This endorsement does prevent the general liability policy of the school from being an accident coverage form for the men who are playing basketball in the school and who may get injured. CG 22 71 must be attached to a commercial general liability (CGL) coverage form that insures a school because there is always a possibility that a group that uses a school's facilities, like a gym, might have someone get hurt and then try to sue or make a claim against the school just because the incident occurred on the school premises. And, if the insured school is not managing or supervising the sporting event, the insurer feels that there is no effective control over the risk. The insured school would be open to a claim but not be in a position to control the risk exposure. That is not acceptable to any insurer.

If the school is directly managing or supervising the athletic event, the endorsement is not applicable.

Now, as to whether the insured has coverage for its own negligence even though there is no management or supervision, that may pose a problem. The exclusion says that there is no coverage for bodily injury to any person participating in any sports or athletic contest if there is no management or supervision by the insured. Let's say the men are playing basketball with no management or supervision by the insured and one of the men trips over loose floorboards and is hurt. If he files a claim or lawsuit based on the insured's negligence in maintaining the gym, that can still be a valid claim against the insured, and the wording on the endorsement says that there is no coverage because the injury occurred while a sporting event was going on and while the insured had no management or supervision at the time.

So, your carrier may be satisfied in the way he will interpret such a claim under such circumstances, but if an insurer or another claims representative takes over the policy, will the interpretation be the same? You may want to have the current carrier's interpretation down in writing just in case a claim does arise. And, you may want to have the school have the men sign a release ahead of time so as to hold the insured school harmless if one of the men is injured while on school premises playing basketball. Or, you may advise the insured to have some direct management or supervision of the games so as to negate the applicability of the endorsement's exclusionary language.