Sports Accident insurance pays covered medical expenses on behalf of injured participants such as players, coaches, managers, umpires, etc.
Coverage is normally excess or secondary, which requires other collectible insurance such as family health insurance to respond first. There are three basic scenarios that can arise under excess Accident insurance:
1. If existing family insurance pays for 100% of all medical bills, the excess Accident policy will not make payment for any benefits.
2. If existing family insurance pays for only 80% of all medical bills (due to its deductible or coinsurance provisions), the excess Accident policy will pay for the remaining 20% less any deductible or other policy limitations.
3. If existing family insurance in not in existence, the excess Accident policy becomes primary and pays covered benefits less any deductible or other policy limitations.
The existence of excess Accident insurance on all participants is the first line of defense against lawsuits arising from injuries to sports participants. Much of the incentive for an injured participant or parent to file a lawsuit is removed if either existing family health insurance or the excess Accident policy will guarantee that no out of pocket medical bills will be incurred.
Uncovered medical bills will ultimately result in nasty dunning letters and collection phone calls being made to the responsible party. This will usually lead to a visit to an attorney to discuss what options are available. Of course, the attorney will recommend that a lawsuit is filed against a deep pocket: the sports organization and its directors, officers, and volunteers.
This is the reason why the few General Liability carriers that are willing to insure sports organizations require the existence of Accident insurance as a pre condition of coverage.
Source: John Sadler
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