Dizzy Dean Baseball
DIZZY DEAN SPORTS INSURANCE PLAN FAQ
The Application Process
Directors & Officers Liability
What are the differences between the various insurance policies such as Accident, General Liability, Directors & Officers Liability, Crime, and Equipment?
The best place to go to get a "crash course" in sports insurance basics is under the Risk Management section of the Dizzy Dean Insurance Plan website by clicking on the Free Reports icon. We recommend the Risk Management entitled "How To Avoid The 7 Deadly Sins When Buying Sports Insurance".
The $50,000 Accident policy pays medical bills on behalf of injured participants. It does not have a deductible. The coverage is "excess" which means that other collectable insurance such as parent's health insurance must respond first before the "excess" Accident policy will pay any bills. In the event that there is no existing insurance in force on the injured participant, the "excess" Accident policy become "primary" and pays up to the limit of $50,000.
The $2,000,000 General Liability policy protects the sports organization and its people against lawsuits alleging injury to a spectator or player. This policy provides an attorney for your defense and will pay up to the policy limit in the event of settlement or jury verdict.
The $1,000,000 Directors & Officers Liability policy ($2,000,000 limit available) protects the sports organization and its people against lawsuits alleging discrimination based on age, sex, race, or handicap; wrongful suspension or termination of league personnel or players; failure to follow your own rules or by-laws when making a decision; and other similar alleged violations of someone's federal, state, or constitutional rights.
The $25,000 Crime policy protects a sports organization against a monetary loss caused by theft or embezzlement by its volunteers.
The Equipment policy protects the property of the sports organization such as sports equipment, field maintenance equipment, and small storage sheds against loss caused by perils such as fire, windstorm, theft, vandalism, etc.
Is our sports organization required to purchase all of the policies including Accident/General Liability, Directors & Officers Liability, Crime, and Equipment?
No, the only policy that must be purchased is the Accident/General Liability policy. Under this insurance plan, these two policies are combined into one policy and there is no way to separately purchase the Accident or the General Liability on a stand-alone basis.
Once the Accident/General Liability policy has been purchased, the other policies may be purchased on an optional basis. Please note that the Directors & Officers Liability, Crime, and Equipment policies cannot be purchased unless your sports organization purchases the Accident/General Liability policy through Sadler & Company.
Are higher limits of coverage available?
No, the limit of $50,000 on the Accident and $2,000,000 on the General Liability are the only limits available under this plan. If you are required to carry a higher limit, call Sadler & Company for other options.
If we are taking out the coverage under the name of our league, are we required to purchase insurance for all teams that participate within the league?
Yes, if it is your intent to apply for the coverage in the name of your league, you are required to pay a premium on behalf of all teams within your league.
The reason for this requirement is that the General Liability policy protects the league and its officers and directors in addition to team volunteers. Since the league and its officers and directors will be a target in virtually any lawsuit, a premium must be collected for all teams that participate under the league.
Is it possible to insure an individual team as opposed to the entire league?
Yes, it is possible to insure an individual team if the insurance is applied for under the name of the individual team.
It is not permissible to insure a single team if the application is taken out under the name of the entire league.
We strongly recommend that the insurance is taken out in the name of the entire league and a premium is paid for all teams participating on behalf of the league. This is the only way to extend General Liability coverage to protect the league entity itself and the directors, officers, and other league volunteers who are not connected to a particular team. In today's litigation conscience society, the risks are just too high of a volunteer losing everything in a lawsuit.
How long does coverage last?
Coverage starts the later of February 1, or the date the enrollment form is received and approved, concurrent with the payment of the entire premium. All coverages expire on February 1 of the following year.
hat if new teams are added after we have applied for coverage?
If new teams are added at any time after the original application date, it is required that a new premium be paid on their behalf. You can print an Add-Delete Teams form from our website at www.sadlersports.com/dizzy under the Service For Current Clients section.
What if my sports organization only wants to buy Accident insurance and is not interested in General Liability or the other coverages?
It is not permissible to purchase the Accident coverage under this program on a stand alone basis. For this reason, you must call Sadler & Company at 1-800-622-7370 to receive a quote through a different insurance plan if you are only interested in purchasing Accident coverage.
Do the insurance policies provide coverage for accidents and lawsuits that arise out of travel to another state?
Yes, coverage is provided anywhere in the United States as long as the event is league sanctioned and adult supervised and not otherwise excluded by the policy.
Is coverage provided in the event that our league has several all-star teams that travel and play other teams outside our league?
Yes, coverage is provided for your travel teams playing away from your premises as long as the activity is league sanctioned and adult supervised.
What if a single team from outside of our league travels to our league to play a single game?
Coverage is provided for your sports organization for such a competition when a single team from outside your sports organization travels to compete against a team within your sports organization. However, the Accident/General Liability coverages are not extended to protect the players and volunteers from the other team.
Does the policy provide protection in the event that our league hosts a tournament?
Yes, there is coverage for your sports organization but such coverage is not extended to protect the players and volunteers of the other teams.
Is coverage provided if my sports organization conducts a sports camp or clinic?
In the event that such a sports camp or clinic is conducted only with your organization's participants, this is automatically covered at no additional charge.
On the other hand, if your sports organization conducts a sports camp or clinic and members of the public outside of your sports organization are invited, such activities are not covered by this plan. It is recommended that you visit the Sadler & Company website and purchase the special coverage for Sports Camps And Clinics.
THE APPLICATION PROCESS
Once my sports organization applies for coverage, how long does it take for coverage to become effective?
If applying for coverage online through our website, coverage is effective immediately upon completion of the online enrollment after the website has accepted your check. An email verifying evidence of coverage will be immediately sent back to the applicant.
If applying for coverage by fax, coverage is effective upon receipt of the fully completed application and check for the correct premium amount at Sadler & Company. When faxing a check, simply make the check payable to Sadler & Company in the correct amount, sign it, photocopy it, and fax the photocopy. Keep the original check for your records.
If applying for coverage by mail, coverage is effective upon receipt at Sadler & Company. Please note that the sole determining factor of the effective date is receipt at Sadler & Company and not the postmark date on the envelope.
Once my sports organization has applied for coverage through Sadler & Company, how long will it take for us to receive our proof of coverage certificates and claim forms?
As a general rule once the fully completed and signed application and check for the correct premium amount are received at Sadler & Company via Email, Fax or U.S. mail, you should receive your proof of coverage documents within 10 business days via Email or U.S. Mail.
On the other hand, if you apply with our online option, you can immediately print your proof of coverage documents and will receive an email with links to your documents for future reference. Save this email so that you can reprint or issue additional certificates of insurance at a later date.
What if I don't know the exact number of teams that will be participating prior to applying for coverage?
Very few sports organizations know the exact number of teams prior to the application process. It is suggested that you complete the application based on your best guess estimates and pay the appropriate premium amount. Once your application has been processed, you will receive an Add/Delete form that will allow you to adjust your figures after your roster has been finalized. If you initially underestimated the number of teams, an additional premium will be owed with the Add/Delete form. On the other hand, if you initially overestimated the number of teams, you will receive a refund after forwarding your Add/Delete form to Sadler & Company. (Requests to delete teams must be received within 2 months of your effective date.)
Is the total premium due up front or can it be financed?
The total premium is due with your initial application and cannot be financed.
Can I make my payment by credit card?
No, but you can make payment online by using a checking account.
Accident Insurance Questions
Is the Accident insurance coverage "excess"?
Yes, the Accident coverage is "excess" and requires other collectable insurance (such as parent's health insurance) to respond first before the "excess" Accident policy will pay any benefits.
Does the Accident Plan contain a deductible?
No, the Dizzy Dean insurance plan does not have a deductible.
If existing insurance coverage is through an HMO, PPO, or similar arrangement, is the person filing the claim required to follow the HMO or PPO rules for obtaining benefits?
Yes, failure to follow the HMO or PPO rules for obtaining benefits can result in a reduction of any potential amounts paid under the "excess" Accident policy.
Who are covered persons under the policy?
Covered persons include athletes, coaches, managers, officials, employees, volunteers and VIP's of the participating Dizzy Dean League.
What type of travel is covered under this policy?
Coverage is provided for adult supervised group travel as authorized by the policyholder directly to and from a covered event.
How do we turn in a claim in the event that a participant is injured?
Claim forms can be printed from our website at www.sadlersports.com/dizzy under the Service for Current Clients section The authorized team official must complete Parts 1 and 3 of the claim form verifying that the injury occurred during a sanctioned event as well as the section asking specific questions about how the injury occurred. The parent must complete part 2 of the claim form. The parent should then submit all three parts of the claim form to American Specialty Insurance & Risk Services, Inc. (the address is on the claim form) where it is processed. All claim questions should be directed to American Specialty Insurance at the phone number that is printed on the claim form.
GENERAL LIABILITY INSURANCE QUESTIONS
Who is covered by the General Liability policy?
Coverage is provided for the sports organization itself, its directors, officers and volunteers including but not limited to coaches, managers, umpires, scorekeepers, concession workers, field maintenance workers, etc.
What activities are covered?
As a general rule, coverage is provided for all sports organization sanctioned and adult supervised tryouts, practices, games, outings, and tournaments.
What are some examples of activities or events that are not covered by the General Liability policy?
- The following activities and devices: bungee, trampoline, animals, water slides, moonwalks, moon bounce, rock climbing, and climbing walls.
- Dances and concerts used for fundraising when the attendance exceeds 2000 attendees. Call Sadler & Company prior to such dances and concerts as coverage may be added for an additional premium charge.
- Events where alcoholic beverages are served where either 1) a charge is made for the alcoholic beverage or 2) a permit or license is required by a governmental entity to be taken out in the name of the sports organization. Call Sadler & Company prior to such an event as liquor liability coverage may be added for an additional premium charge (the minimum premium will be at least $500.)
- Sports camps & clinics involving participants outside of your sports organization are not covered unless a separate policy is purchased through Sadler & Company.
Does the policy provide coverage for lawsuits alleging sexual abuse and molestation?
Yes, coverage is specifically provided for sexual abuse/molestation in the amount of $1,000,000 each occurrence, subject to a $4,000,000 aggregate for all teams/leagues participating under the entire program. Such coverage usually provides protection for the innocent board of directors and officers who are shot gunned into these lawsuits for negligent failure to screen out an abuser with a criminal record or failure to appropriately respond to an allegation of abuse/molestation. There is no coverage for the actual proven in fact abuser/molester or anyone who remains passive upon gaining knowledge of an incident.
No coverage will be provided for abuse or molestation if there is no system in place to perform at least one of the following background checks on all your employees, volunteers or subcontracted labor with repeated access to youth: a) internet sexual offender registry check for your state on an annual basis, or b) criminal background check through a third party vendor. This check must be performed once upon initial employment, subcontracting, or volunteering and at least once every third year on each person thereafter.
Are Players and Parents Required to Sign Waiver/Release Agreements?
No, this is not a requirement but is a strong recommendation. The signing of waiver/release agreements is quickly becoming a universal requirement for organized sports participation. Waiver/release forms are now required by virtually every municipal recreation department, YMCA, and health club in the U.S. as a precondition for participation. Private sports leagues should take note of this and follow their lead.
Waiver/release agreements give some protection to the insured sports organization and its covered persons against a litigation system that is out of control as evidenced by numerous frivolous lawsuits and outrageously excessive jury verdicts. While waiver/release agreements may not result in the immediate dismissal of a lawsuit where a minor is involved, they will likely reduce the amount of the settlement or jury verdict costs by up to 35%. This is of great value to you and your insurance company.
What if a parent balks at signing a waiver/release?
If your league has required the signing of a waiver/release by all parents and players (which we strongly recommend), you should hold firm on your requirement and not make exceptions for the few parents who may complain. It has been our experience that a waiver/release requirement will not drive participants away.
Should a parent complain or ask questions, you should cover the following "talking points":
1) The litigation system in the U.S. is out of control with too many frivolous lawsuits being filed and with outrageously excessive jury awards. These excessive jury awards are scaring sports organizations into settling cases that lack merit.
2) The cost of legal defense and run away settlements and jury verdicts can drive up the cost of insurance to unaffordable levels and this can threaten the future survival of sports organizations and the availability of volunteers upon which they depend.
3) Requiring players and their parents to sign a waiver/release form helps to equalize the fairness in the legal system since players and parents must acknowledge that participation in sports does have some element of risk that cannot be totally controlled and that they assume this risk. In other words, the sports organization will do its best to provide a safe environment, but freak accidents do happen where no one is really to blame.
4) Signing a waiver/release agreement does not necessarily mean that they cannot collect damages in a lawsuit because most courts will not give waiver/release agreements full weight. The typical outcome in the context of an injury to a minor is that the use of waiver/release agreements reduces the amount of damages that are owed by up to 35%.
5) Almost all municipal recreation departments, YMCAs, and health clubs in the U.S. require the singing of a waiver/release form prior to participation and private sports organizations are now following their lead.
DIRECTORS & OFFICERS LIABILITY INSURANCE QUESTIONS
What is the difference between the Directors & Officers Liability policy and a General Liability policy?
This issue has caused quite a bit of confusion over the years. It is important to note that both policies cover exactly the same entities and people: the sports organization itself and its directors, officers, employees, and volunteers. However, each policy protects against a different type of lawsuit.
The General Liability policy primarily protects against covered lawsuits alleging the sports organization and its people have negligently caused "bodily injury" to a spectator or player. The policy also provides protection against other types of covered lawsuits such as "property damage" and "personal injury" which includes slander and libel.
On the other hand, the Directors & Officers Liability policy protects against certain types of lawsuits that are not covered by the General Liability policy. The types of lawsuits that the Directors & Officers Liability policy is meant to cover include those alleging purely economic damages or that someone's rights have been violated under state, federal or constitutional law. Examples of potentially covered lawsuits under this policy include discrimination based on race, sex, age, or handicap; wrongful suspension or termination of league personnel or players; a league's failure to follow its own rules or by-laws when making an administrative decision; managerial negligence resulting in bankruptcy for the sports organization; and failure to maintain adequate insurance.
If my sports organization is really only interested in protecting its directors & officers, why can't it just purchase the Directors & Officers Liability policy for $300 instead of spending all of the money that is required to purchase Accident//General Liability insurance on all participants?
There are a number of reasons why this thinking is flawed. First, since the Directors & Officers Liability policy does not cover "bodily injury," "property damage," and "personal injury," it is still necessary to purchase a General Liability policy to protect the directors and officers against these types of lawsuits. For example, the directors and officers can be sued in the event of injury to a spectator or a player. Second, in order to qualify to purchase the Directors & Officers Liability policy, the General Liability must be purchased through Sadler & Company. Why must a General Liability policy be purchased through Sadler & Company before a league can purchase the Directors & Officers Liability policy? The reason is that the Directors & Officers Liability policy could potentially cover a lawsuit alleging that the board of directors was negligent in failure to purchase Accident or General Liability insurance. As a result, the insurance company will not offer the Directors & Officers Liability policy unless such coverages are already in place.
Is it important for my sports organization to renew its Directors & Officers Liability policy prior to its expiration date each year?
Yes, since your Directors & Officers Liability is a "claims made" policy, it is essential that there not be any lapse in coverage on the renewal. If there is a lapse in coverage, this can result in your protection being voided in the event that an incident that arose in the past does not result in lawsuit papers being filed until after your renewal.
CRIME INSURANCE QUESTIONS
What exactly does a Crime Insurance policy cover?
This policy protects the local sports organization against a monetary loss caused by theft of money, securities, or other property (equipment, machinery, concession supplies) by dishonest volunteers. This includes forgery by an identifiable officer or volunteer. Coverage is also provided for theft of money or securities by outsiders. This policy does not cover vandalism or theft of property by outsiders. See the optional equipment coverage if such protection is desired.
Do volunteers really steal money from organizations that serve children?
Yes, this happens much more often than anyone would like to believe. As a matter of fact, our office receives about twenty (20) phone calls per year from leagues that have lost substantial amounts of money due to theft by volunteers. It is relatively easy for a dishonest volunteer to steal from a youth sports organization since such organizations don't have the necessary financial controls in place like most businesses do. For example, most sports organizations have inadequate safeguards for handling cash, don't require countersignature of checks, and allow the monthly bank statement to be reconciled by someone who is also authorized to deposit or withdraw.
Is it important that the Crime policy be renewed prior to its expiration date each year?
Yes, it is absolutely essential that the Crime policy be renewed without a lapse in coverage. A lapse in coverage under this policy can void coverage for past thefts that have not yet been identified if the claim is filed after the policy renewal date.
EQUIPMENT INSURANCE QUESTIONS
What does the Equipment policy cover?
Items that can be covered include sports equipment, field maintenance equipment, concession stand equipment, concession stock, or small storage sheds that your league leases/rents. The coverage is for loss or damage to your equipment due fire, theft, vandalism, or other specified causes (subject to actual policy terms and conditions). Payment will be made on replacement cost basis.
When setting the value for our equipment coverage, should we insure all of our equipment and should we choose an amount equal to book value (includes depreciation) or replacement cost value?
Because your policy has a 100% co-insurance requirement, you are obligated to insure 100% of your equipment. In addition, the values that you set must be based on replacement cost valuation. This means that you should insure the equipment for an amount that would replace such equipment with a brand new piece of equipment at today's prices. Failure to meet the policy's 100% co-insurance requirement based on replacement cost can result in a reduced payout when a claim is filed for a partial loss.
Is it possible to insure items like bleachers, scoreboards, and fences?
Yes, even though these items are more similar to buildings as opposed to equipment, it is permissible to insure them under the policy. Please make sure that they are individually scheduled if their value exceeds $1,000 per item.
The plan description in the brochure indicates that it is permissible to insure small storage sheds. Is it also permissible to insure larger building with higher values?
In some cases it is permissible; however, please call Sadler & Company at 1-800-622-7370 to discuss such buildings on a case-by-case basis.