Legal Defense Costs

– Medical Payments

– Personal Injury

– Advertising Injury

Commercial Exposure Examples (LLC

and Non-LLC):

• Shell Corporations

• Rental Home / Rehabilitation Business

• Videogame Production

• Touring / Performing / Recording / Composing

• Promotions

• Special Events

• Broadcasters, Publishers, Film or Television Production

Liability

• Advertising & Public Relations

• Commercial Real Estate Holdings / Development

• Athletic Coaching / Clinics

• Foundation Directors and Officers Liability

• Farming / Ranching

• Celebrity - Personal Appearance Errors and Omissions

Other Unique Risk Management

Needs for the Professional Athletes

• Personal Homeowner, Automobile & Liability Insurance:– Homes in multiple states

– Non-Owned Automobiles

– Valuable Articles – Jewelry, Fine Arts, Firearms, Sports

Memorabilia, etc.

– Luxury, Classic or High-Performance Vehicles

– Kidnap & Ransom, Extortion

– Target / High Profile Status – High Limits of Personal

Excess Liability

– Financial Support of Family or Friends – purchasing

homes, autos, valuables, etc.

– Farm & Livestock, Equine, Bloodstock

– Aircraft Ownership / Fractional Ownership

– Domestic Employees; Housekeeper, Nanny, Caretaker,

etc.

PROTECTING THE NET:

Mass Torts and Professional Sports:

What You Need to Know About Concussion

and Prescription Drug Lawsuits and Related

Insurance Litigation

Wednesday, March 4th, 2015

By Noel Paul & Ron Boynar