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AGENTS & BROKERS ONLY |
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Other Sports & Recreation Insurance Programs |
What Should a League Do If a Registered Sex Offender is a Parent or Spectator?In many of our national organizations, criminal background checks of coaches and volunteers are required in order to screen for sexual offenders. Throughout our risk management materials you will find that regardless of a requirement, these screenings are highly recommended. But what should a league do when the known sex offender (per public record) is a parent or a spectator? The first direction would be to consult your local attorney since they would be familiar with the particular states laws. Also make sure that the organization is following its own rules and bylaws. The general liability policies that we write for the national organizations may require that volunteers be screened, but not the parents that are not volunteers. This is because as a general rule, only a volunteer who has repeated access to youth is in a position to “groom” them for molestation. Whether background checks are required or not, a lot can be accomplished by educating the team/league, the volunteers and the parents on inappropriate boundary invasions. More information can be found in our article Protecting Children Against Sexual Abuse and Molestation. Sports Insurance For Sexual Abuse and MolestationPart Two
Insurance carriers that write General Liability insurance for sports and recreation organizations take two approaches to covering lawsuits alleging sexual abuse and molestation. Some carriers’ policy forms remain silent on the issue of coverage under the theory that it is covered if it is not excluded. This is usually true; however, some state case law may reach a contrary conclusion. However, most policy forms provide an affirmative grant of coverage for sexual abuse and molestation via a special endorsement.
For example, many carriers provide an endorsement that provides sex abuse and molestation coverage in the amount of $1,000,000 Each Occurrence and $1,000,000 Aggregate. Furthermore, the endorsement will usually include a laundry list of exclusions such as for the perpetrator himself, for remaining passive after an incident has come to the attention of management, etc.
Some policy forms may void sexual abuse and molestation coverage if the sports organization has not implemented a written procedure requiring a background check on all staff with access to youth.
In the event that a policyholder is a larger state, regional, or national organization with its own custom program, it needs to be verified whether the Sex Abuse and Molestation Aggregate applies to the entire program or separately to each individual named insured such as a league or club. Obviously, it is best if the Aggregate applies separately to each league or club.
Source: John Sadler
Copyright 2004-2009, Sadler and Company, Inc. All Rights Reserved
Sexual Abuse and Molestation Insurance For Sports OrganizationsPart One
Sexual abuse and molestation has been a huge issue in youth sports insurance over the past ten years. The sports insurance carriers that write General Liability have been decimated with a number of large settlements and adverse jury verdicts.
As a result, most carriers are not willing to extend coverage for abuse / molestation unless risk management controls are in place. In other cases, the coverage is only available by tapping into custom programs for larger governing and sanctioning bodies that have significant negotiating power.
Coverage for abuse / molestation is important because all directors and officers will be sued in addition to the alleged abuser. The directors and officers will be sued on the basis of failure to screen out staff with criminal backgrounds, failure to respond to an allegation, and failure to implement policies and procedures such as the use of a “buddy system” and a prohibition of overnight sleepovers whenever possible.
As a precondition of coverage, many insurance carriers will require mandatory background checks on all staff with access to youth as well as the adoption of a risk management awareness program.
For more information on the various types of background checks and the strengths and weaknesses of each: www.sadlersports.com/riskmanagement/
For more information on a simplified Abuse/Molestation Protection Program: www.sadlersports.com/riskmanagement/
Source: John Sadler
Copyright 2004-2009 Sadler & Company, Inc. All Rights Reserved
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