Umbrella Insurance for City Clubs: A Broker’s Guide

In this article, we examine the ins and outs of umbrella insurance for city clubs.

Also known as a social club or business club, a city club is membership-based and, as its name implies, is often located in an urban area close to its members’ homes or offices. It’s a place where people can socialize, network, and entertain friends, colleagues, and clients. Members often have to be invited, nominated, or sponsored to be considered. Some clubs offer reciprocal privileges with access to a network of sister clubs in different locations.

City clubs are often associated with a university (for example, the Harvard Club of New York City or Yale Club of San Diego), a fraternal organization, or a military branch. Some city clubs cater to high-profile, high-net-worth individuals who value their privacy.

They typically have a restaurant, bar, gym, and space for various events such as speaking engagements, corporate events, or weddings. Some city clubs have hotel rooms and a pool.

City Clubs Are Not Country Clubs

Unlike country clubs, city clubs have fewer activities and are not family-oriented. They don’t provide childcare or have children’s activities. Country clubs, on the other hand, offer activities ranging from golf to tennis (including tournaments) to arts and crafts, games, movie nights, and daycare services for children.

City Clubs: Liability Exposures

As with any establishment, there is a premises liability (slips and falls) exposure which increases for city clubs that hold large gatherings of members and invitees, as is the case with speaking, corporate, and private events.

Liquor liability is another exposure for city clubs. A higher percentage of liquor sales will mean greater liability exposure for a city club. Alcohol tends to lead to more on-site physical injuries and vehicular accidents involving overserved members.

Security is also an issue, particularly with high-profile members or invitees.

Why Sell City Club Umbrella Insurance?

While General Liability and Liquor Liability insurance coverages provide standard limits, they may not be adequate in a catastrophic event. High jury verdicts and settlements make Umbrella insurance an integral component of any city club’s comprehensive insurance program.

An Umbrella policy supplements the coverage provided by the underlying policies by extending a client’s limits in the event of a catastrophic incident or accident. You’re providing clients with an extra layer of protection necessary in today’s litigious environment.

Our Umbrella Policy for City Clubs

Distinguished Programs’ Umbrella insurance for city clubs is available for city membership clubs with or without gyms and pools and with or without hotel rooms. We don’t write city clubs that organize outings and trips for their members.

Our Umbrella program features include the following:

  • Ability to offer high limits, up to $170 million
  • Broad follow form for General Liability and Liquor Liability
  • No sublimit for Liquor Liability

Our Umbrella program also includes Crisis Response coverage which provides the expertise and funds to manage a significant event, such as an on-premises security breach or liability accident and mitigate reputational damage. From costs associated with securing the scene to service providers and crisis management fees, the coverage ensures that policyholders can quickly and efficiently respond.

In restoring public confidence and safeguarding their reputation, Crisis Response coverage protects the financial well-being of city club owners – critical to the success of these clubs, as their reputation and that of their members is everything.

Insuring City Clubs

You can establish a solid footprint insuring city clubs with Distinguished as your partner. You may already belong to a university city club as an alum, which is a perfect entrée to asking for an opportunity to review its insurance program. If you live in a big city, you’re sure to find a number of city clubs to target offering your expertise, including providing them with Umbrella insurance.

With our Umbrella program, you can stress our decades of experience writing this coverage in the hospitality industry, including our pioneering role in establishing the nation’s first real estate Umbrella purchasing group. Our coverage is underwritten with A or better rated carriers, providing the financial stability insureds are looking for with their insurance program.

The sky’s nearly the limit with high-limit Umbrella polices available, enabling you to adequately address the insured’s exposures.

We hold the pen, so there’s no runaround with us. You are working with decision makers who can help you build the towers necessary for accounts with large exposures.

About Distinguished Programs

Distinguished Programs is a leading national insurance Program Manager providing specialized insurance programs to brokers and agents with specific expertise in Fine Art and Collectibles, Environmental and Construction Professional, Executive Lines, Inland Marine, Real Estate & Builder’s Risk, Community Associations, Hotels, and Restaurants. Property and Liability products are distributed through a national network of agents and brokers. Serving the same core markets and partnering with the most stable and reputable carriers, Distinguished’s high-limit Umbrella programs remain the clear choice in its area of specialty for superior coverage, competitive pricing, and attentive service. Through thoughtful innovation, stemming back to 1995, Distinguished Programs fosters growth and opportunities for its brokers, carriers, and employees.

View a full list of our programs and submit business with Distinguished.

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