AYF: What you need to know before you apply for coverage

How to apply for Accident/General Liability if you are a conference, association, or single team

The highest entity, whether a conference or association, should always apply with a single application under its name and pay a premium on behalf of all teams. This is the only way to extend General Liability coverage to the highest entity and its respective directors and officers.

Conference: Apply with single application under the legal name of the conference, list the legal name of all associations as named insureds, and pay a premium on behalf of all teams of all associations. This provides coverage for the conference, associations, and all teams and their respective directors, officers, employees, and volunteers. Also, conferences that purchase insurance on 100% of teams under all associations will have automatic coverage at no additional charge for conference all-star teams and if hosting a regional championship.

Multi-team Association: Apply with a single application under the legal name of the association and pay a premium on behalf of all teams. When applying as an association, General Liability coverage is extended to the association, all teams, and respective directors and officers, but NOT to the conference and their respective directors and officers.

Single Team: when applying as a single team, coverage is not extended to the association or conference and their respective directors and officers. Unfortunately, there is no way to insure the association and conference and their respective directors and officers under General Liability if the individual teams are allowed to take out their own coverage.

Conferences and associations are required to buy Accident/General Liability insurance on 100% of their teams

The rate structure assumes that a premium will be paid on behalf of 100% of teams belonging to the applicant. Failure of the insurance carrier to collect a premium on 100% of the exposure at risk will result in massive future rate increases.

Don't try to game the system by under reporting the number of teams on your Accident/General Liability application

Attempting to save money by under reporting will jeopardize the payment of your claims and will hurt the integrity and competitiveness of the AYF insurance program

Whenever a claim is submitted, your claims adjuster will verify the age groups and number of teams for which insurance was purchased prior to paying a claim. The claims adjuster will check your website and/or social media as well as make an inquiry with AYF headquarters and compare the age group and number of teams against what was reported on your insurance application. Under reporting may result in a claim denial. Also, failure of the carrier to collect the appropriate premium for the risk exposure will degrade the loss experience of the program resulting in future rate increases.

Applying for Directors & Officers Liability if you are a conference or multi-team association

A conference may take out a single Directors & Officers Liability application that will cover the conference and all member associations if such associations are listed on the application as named insureds.

However, in the event of a lawsuit filed by an association against the conference, a policy exclusion may prohibit coverage for the conference for such lawsuits. As a result, some conferences may want to consider taking out separate Directors & Officers Liability applications for the conference and all associations.

Applying for Crime and Equipment coverage if you are a conference or multi team association

Conferences should not attempt to cover associations under a single Crime or Equipment application. Instead, the conference and each association should apply under separate applications.

Which of the 5 insurance policies do you need? Most need all of them.

Without a doubt you must be protected by both Accident and General Liability whether you are a conference, multi team association, or single team. This is a requirement of membership in AYF.

Also, all conferences, multi team associations, and teams should be protected by Directors & Officers Liability insurance because of the escalation in lawsuit types that are not covered by General Liability such as discrimination based on race, sex, age, or handicap; failure to follow own rules or bylaws when making a decision such as player eligibility dispute; and wrongful suspension or termination of staff or players.

A Crime policy is a must for conferences, multi-team associations, and teams that maintain bank accounts and credit card accounts. Any organization that does not have appropriate financial checks and balances on these accounts is ripe for insider embezzlement, use of league account to make personal purchases, or theft of equipment. Unfortunately, insider embezzlement happens too frequently in youth sports organizations due to lack of financial controls.

Any conference, multi-team association, or single team that has significant equipment values at risk in the event of fire, wind, outsider theft, or vandalism should purchase Equipment insurance.