With summertime in full swing, many people have turned theirattention to fun in the sun, making it a busy time for organizedsports activities–as well as for the specialty insurers andproducers who serve them.

This niche targets not just summer sports leagues, but camps tohelp improve a youngster's chances for getting an athleticscholarship, as well as more experienced amateurs in search of howto stop slicing the ball in their golf game or improve theirbackhand for tennis.

For agents and brokers, marketing sports insurance can be anopportunity to engage in some new business or cement a long-termrelationship with existing commercial and personal linesclients.

But those who specialize in these markets say there is more tothe niche than a simple liability policy required to play on amunicipal field. And while the coverage is traditionally a goodrisk, there are potential issues that may not be so obvious to theuninitiated or inexperienced in the field.

“The amateur sports market continues to grow as the variety ofsports activities available for both children and adults expands,”noted Sheila Morton, sales director for K&K Insurance GroupInc. in Fort Wayne, Ind. “With a continued media focus on theimportance of healthy lifestyles combined with the popularity ofyouth sports, we expect the trend to continue.”

From a loss experience standpoint, the niche is a marginallyprofitable business, and like the rest of the property and casualtymarketplace, there is a lot of competition, according to David A.DePuy, executive underwriter and program manager of the amateursports program for Markel Insurance, headquartered in Glen Allen,Va., who said his company has managed to maintain its rates.

If there is one major drawback to the market, he said, it isthat the risks are primarily low premium-dollar accounts.

Lori Windolf Crispo, senior executive vice president for ShortHills, N.J.-based Bollinger, noted this line is highlytransactional involving a lot of small policies, so “the moreautomated, the better.”

The coaches and others involved in the sports camps and amateurleagues are not professional risk managers. Many are volunteers inorganizations where the leadership changes each year, thusrequiring “help to walk through” insurance purchasing decisions,Ms. Crispo noted.

“We have never been able to put these accounts on direct billand stop touching them,” she observed. “They like their hand held alot because they do not know or want to know much aboutinsurance.”

For an independent agent, the likelihood is that theirinvolvement will first begin when an existing client who becomesinvolved with a sports program approaches them for help with theirinsurance. Many times, the market specialists note, clients willcontact them on short notice after discovering they need coveragebefore the weekend to play on a public field.

Getting liability coverage may not seem like a significantproblem, but the executives who specialize in this market warn thatproducers need to know more than they think they might to provideproper coverage.

“Agents new to writing sports risks are sometimes unaware ofgaps in coverage,” said Ms. Morton. “We often get calls from agentslooking for just medical coverage or just liability coverage.Agents should take the time to understand the complete risk andverify each individual organization's potential exposures.”

Brokers helping out a sports league need “to work with aspecialist to make sure the customer has the cover they need,”added Ms. Crispo. “There is a lot to think of, and they needsomeone to lead them through it,” she said, emphasizing the need towork with an expert who can package the insurance properly forthem.

“The local broker has the presence,” said Ms. Morton. “They needto make it easy for themselves and not reinvent the wheel, and useus for their risk management needs.”

Specialists also pointed out that placing sports programs is anexcellent way of promoting an all-purpose agency. Because of thenature of the buyer, local agents may find clients contacting themafter volunteering to head up a sports league and discovering theleague needs insurance for an event. Successfully coming to theclient's aid can only be a plus for the agent's reputation for wideexpertise and reliability.

Certain camp programs can be an avenue for a producer to expandan agency's business, said Mr. DePuy. This can happen when a coachor a coaching assistant at a college, for instance, runs a summersports program. Filling that need for a coach could give an agentaccess to a larger college program if the client is impressed withthe specialty service and could lead to expansion into moreexposures elsewhere.

Both K&K's Ms. Morton and Bollinger's Ms. Crispo pointed outtheir firms have Web capability for agents to access information,buy insurance or speak to someone in person. At managing generalagent K&K's site, www.SportsInsurance-kk.com,agents can obtain quotes on some business and get certificates,while Bollinger (www.BollingerSports.com)offers safety information, explanation of coverage and the abilityto buy insurance with a credit card for direct retail service. Thefirm also sells the product on a wholesale basis.

Markel also offers a dedicated website at www.campinsurance.com withinformation and quoting capability. The company's other specificcamp and activity offerings can also be obtained through thissite.

One new emerging risk area the company offers is forcheerleading camps, according to Markel's Ian C. Garner, directorof Camp & Youth Organization Relations, who noted that “thereisn't a high school participant that does not go there eachyear.”

While amateur sports and camps is a good business, thespecialists noted that it does suffer from the same soft marketcompetition that many other lines are enduring in this tougheconomy. While standard lines carriers are less likely to enterthis niche due to the low premium returns, it has not preventedexcess and surplus lines carriers from competing.

Generally, capacity has not been an issue, but when it comes tolimits, insurers have put the brakes on the amount of exposure theyare willing to accept, specialists in the market said.

One trend cited is a growing request for higher limits, withsome offerings as high as $5 million for leagues andassociations.

Regional and state soccer associations, for instance, where thebusiness is “highly competitive,” noted Markel's Mr. DePuy, haveset requirements and guidelines laid out by their nationalgoverning bodies.

Other organized leagues and teams that often use municipalfields might need additional insurance beyond just a simpleliability policy. Ms. Crispo of Bollinger noted that the necessarycoverage could include accident and liability, directors andofficers, and an equipment floater to insure transportation ofleague equipment–or even portable concession stands.

One feature that is increasingly advised is sexual abuse andmolestation coverage. Specialists often pointed to the scandal thaterupted in April at the U.S. swimming team, where several coacheswere let go after reports they engaged in abusive behavior offemale athletes.

Mr. DePuy noted that this is separate coverage to provideinsurance for coaches and staff.

“They really need to have it,” added Markel's Mr. Garner. Markelhas pushed awareness and education on the exposure, and as Mr.DePuy related it, many clients “may look at you cross-eyed” whenthe subject is brought up. But he said he has “seen enough allegedabuse charges that it is worth the money that is paid for it.”