While the Penn State case is making national headlines because of its legendary coach and it’s football program, understand that this happens FREQUENTLY in youth sports.  Most of our readers are involved in teams/leagues/youth programs in one-way or the other. Are you a coach, athletic director, team mom or a parent on the side-lines?  Whatever your position, today is the day to step back and realize where exactly you fit into the lives of the kids participating in your youth sports organization.   You are there to protect them at all cost.

Some time ago, we did a blog on Protect Your Kids From Predators In Youth Sports.  This blog is a must read for anyone that has or is involved with children. It includes an article from Sports Illustrated from actual predators in youth programs saying “This is how we got away with it …this is how you protect your kids.” (Example from the article, Did you know, Studies have found that the average preferential molester victimizes about 120 children before he is caught? DISTURBING). It also contains useful Risk Management guidelines that can be implemented TODAY!

For more articles on preventing sexual abuse and molestation, visit our blog.

Shart this with others so that we all can make a difference.

Field / facility owners are almost always shot gunned into these lawsuits as a deep pocket even if they are 0% at fault. The defense costs and possibility of settlement or adverse jury verdict can be very expensive. This can result in unbudgeted out of pocket expenses (in event of self insurance or large deductible insurance program) or in a large loss that is paid by their insurance carrier. When these losses are paid by insurance carriers, such insurance carriers may non renew or may ask for large rate increases. Therefore, field / facility owners have a lot to lose when they make their premises available to outside user groups.

It makes sense that the group that is responsible for the injury and resulting lawsuit should be financially responsible for paying the damages. Therefore, prudent field / facility owners require outside users to carry their own insurance that meets certain minimum standards that are drafted by risk managers or attorneys employed by the field / facility owner.  Such insurance requirements specify the types of policies to be carried, minimum limits of coverage, and special coverage endorsements such as “Additional Insured” status for the premises owner.

Requiring outside user groups to be financially responsible for their own injuries and lawsuits is a good business practice. Even high limit insurance is surprisingly affordable and easy to obtain when reputable sports insurance and event insurance specialists are contacted.

However, some sports organizations that own or are long term lessees of athletic facilities are also legally responsible for injuries that occur on a 24/7 basis for 365 days a year.  Ownership triggers the liability for premises owners and lease agreements with hold harmless and indemnification provisions trigger the liability for long term lessees. 

If your sports organization has 24/7 liability as discussed above, you should avoid the endorsement entitled “Ownership, Maintenance, Management of Athletic Fields or Facilities Exclusion or similar exclusions.  As an alternative to removing this exclusion, some sports General Liability carriers allow a buy back that is commonly called “24 Hour Premises Liability”.

Source:  John Sadler

Ed Tolley, the athletic association attorney, noted that the settlement was a sign that the “athletic association had committed to helping Bryant all along”. 

However, Bryant claimed that an official of the school failed to complete the paperwork for the $500,00 policy. 

Source:

http://www.insurancejournal.com/news/southeast/2010/02/26/107703.htm

 Great American unsuccessfully argued that the certificate of insurance did not apply to the second team since its name was not listed on the certificate of insurance. The Supreme Court, Appellate Division, Third Department, New York disagreed by reasoning that neither the certificate of insurance nor the policy included the names of any of the teams but instead listed only the league and its member teams.

Great American also argued that two separate policy exclusions would be applicable. The first was a Design Defect And Structural Maintenance Exclusion and the second was an exclusion stating that Additional Insureds were not covered for their sole negligence. However, the court reasoned that the latter exclusion could apply but said that the insurance carrier waived its right to use it as a defense since no written disclaimer was sent specifically mentioning their intent to use such exclusion.

In my opinion, had the carrier given proper notice, it is likely that they could have properly denied the claim for the additional insured field owner since the field owner was likely solely negligent in the slip and fall accident. The only way for the team to have shared in this negligence would have been due to lack of supervision or if the liability had been contractually assumed in a lease or license agreement.

 John Sadler

 Source: Rough Notes, February 2010

Presumably, the purpose of this exclusion is to protect the General Liability carrier against paying a claim in the event of collapse of bleachers or similar structures such as tents, signs, billboards, and fences that are temporary in nature.

Unfortunately, the exclusion does not define “temporary”.  Does “temporary” mean a one time event?  A season?  A Year?  Are any bleachers that can be moved considered temporary?

Bleacher collapse is a serious event in terms of both the number of spectators that can be injured and their severity potential.  Because of the seriousness of these bleacher collapse incidents, sports organizations can’t afford to have this ambiguous exclusion on their General Liability policy.

Source:  John Sadler