“But we have everyone sign a waiver …”

This is a common statement made by youth sports organizers when someone asks about the financial consequences of injury. However, did you know a parent-signed waiver or release is effective in only about 10 states? And what if the person who is injured is a spectator who hasn’t signed anything? Or a coach or official who did sign a release but files a lawsuit anyway?

Even if a court case is eventually dismissed, legal defense fees can easily top $25,000.

So while a waiver is still a good idea, it will not provide the protection your youth sports league needs. 

The game plan

You must consider the physical and financial safety of the athletes, spectators, coaches, officials, paid organizers and volunteers, as well as their possessions.

The four basic insurance policies every youth sporting league should have are:

• Accident insurance — This covers the medical expenses incurred by an injured volunteer or sport participant (an athlete, coach or official), regardless of whether someone is considered at fault. When you consider the fact that nearly a quarter of all children do not have any form of medical insurance, it’s easy to see the benefit of this coverage. Whenever an injured party has unpaid medical bills, they are more likely to get a lawyer involved. This type of policy pays the bills and helps minimize the likelihood of a subsequent lawsuit.
• General liability insurance — This protects your organization from the extreme costs of a lawsuit, an injury or property damage due to the alleged negligence of anyone connected to your league. It shields the financial assets of the organization and any officers, directors, employees or volunteers.
• Directors and officers (D&O) liability insurance — Any of your league’s directors, officers, employees or volunteers can be sued for mismanagement that causes economic injury or loss of rights. Examples include discrimination, wrongful termination, wrongful player suspension, or failure to follow Title 9 or the Americans with Disabilities Act. A D&O policy covers any resulting legal fees or required damages.
• Crime insurance — This type of policy reimburses you if an employee or volunteer embezzles money from the organization.

Look at the whole field

Your youth sports organization needs to think beyond game day. Your risks can span the entire year, depending on facilities, practice schedules and other program realities. It's important to understand any policy exclusions or restrictions.

Here are some insurance details to consider:

Confirm liability coverage for all league representatives and events

• Many leagues rely on coach certification policies for liability protection for the coach. But most of these policies provide protection only during direct sports coaching. What if someone is injured during travel or a nonsport outing and the coach is considered at fault?
• Some organizations assume that homeowners liability or personal umbrella policies owned by volunteers cover actions that take place during league events. However, this isn’t always the case and it's certainly unlikely for all volunteers. Even if you could confirm 100% volunteer coverage, personal coverage does nothing to protect the league itself.
• Your general liability policy should include all league events, including off-premises practices, away games, group travel and nonsport outings.
• If a policy you're considering has the following exclusions, explore different options:
  • “Athlete participant exclusion,” which means the kids themselves are not covered
  • “Sex abuse/molestation exclusion,” which would not cover you in situations where such behavior is involved
  • “Punitive damages exclusion,” which would not cover any awards for “grossly negligent behavior that is willful, wanton and reckless” (This is a standard request most lawyers add to liability claims.)
  • “Brain injury exclusion,” which removes or limits protection during lawsuits that arise from long-term brain injuries or concussions (This is a risky exclusion to carry given public awareness of and youth participation in contact sports.)
• If you own or have a long-term lease on facilities, understand that your liability is an issue every hour of every day. Most general liability coverage only protects you from issues that occur during sanctioned, supervised events at your facility. However, your insurance professional can add the coverage required to protect your organization during the offseason or after hours.
• If you practice at a public facility, the general liability policy of the recreation department or municipality only covers its own liability. It does not extend to your organization.

Don’t shortchange your medical protection

• Avoid any policy with a limit less than $25,000. It’s more realistic to carry a limit of $100,000 given the current cost of medical care.
• Pass on policies that limit surgeon fees, hospital room and board, doctor visits or other expenses under a separate schedule. This often leads to an underpayment of bills.
• Compare “excess” versus “primary” coverage.
  • Primary coverage pays, regardless of whether the injured individual has their own health insurance. It may even allow for double payment of bills.
  • Excess coverage pays the deductible, coinsurance and payment gaps when the injured person is covered by a personal medical plan. When the person does not have their own personal insurance, it covers all bills.
• Adjust your deductible amounts. This can substantially reduce premiums. In amateur sports, deductibles most commonly range from $0 to $1,000 per claim.
• Make sure your policy covers all athletes and any adults required to run the organization at any level. This should include volunteers.
• Avoid policies that limit coverage to games and practice only, particularly if yours is a travel team or participates in team-building activities.
• Understand whether your policy is written on an “occurrence” or “claims-made” basis. A child injured at age 6 could still file a lawsuit years later.
  • An occurrence policy covers any injury that occurs while the policy is in effect, even if a claim is made years later and the policy is no longer current.
  • A claims-made policy only covers claims that are filed while the policy is in effect.

Score!

As any great athlete knows, it’s all about preparation and teamwork.

Before your existing policies lapse, invite your Rathbun Insurance account manager to a practice and an actual game or contest. This is a fun way to establish a partnership and explain the specifics of your sport and league operations. They can help you identify overlooked risks and design a winning plan.