Youth team sports have not seen asharp downturn in interest during the recession—and some sports,like lacrosse, are seeing marked growth.

The key trends identified by the E&S players who specializein this market sector: a heightened awareness among parents (andplaintiff attorneys) of the long-term repercussions of concussions;and increasing interest in sexual-abuse coverage, following twohigh-profile incidents at the college level.

The question of permanent damage from concussions has been thebiggest youth-sports topic among parents and insurers, says JamesDecker, assistant vice president of the commercial-lines divisionfor Philadelphia Insurance Cos. in Bala Cynwyd, Pa. People arebeginning to ask questions about the responsibility of the amateurleagues as far as knowing there is an inherent risk, he says.

“It's clearly happening not only in youth football, but we'reseeing it a little bit in soccer and basketball, too,” Deckeradds.

Some of the talk focuses on former pro athletes who are just nowseeing the long-term effects of concussion injuries incurred duringtheir prime. Decker points to famed 1980s Chicago Bears quarterbackJim McMahon, who reportedly has some permanent memory damage aftera career that included at least three severe concussions. “A lot ofthe repercussions from concussions are not known at this point,”says Decker.

Solutions thus far rest with both the leagues and the insurers,who together need to set rules for post-concussion treatment andplay, he says—adding that the leagues are becoming more aware ofthe potential impact concussions could have on future claims:“Pleading ignorance won't fly anymore.”

GETTING SERIOUS ABOUT CONCUSSIONS

While serious coverage implications due to concussions stillhave yet to emerge, insurers, coaches and league officials arelooking at prevention, testing and return-to-play guidelines, saysMark Nichols, managing director of the accident and health unit ofGlen Allen, Va.-based Markel Corp.

“I remember when I was a kid playing football we called it'getting your bell rung,'” Nichols says. These days, “the issues onconcussions focus around a variety of things. There's a lot offocus now on baseline testing to try to understand how we diagnosewhen somebody has concussion symptoms and when are they medicallyclear to participate.”

Prevention and guidelines for returning to play are beingreviewed by state legislatures, insurance companies, risk managersand sports leagues, Nichols says. Cognitive testing is apossibility: score players in advance to get a sense of theircognitive ability and test them again after a concussioninjury. 

“It's a risk that must be managed,” says Lori Windolf Crispo,managing director for the sports programs division at BollingerInsurance in Short Hills, N.J. Bollinger has been the insuranceadministrator for U.S. Lacrosse since 2001.

“We had a boy, 16, who went backto play the day after receiving a concussion,” Crispo says. NewJersey state law dictates that the boy needed to be evaluated by adoctor, but he was not. “He sustained a second concussion and hassome permanent damage.”

Such an injury falls under General Liability because it is abodily injury; however, the sports organization itself also can befound negligent if it doesn't have guidelines in place to addresssuch situations, says Crispo. 

Leagues or camps that are part of a larger organization shouldbe aware of and follow concussion protocols, says Todd Bixler,president and CEO of Fort Wayne, Ind.-based K&K InsuranceGroup, a managing general underwriter with Nationwide as itsprovider. K&K provides coverage for sports teams, leagues,associations, events, tournaments, camps and clinics, amongothers.

SEXUAL ABUSE TAKES CENTER STAGE

Additionally, K&K is releasing a new product to confront theissue of sexual abuse, Bixler says. To be offered this spring, thecoverage includes Sexual Abuse or Sexual Molestation Liabilitycoverage, with limits of $1,000,000 each occurrence/$1,000,000aggregate. Other coverage enhancements are also in the pipeline, headds.

Child abuse has been taking center stage in youth sports due torecent high-profile sexual-abuse claims out of Penn State andSyracuse University, says Decker, who notes that Sexual Abuse andMolestation coverage is currently the leading coverage requestamong amateur-sports teams nationwide.

“Child abuse is becoming a hot topic and [Molestation coverage]has become a hot seller, not only in sports and recreation but alsoin nonprofits and day care,” Decker says.

Sexual Abuse coverage is especially important today as thenumber of sports camps grows despite the challenged economy, Crisposays. Lacrosse teams and camps, for example, have been growingrapidly. The sport has seen double-digit growth in each of the last12 years, and its insurance needs have increased as well, saysSteve Stenersen, president and CEO of Baltimore-based U.S.Lacrosse, which touts some 800,000 player-members.

Educating parents on what they should ask of asports league is essential, according to Stenersen. “We're tryingto empower parents to not just be zombies and assume that withtheir rec or club program, their coach is properly educated, hasundergone a background check, there's an AED [Auto EmergencyDefibrillator] on site, there's a risk-management plan in place,”he says. “We're trying to empower parents to ask those questions,to check what insurance is in place.”

U.S. Lacrosse offers acomprehensive insurance program that is part of the membership,including Excess Accident, CAT/Medical and Participant LegalLiability.

The Excess Medical Benefit has a limit of $25,000, and theadditional CAT/Medical goes up to $1 million and pays for legalliability as well, he adds. D&O is available as an add-on.

U.S. Lacrosse also provides risk management by creatingstructure in a sport where there was none, even as recently as 15years ago. “Before U.S. Lacrosse there was no standard criteria orcurricula for coaches or officials nationally,” says Stenersen.Maximizing player safety, ensuring that the rules of the game aretaught correctly to both boys and girls (each sex has differentrules of play) and officiating matches effectively help to preventinjuries.

PROTECTING PARENTS' INVESTMENTS

Overall, the youth-sports niche is doing well. It's a “prettyexciting and secluded world right now,” says Decker. “It doesn'tget as affected as one would think when the economy tanks, mainlybecause people are willing to invest the money in their kids.You'll see them cut the Disney vacation, but not the Little Leaguebaseball. It's something parents see as an investment in theirkids.” Youth sports is still a lure for parents who want to givetheir children an edge toward college and a scholarship, addsCrispo.

Pricing has firmed moderately in the amateur-sports segment,says Tony Pulgine, president of MIC Insurance Brokerage Inc. inNaperville, Ill. “We are able to get small increases on renewalcoverages, but so far, rates have moderated.”

Pulgine says he's seeing growth in Participant Accidentcoverage, which continues to gain momentum. “We're actuallybranching out into more volunteer and not-for-profit groups thatare looking for this product for their volunteers,” he adds.