Playing No Games

As sexual abuse remains a top concern among Sports & Rec clients, K&K Insurance advises its clients and any organizations working with youth to "seriously consider" purchasing Sexual Abuse/Molestation coverage, says Marketing Resources Manager Lorena Hatfield. "Defense costs for even an unsubstantiated claim can financially ruin an organization," she adds.

K&K also advises clients to create and implement a plan to proactively address sexual abuse. Many large amateur sports associations provide guidelines or assistance to members that can help develop a prevention program and first-response steps. The company regularly provides clients with loss control best practices, including background checks.

"A plan to prevent abuse should also include specific steps to be taken if an allegation of abuse occurs, which should always include contacting local law enforcement so the incident can be investigated properly," Hatfield says.

K&K also advises its clients that deal with youth contact sports, which includes gymnastics and cheerleading, about the risk of concussions and how to recognize and handle them. Much of this is done during annual policy reviews.

"We address many of our concerns through the application process," says Hatfield. "Our underwriters are familiar with areas of concern unique to individual sports or recreational activities," such as which recreational sports or sports camps may require additional coverage; which sports activities to exclude completely from coverage; or which accounts to decline, especially those that have a history of major losses.

American Modern Insurance Group's customers aren't physically participating in sports as much as riding. The company insures recreational vehicles like ATVs, motorcycles, collector cars, snowmobiles and watercraft. Markel Specialty offers its youth Sports & Rec clients on-staff loss control specialists to answer any questions they may have, says Mark Nichols, executive manager of its new-product development team.

The insurer also provides on-site inspections and risk management materials, and offers, through a partnership with Praesidium Inc.—a national training center for abuse risk management—sexual abuse risk management training for youth sports clients, at a 20 percent discount. The course includes online training and access to Praesidium's eLearning library of abuse prevention courses; a "Screening and Selection Tool Kit" to help clients effectively screen and select staff; model abuse prevention policies, as well as a review and discussion of the client's current cover; and a telephone hotline.

Markel's niche markets in the Sports & Rec arena include camps and conference centers; sports teams and leagues; dance and martial arts schools; gymnastics schools and all-star cheer gyms. Exclusions include parkour, circus arts and trampoline-only schools.

Coverage includes general liability, including participant liability; accident medical; sexual abuse/molestation liability (with separate limits of $1 million and $2 million); directors' & officers' liability; excess liability with limits up to $15 million; equipment; non-owned and hired auto; and crime.

RPS Bollinger's sports program is working with safety and risk management committees to address client concerns about concussion-related injuries and sexual molestation coverage, says Area President Lori Windolf Crispo. "These are still the two hot topics that sports organizations are wrestling with," she notes.

The independent broker's Sports Insurance Program includes amateur sports teams and leagues; national sports organizations and national governing bodies; amateur sports facilities; coaches and officials associations; sports training/coaching schools; sports camps, clinics and tournaments; health and fitness clubs; and special events.

Bollinger's Risk Management Services Department will work with the client groups to help them draft new guidelines both for athlete protection and to help clients implement stricter policies on background checks.

Concussions are a concern in every sport, she says.

"Anyone can take an unprotected fall backward or hit their head, whether you're skiing, playing volleyball, skateboarding or swimming," says Crispo. "You think of football, soccer and lacrosse as sports where concussions would be commonplace, but basketball also has a high rate of concussion."

Those can come from head-to-head or elbow-to-head contact while going for a ball, or from falls on the floor or a hard hit to the pole or the wall, especially in a small gym, she explains.

"With increased awareness of concussion, the claims are growing rapidly," she adds. "Whether or not they are occurring at a higher rate is up for debate."