Cheer Gym Insurance Vs. Competition Cheer Squad Insurance
27 October 2008Cheerleading, as we know it today is no longer just a group of girls on the sidelines of a ball game. Cheerleading has exploded in the past 10+ years with nationally televised cheer competitions and big screen movies specifically about cheerleading. This expansion has lead to competition cheer squads that go head to head just for recreation as well as cheer gyms that are actual businesses that teach cheerleading and build cheerleading groups for big competitions.
One of the biggest confusions that we have when reviewing cheer insurance applications, is whether or not it is simply a competition cheer squad or a cheer gym. It is vitally important that the correct insurance coverage is written for the organization and what exposures they actually have.
The six questions that we always have to ask are:
- How often are the membership dues paid (ex: monthly, once per season, etc.)?
- What type of facility does the organization use (own, long term lease, private, etc.)?
- Who is the organization cheering for (ex: one team, competition squad, etc)
- How are the coaches compensated?
- Is the organization a 501c3 Non-Profit?
- Does the organization have a Board of Directors that oversees and runs the organization?
While we understand that not all of the applicants are going to fall into a clear competition squad category or a clear cheer gym category, these questions, along with other sources, do allow us to make an educated assessment of the needs of the organization in order to make sure that we provide the correct cheer insurance coverages.
As a standard, a cheer squad will pay once per season, use school / local facilities, cheer just as a squad or for another sport at their games (football, basketball, etc.), and the cheer coaches are volunteers. A cheer gym usually pays dues monthly, owns or has a long-term lease for a facility, cheers strictly in competitions and the cheer gym coaches/assistant coaches are paid.
Although there is a difference in premium between the cheer squad insurance and the cheer gym insurance, it is for good reason. The worst thing next to being uninsured is being under-insured. Sometimes this is the most frustrating since you know you have paid premium and think that a claim should be paid. Therefore, it is vitally important that coverage is purchased for the exposure that you actually have and not just to have “something” in force.
The typical cheer squad will have the exposure of injury to participants. They also have the exposure of volunteers working in the capacity of cheer coach. Coverage is provided for the cheer squad itself as well as for the volunteers.
The cheer gym as a standard has a much greater risk of exposure than a cheer squad. The exposures do not just end with injury to a participant.
- The operation or long-term use of a facility creates a property exposure for anyone that comes onto the property and sustains a premises related injury (ex: slip and fall).
- Some of the cheer gyms provide extra services outside of just the cheerleading squad such as private lessons, birthday parties, after school programs and/or softplay areas.
- Because they are run as a business the coaches of cheer gyms are considered to be “experts” in the sport of cheerleading, therefore, increasing the standard of care that is owed to the participants and thus increasing the bodily injury liability exposure as a result.
- In addition, a professional liability exposure may result if the participant of a cheer gym sues over not being offered a college scholarship, etc. due to improper coaching instruction.
The owner/trainer can lose personal assets, lose future earnings and even lose their business in the event that a lawsuit does arise and the correct coverage are not in force.
The question is, should cheer gym owners take the risk of losing everything in the event of a devastating injury and resulting lawsuit in order to save a few dollars on premium.
Please visit our website for more information on Cheer School & Cheer Gym Insurance and Cheer Squad Insurance.
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