I represent a local sport group. We are not an LLC or 401C or anything. Another local group is an LLC. They are proposing that our two groups share an insurance policy that we’re required to carry by local county and states parks. I’m wondering if there’s any legal ramifications or reasons why this would not be a good idea, as it would decrease costs for both groups.
You would face practical issues with attempting to "share" the insurance policy. Presumably, the policy would be issued to the other local group's LLC, so it is unclear how the insurance policy would cover your group. Aside from needing to identify your group for coverage purposes, there should be a connection between your group and the LLC so that both might be covered by a single policy. You should consult with an experienced Business Attorney or a knowledgeable insurance agent to explore ways in which you might accomplish your goal.
The foregoing discussion does not establish an attorney-client relationship, is qualified by the limited facts presented above, and should not be relied upon as legal advice. My intention in answering questions is to provide guidance that will familiarize the public with the subject matter and facilitate selecting and interacting with attorneys. To obtain definitive legal advice upon which one can rely necessitates retaining an attorney who is qualified in this particular area of the law.
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