Joint Ventures


     A joint venture is an entity formed by two or more businesses in order to pursue a specific purpose for a specified period of time. While some states require joint ventures to be legally filed, other states recognize any entity that meets the definition. A partnership differs from a joint venture as the former lasts indefinitely and its purpose may change.


     A joint venture (or JV) can consist of sole proprietors, corporations, partnerships or any combination of these entities. Such ventures often bring together two areas of expertise to be applied to a single objective. Therefore, JVs allow the participating entities to capitalize on that combined expertise for a specified time period. JVs may also consist of entities that are, typically, rivals in the same market that may join forces for a commercial activity that they are unable to pursue alone (typically due to size, resources or expertise).


     Insurance policies generally do not cover a JV unless its name is shown on the policy. There is no automatic coverage for a business that begins a joint venture during a policy term. For instance, two contractors are interested in bidding on a major project. They decide that it may be beneficial to bid on the project as a single entity. In this case, the joint venture is recognized as a distinct legal entity formed for pursuing the project. Unfortunately, it’s equally common for businesses to fail to recognize that they have formed a JV. The oversight could result in the joint venture suffering a loss that isn’t covered by insurance.


     Consider contacting an insurance agent to discuss your possible coverage needs which may include general liability, automobile liability and, if the joint venture has employees, workers compensation insurance. It is also important to determine if the joint venture will need insurance to continue after the JV ceases to exist. While JVs can be extremely beneficial to all participants, they also have the potential for legal and operating problems that are unforeseen. JVs often involve complex contracts and non-disclosure agreements. The coverage issues are unique to each joint venture and should be carefully addressed by legal counsel and the insurance agent in cooperation with the joint venture principals.


COPYRIGHT: Insurance Publishing Plus, Inc. 2017

All rights reserved. Production or distribution, whether in whole or in part, in any form of media or language; and no matter what country, state or territory, is expressly forbidden without written consent of Insurance Publishing Plus, Inc.



Golf Hazards


Golf is an ancient game with well-established rules and customs that enable the players to maximize their enjoyment and to ensure their safety. There are many dangers involved with golf. Each golfer has a right to rely upon the fact that others will observe adopted rules and customs.

Besides the demand of good sportsmanship, laws also impose obligations to use ordinary care while playing golf. The failure to observe safety rules or to use the proper degree of care, precaution and vigilance under given circumstances may be negligent. Negligent acts could trigger legal action and put a golfer in someone else’s sights to recover damages for injuries.

A player is not always able to control either the direction or destination of a golf ball. Every golfer knows that the slightest imperfection in his or her stroke may cause it to stray from its intended flight path or landing site. Therefore, a cardinal rule of the game is that, before addressing the ball, one should warn those persons in the area who may be harmed if a ball is driven inaccurately.

Golf caddies (persons who assist in carrying golf equipment, help track struck balls and providing golfing guidance) are particularly prone to injury because of the amount of time they spend on the course. Further, their job requires them to focus in a manner than doesn’t permit them to be fully aware of on-course dangers.

Example: A caddy was injured when a player failed to give proper warning. The caddy sued the golfer. The court decided that, with players and caddies out in front of him and with the knowledge that his ball might deviate from its intended course, the player had a duty to observe whether there were any persons in the general direction of his drive and, if so, to see that they were adequately warned: furthermore, the caddy had a right to expect that the player would not endanger him by driving in his direction without giving some audible warning in time for him to protect himself. Since a warning had not been given, the player was guilty of a breach of his duty and owed the caddy damages.

Example: A caddy and his player were following a foursome who had reached a tee and were preparing to make their drives. In order that he might follow his own player’s ball when it came his time to drive from the same tee, the caddy took a position on an adjoining fairway near the one being played. His attention for the moment was fixed elsewhere and he did not observe the last member of the foursome drive. The ball swerved from its intended course; no warning was given until it was in flight; and he was struck over the eye. A jury concluded that the player had violated his duty to use the care of a reasonably prudent person who would have given timely warning to endangered persons.

Example: One player was demonstrating a stroke to her companion and, on her “follow through,” she struck a nearby spectator. She was held responsible for the spectator’s injury because she admitted she did not look when she made the stroke. A jury determined that her conduct did not measure up to that of a reasonable person in the same circumstances and the player had to pay a substantial verdict.

Golfing accidents can occur and many take place without the person causing the accident having to pay damages. All that a player is required to do is exercise the level of precaution demanded by the applicable circumstances. Typically, no legal fault is found where injury results from an unanticipated event.


COPYRIGHT: Insurance Publishing Plus, Inc. 2017

All rights reserved. Production or distribution, whether in whole or in part, in any form of media or language; and no matter what country, state or territory, is expressly forbidden without written consent of Insurance Publishing Plus, Inc.