Archive for the ‘Recreation Departments’ Category

Insurance Policies Needed by Sports Organizations

The minimum needed for maximum benefit

Because many sports organizations are run by volunteers, they are often under-insured. Insufficient insurance coverage may be a by-product of money-saving efforts or simply a matter of not understanding the risks of exposure to the athletes, coaches, staff and volunteers, and board members

Below is a list of the most important insurance policies that may be needed by community-based sports organizations such as teams, leagues, and municipal recreation departments.
  1. Accident: Pays medical bills on behalf of injured participants such as players and staff.
  2.  General Liability: responds to lawsuits arising from bodily injury, property damage, personal/advertising injury.
  3. Directors & Officers Liability (AKA Trustees Errors & Omissions for municipal recreation departments): Responds to certain lawsuitSports orginizationss not covered by General Liability such as discrimination, wrongful suspension or termination, failure to follow your own rules or bylaws, and violation of rights of others under state, federal, or constitutional law.
  4. Property/Equipment: Covers your buildings, equipment, and contents against loss due to fire, vandalism, theft, etc.
  5. Crime: Covers employee or volunteer embezzlement of funds or theft of property; forgery or alteration of checks by outsiders, and theft of money and securities by outsiders.
  6. Workers’ Compensation: May be required by state law if three or more employees and pays benefits to injured workers for “on the job” injuries including medical bills, lost wages, disability lump sums, disfigurement lump sums, and death benefits.
  7. Business Auto: Covers liability and physical damage to owned, non owned, and hired autos.
  8. Consult with your insurance agent about other types of policies such as Liquor Liability, Cyber Liability, Media, etc.

We provide more detailed information on each of these policy types and insider tips on purchasing insurance in our article, 7 Critical Mistakes to Avoid When Buying Sports Insurance. If you have questions or want assistance in deciding which policies your organization needs, call us at (800) 622-7370.

Copyright 2002-20014, Sadler & Company, Inc.

The Gamble of Being Underinsured

The risks can be catastrophic

Being underinsured is just as big a mistake as being uninsured. It’s no secret that insurance is one of those necessary purchases that buyers resent. But it’s also no secret that purchasing the correct coverage has protected countless people and organizations from potentially catastrophic financial circumstances.

Sports organizations are often run by volunteers who aren’t aware of the potential risks to which their league and players are exposed. This often results in lack of coverage – for all the wrong reasons. Thinking ahead is your insurance agent’s job. He or she has seen it all and knows anything can happen to anyone at any time.

What’s behind the lack of insurance?

Many sports administrators mistakenly believe that they don’t need to buy Accident and General Liability insurance to cover their sports programs for various reasons. After more than 25 years in the sports insurance industry, I’ve heard every excuse in the world for such decisions. Here are the top four:

  • “We’ve never experienced a serious injury or lawsuit.”  The fact is that sports lawsuits tend to be infrequent but have a high potential for severity in terms of potential damages owed. Some sports organizations may go over five years without a serious incident, but it’s just a matter of time.
  •  “Our waiver/release forms will prevent lawsuits.” The use of a well-drafted waiver/release form is a great tool under some circumstances. However, it won’t prevent a lawsuit from being filed. Even if the waiver/release does result in the lawsuit eventually being dismissed, it may still cost $10,000 to $20,000 in legal defense fees to get to that point.
  •  “Volunteer immunity statutes will prevent lawsuits.” State and federal volunteer immunity statutes are a positive step in the right direction. However, they typically have too many loopholes and exceptions that limit their effectiveness. For example, most immunity statutes exempt protection in the event of grossly negligent behavior, willful or wanton conduct, or the reckless disregard for the safety of others. Most lawsuits make these allegations and the judge has to sort out if they have any merit. All this takes time, and the more time it takes to sort this out, the greater the legal fees. In addition, these statutes don’t protect paid staff and the sports organization as an entity itself.
  •  “Our employees/volunteers/administrators provide their own liability policies.” Many sports organizations will leave it up to the individual volunteers or administrators to protect themselves through Homeowner’s Liability, Personal Umbrella, or Coach Certification Liability policies. This can be a dangerous strategy for many reasons. Homeowner’s Liability and Personal Umbrella policies may include an exclusion for lawsuits arising out of activities of the insured person as a sports volunteer. Furthermore, they won’t protect against the non-bodily injury or non-property damage lawsuits that a Directors & Officers policy may protect against such as discrimination, wrongful termination, failure to follow own rules or bylaws, etc.

The insurance policies sports organizations need

Below is a list of the most important insurance policies that most community-based sports organizations such as teams, leagues, and municipal recreation departments should carry.

  • Accident insurance pays medical bills on behalf of injured participants.
  • General Liability responds to lawsuits arising from bodily injury, property damage, and personal/advertising injury.
  • Directors & Officers Liability (or Trustees Errors & Omissions for municipal recreation departments) responds to certain lawsuits not covered by General Liability, such as discrimination, wrongful suspension or termination, failure to follow your own ruGambling diceles/bylaws, and violation of rights of others under state, federal, or constitutional law.
  • Property/Equipment insurance covers buildings, contents and equipment against loss due to fire, vandalism, theft, etc.
  • Crime insurance covers employee or volunteer embezzlement of funds or theft of property; forgery or alteration of checks by outsiders, and theft of money and securities by outsiders.
  • Workers’ Compensation may be required by state law for organizations with three or more employees. It pays benefits to injured workers for on-the-job injuries including medical bills, lost wages, disability lump sums, disfigurement lump sums, and death benefits.
  • Business Auto insurance covers liability and physical damage to owned, non-owned, and hired autos.

There are other types of policies that some organizations may require. For much more detailed information on this topic, please see 7 Critical Mistakes to Avoid When Buying Sports Insurance.

For assistance in determining which policies your organization needs, to have your questions answered, or to receive a quote, please call us at (800) 622-7370.

 

Is Your Team/League Adequately Insured?

Find out with our minimum requirement checklist

How do you know for sure that your team/league sports insurance policies provide the coverage you need to protect against devastating lawsuits? Many local insurance agents and even so called sports insurance specialists are guilty of offering inadequate coverages.

Minimum standards for sports insurance have been set by a sports insurance expert, risk manager, and attorney John Sadler of Sadler Sports and Recreation Insurance. These standards are outlined in two separate checkChecklistlists, one for private teams/leagues that purchase their own insurance one for teams/leagues with insurance provided by a municipal recreation department. Feel free to use our Sports Organization Insurance Checklist and Municipal Recreation Department Insurance Checklist.

Sports administrators no longer need to frustrate themselves trying to determine what coverage and limits are necessary. They can simply submit the checklist to their insurance agent for completion. The insurance agent then checks off whether each standard has been met and signs his or her name.

Once the completed checklist has been received, administrators then can decide what to do based on the results. If your team/league hasn’t met the the mandatory standards, your insurance agent should  remedy the problem or you should find a new insurance agent who can offer policies that meet the minimum standards.

Visit our team and league insurance page for more information on coverage or to get a quote. Or call us at (800) 622-7370!


Copyright 2017, Sadler & Company, Inc. All rights reserved.

 

AEDs and Liability in Public Schools

Will sympathy impact legislation?   

Too many communities have grieved debilitating injuries or premature deaths of high school athletes due to cardiac events. Many schools maintain automatic external defibrillators (AEDs) in an effort to prevent such tragedies.

 There are no federal mandates regarding AEDs in public schools. Colorado, Florida, Georgia, Illinois, Iowa , Maryland, Michigan, Nevada, New Jersey, New York, Ohio, Pennsylvania, South Carolina, Virginia and Wisconsin have passed legislation requiring some schools to maintain portable defibrillators.  California and Tennessee encourages placement in public schools.

But a debate has started over whether public schools can be held liable if the AEDs are not used. This stems from a lawsuit that will go before the Florida Supreme Court sometime this year.

What set the ball in motion

When an East County High School soccer player collapsed on the field, school personnel called 911 and performed CPR while waiting for emergency responders. The AED on campus was not utilized. Although paramedics were able to revive the student with a defibrillator and medication, he suffered severe brain damage and is in a vegetative state.

 The lawsuit argues that that the school district is liable. Lower courts found in favor of the school district, acknowledging that the school is legally obligated to try to help any student who becomes injured or ill on school grounds but not to authorize or direct specific treatment such as the use of an AED.

Florida ruling could have huge impact

If the Florida Supreme Court overturns the lower court ruling, there is potential for every youth sports facility or program to be affected. This includes both public and private facilities and programs, such as those run by school districts, local and state governments, parks and universities.

If this occurs, the next question will be whether AED training will be required of paid and volunteer coaches, referees, and organizers or risk being sued in the event of an episode such as the one in the current suit. And will these organizations be required to purchase other medical devices and provide training to avoid liability? And, of course, this could affect the cost of Liability Insurance, as typically is the case when claims are made.


Source: Mark Miller and Deborah J. LaFetra, “Fla. Lawsuit Set to Define Schools’ Legal Duty to Use AEDs,” Tampa Tribune.  16 Apri 2014

Crossing the Foul Line

HIV-positive player kicked out of rec basketball league

A 21-year-old player on a Kissammee Parks and Recreations basketball team was told he could not participate in the league. A part-time recreation leader confronted Dakota Basinger mid-game, asking if he was HIV-positive. When Basinger replied that he is, the employee then told him he was not permitted to continue the game or play in the league.

A spokesperson for the city’s Parks and recreation department stated that the worker had specifically been told not to approach Basinger and did so without supervisor approval.

Should players with HIV / AIDS be allowed to participate in youth sports leagues? Find out in our article  Read our article HIV in Youth Sports.
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Sport injuries off the field

The Independent Contractor or Subcontractor Limitation

Services such as concessions umpires, security, field maintenance and janitorial are typically outsourced by sport and recreation organizations as independent contractors or subcontractors.

The Independent Contractor or Subcontractor Limitation endorsement on a General Liability policy can have adverse consequences for sports and recreation organizations.

Don’t play around with independent contractors

The negligent actions of these independent contractors or subcontractors can result in the sports organization being shot gunned into a lawsuit.

The Independent Contractor or Subcontractor Limitation endorsement will preclude coverage unless the independent contractor or subcontractor maintains a General Liability policy at the time of injury, with limits equal to the sports organization while naming such sports organization as “Additional Insured.”

Protecting the organization

It is highly recommended that sports organizations require all independent contractors and subcontractors to provide evidence of General Liability insurance with limits of at least $1,000,000 combined single limits. Such policies should name the sports organization as “additional insured.”

However, General Liability coverage of the sports organization being contingent on the insurance requirement of the independent contractor or subcontractor is a risky proposition.  If the sports organization is diligent about administrative duties, an uninsured independent contractor or subcontractor could easily slip between the cracks.  In addition, a certificate of insurance is only an indication of coverage status as of the date of its issuance. Coverage could later be canceled due to nonpayment of premium with no absolute notification requirement to certificate holders.

For the reasons outlined above, it is not acceptable to allow the existence of the Independent Contractor and Subcontractor Limitation endorsement on the General Liability policy for a sports organization.

Source:  John Sadler

Assault and Battery Exclusion in Sports

Employees and volunteers vulnerable

 

Some sports General Liability policies have an endorsement entitled Assault and Battery Exclusion that modifies the terms of the original policy language.

 

The standard policy form (without the Assault And Battery Exclusion) contains an intentional injury exclusion that includes an exception for the use of reasonable force to protect persons or property.

 

The Assault and Battery Exclusion takes away coverage for any assault and battery incident committed by your employees, volunteers, or any other person.  In addition, coverage is excluded for failure to suppress or prevent an incident as well as for negligent hiring, supervision, or training.

 

Based on some of the claims filed against our team and league clients over the years, the Assault and Battery Exclusion would have had unacceptable coverage consequences had it been in existence.

 

We have seen several lawsuits alleging assault and battery resulting from a coach attempting to break up a fight.  In one incident, a coach broke up a fight by pulling one 8-year-old boy off of another.  The lawsuit alleging assault and battery claimed that the coach injured the boy that he pulled off the top of the other boy.

 

We have also seen a number of other lawsuits against leagues, volunteers, and administrators arising out of fights between coaches, umpires, and spectators.  In many cases, the coaches and umpires are actually the physical aggressors against spectators.In some of these cases, the plaintiff’s attorney ran a background check and found that the defendant had a criminal background involving a crime of physical violence.  As a result, the sports organization and its board were shot gunned into the lawsuit under the theory of negligent hiring.

 

The above common examples would likely trigger the Assault And Battery exclusion resulting in no insurance coverage and the possible taking of both assets of the sports organization as well as personal assets of the individual defendants to satisfy the judgment.

 

In my opinion, the Assault and Battery Exclusion should be removed from a sports or recreation General Liability policy.

 

Source:  John Sadler

Photo credit: Guiseppe Barranco/The Enterprise

Insurance Requirements for Rec Facility Users

Reduce liability exposure with proper collection of certificates of insurance

Facility user groups such as teams, leagues, tournament hosts, camps, instructors, and special event operators must carry adequate insurance. In addition to providing the proper coverage, Sadler Sports Insurance can assist you in reducing your liability by:

    • setting minimum insurance limits and coverage standards that adequately protect the recreation department
    • providing a simple free checklist tool to assist in verifying insurance compliance
    • referring uninsured facility users to a specific web page where they can get an instant quote,  instantly pay, and bind coverage  without any delays or hassles. Their delays and hassles become your delays and hassles.
    • setting your recreation department up in our system so that the certificates of insurance meet your special wording requirements every time, which cuts down on your frustration over certificates that don’t meet your requirements.

The video below walks you through the process in more detail.

A Reality Check for Youth Sports Administrators

Learn from the Paterno, Spanier, Curley and McQuery mistakes

This blog post isn’t specifically about the Penn State case and who was or wasn’t fired. Rather it’s a reality check for all involved with youth: no one is invincible. Joe Paterno, Graham Spanier, Tim Curley and Mike McQuery did not commit the physical crimes against children that Jerry Sandusky did.  However, they were responsible and liable for their own actions when there is even a hint that someone is abusing a child.

The Penn State case is making national headlines because of its legendary coach and its football program, but it’s important to understand that such behavior occurs frequently in youth sports.  Most readers of this blog are involved in teams/leagues/youth programs in sYouth sports risk managementome capacity or another. Are you a coach, athletic director, team mom or a parent on the sidelines?  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 costs.

Our previous blog post, Child Predators in Youth Sports, is a must read for anyone who is involved with children. It includes a link to a Sports Illustrated article written with the help of actual predators in youth programs detailing how they got away with their crimes. Did you know that, according to the article, studies have found that the average molester victimizes about 120 children before he is caught? That’s extremely disturbing! The blog post also offers useful risk management guidelines that your organization can implement today. And share this post with others so that we all can make a difference.

Follow this link for more articles on preventing sexual abuse and molestation.

Why Do Field/Facility Owners Require Being Named on Sports Insurance Policies?

Field / facility owners such as recreation departments, school districts, schools, and municipalities often allow outside user groups to use their premises under a lease or permit. These relationships are beneficial to all parties involved. However, field / facility owners expose themselves and their insurance carriers to liability arising from injuries that may occur on the premises arising out of the lease or permit. This is true even though the injury may be due to the 100% negligence of the outside user group.

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.