Sports Insurance Glossary : Letter L

Lapsed Policy - An insurance policy which has passed its expiration date without renewal or continuation of the coverage provided by the policy.

Legal Liability to Participants - This coverage typically refers to persons while practicing for, or participating in contests or exhibitions of an athletic or sports nature. The coverage responds to and defends you in a suit being made against you, by a participant in a contest or exhibition (of an athletic or sports nature) which you control, promote, or sponsor.

Liability Insurance - Provides protection for the insured against loss arising out of his/her legal liability to third parties.

Liability Limits - The stipulated sum or sums beyond which an insurance company is not liable to protect the insured.

Limit - The maximum amount of benefit that an insurer agrees to pay in the event of a loss.

Line of Insurance - A type or kind of insurance.

Litigation - The process of a lawsuit.

Liquor Liability - This type of liability insurance provides coverage for bodily injury or property damage for which you may be held liable by reason of:
• Causing or contributing to the intoxication of any person;
• Furnishing alcoholic beverages to a person under legal drinking age or under the influence of alcohol; or
• Violating any statute, ordinance, or regulation relating to the sale, gift, distribution, or use of alcoholic beverages.
This coverage only applies if you are involved in the following activities:
• Manufacturing, selling, or distributing alcoholic beverages;
• Serving or furnishing alcoholic beverages for a charge, whether or not such activity requires a license or is for the purpose of financial gain or livelihood; or
• Serving or furnishing alcoholic beverages without a charge, if a license is required for such activity.


Loss - An occurrence that is the basis for submission and/or payment of a claim. Losses can be covered, limited or excluded from coverage, depending on the terms of the policy.

Loss Control Representative - Insurance company employee or subcontractor that perform loss control surveys (for underwriting purposes) and prepare written loss control reports that outline their findings. The Loss control representative provides a value added risk control service to the policyholder.

Loss Experience - The loss record of an insured or of a particular class of coverage.