Sanctioning/Governing Associations Archives - Sadler Sports & Recreation Insurance

Archive for the ‘Sanctioning/Governing Associations’ Category

2026 Insurance Program Released for American Youth Football

The Gold Standard That Is The Envy Of The Competition

The American Youth Football and American Youth Cheer endorsed insurance provider, Sadler Sports Insurance, has released the new 2026 insurance program for teams /associations /conferences, which will be applicable for all new and renewal enrollments with effective dates 3-01-2026 and later.

The 2026 program is, once again, the gold standard in youth football and cheer insurance with an unbeatable combination of low rates, broad custom coverages, and best-in-industry automation that allows instant online enrollment and issuance of proof of coverage documents and certificates for field owners. But that’s not all: the program also provides best-in-industry risk management resources to prevent injuries before they become claims and for compliance with various federal and state laws. In addition, 97% of our clients grade our customer service as “A”. That’s important because at some point during the policy year, clients will have coverage questions, need to add additional teams, need assistance with risk management resources, or will need to issue a certificate with special wording.

Apply, Pay, and Print Proof of Coverage Documents and Certificates in as Little as 10 Minutes

Our advanced automation is so simple and fast that you can complete the entire insurance purchase transaction and print all your documents in as little as 10 minutes. Many competitors require the completion of forms and days of waiting just to get a quote. Then, once the quote is bound, it can take several days to get the proof of coverage documents and certificates for field owners. Or, they could charge $100 extra for next-day rush delivery.

We have a feature that allows the prior years’ information, including the certificate holder list, to be pre-populated so that information does not need to be input again. This results in huge time savings.

After the purchase, we provide our clients access to our website so that they can self-issue certificates for new field owners 24/7. It’s so easy, and our clients love this benefit.

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Competitors Withdraw From The Market or Take Major Rate Increases

Many of our competitors have taken major increases over the past several years due to sexual abuse/molestation and concussion litigation, as well as other losses. However, our program remains stable with March 1, 2026, rates offered with no rate change from the prior year.

Child Abuse Risk Management Plan Required By Federal Law and Insurance Carrier

The federal Safe Sport Act applies to all sports organizations either directly or indirectly and requires mandatory reporting of a “suspicion” to law enforcement within 24 hours; written policies to make an incident less likely to occur; and mandatory education for both adult staff and minors on the different types or child abuse, how to prevent the sexual grooming process and how to report a suspicion. Sadler provides a free child abuse risk management plan for your adoption that is Safe Sport Act compliant, called Safe Sport Child Abuse and Other Misconduct Risk Management Plan.

Furthermore, the $1M per occurrence Sex Abuse/Molestation coverage under the General Liability policy will be voided unless organizations have implemented a system to run criminal background checks, have written policies and procedures to make an incident less likely to occur, and have a written requirement to notify law enforcement in the event of suspicion. Our free Safe Sport-compliant risk management plan will satisfy written requirements. See our insurance plan description for additional information.

What is Being Done to Combat The Risk of Concussion/Brain Injury And Related Litigation?

Sadler Sports Insurance provides a sample Football/Cheer Concussion Awareness Risk Management Program that is strongly recommended for all teams/associations/conferences. This free program can be found under the risk management section of our AYF Insurance page. This program consolidates accepted risk management practices for easy board adoption and implementation. We recommend coaches complete the AYF coaching education program. Certification is required of head football and cheer coaches participating in AYF national championships. We also encourage coaches, volunteers, and players to complete the NFHS tackling course. It is important for all teams/associations/conferences to thicken their shields by adopting and fully implementing a comprehensive concussion/brain injury risk management program. The future of our sports depends on this action, and it’s the right thing to do to protect the kids.

Check Out Our New Risk Management Reports

We developed the following risk management reports to keep our clients up to date in critical areas:

Sudden Cardiac Arrest (SCA) Risk Management. SCA is the leading cause of death for student athletes while exercising. Administrators and coaches need to be prepared to take immediate life-saving action.

New Sports Anti-Violence Risk Management. Sports violence and related lawsuits against organizations are at risk. Learn how to greatly reduce the risk with the use of zero-tolerance policies, codes of conduct, and serious sanctions.

Guide To Preventing Heat Stroke Death In Youth Tackle Football. This comprehensive awareness training article was produced as a result of a recent heat illness death.

New Safe Sport Act Applies To Most Amateur Sports Organizations. This new federal act, signed into law in February of 2018, increases the standard of care required to protect youth against child abuse, molestation, and other forms of misconduct.

Parade Float Risk Management For Sports Organizations. Two of our largest claims have arisen out of parade float accidents where participants have fallen from floats and have been run over, resulting in significant injuries. This article will help to reduce the risk of future parade float accidents.

Managing Charter Bus Risk For Sports Organizations. This is a must-read for any conference/association hiring a charter bus.

Sample AYF/AYC Risk Management Plan

Our recently updated Sample AYF/AYC Risk Management Plan pulls together all of our best risk management content just for youth football and cheer. Be sure to adopt, implement, and distribute this critical plan or a similar comprehensive plan. This plan is password-protected and only available for current AYF/AYC insurance clients.

Be a Part of Groundbreaking Injury Studies

If you purchase your insurance through the endorsed insurance program, all Accident claims automatically become part of the database where our custom software analyzes the information to produce meaningful injury reports. This has led to groundbreaking studies on the comparison of injuries in age-only vs. age/weight categories and the incidence of concussions within AYF/AYC.

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AYF/AYC Member Benefits: Check out the list of impressive AYF/AYC membership benefits.

Please visit our webpage at www.sadlersports.com/ayf or call us at 800-622-7370 if you have any questions.

Sports / Rec Sanctioning and Governing Body Risk Management Checklist

National, regional, and state sports and recreation associations unite local clubs, leagues, and chapters under one umbrella—providing structure, standards, and support across their territory. But being a governing or sanctioning body carries risk. One serious injury in a remote affiliate can create ripple effects that jeopardize the entire organization’s reputation and finances.

Whether you govern youth baseball, swim leagues, or multi-sport federations, comprehensive risk management isn’t optional—it’s essential.

Why Sanctioning/Governing Bodies Face Unique Liability Risks

Unlike local programs, governing associations may be held liable for incidents that occur anywhere in their network. Legal exposure increases when:

Your name or logo appears on waivers, promotional materials, or member websites.
You collect dues or registration fees from local member affiliates.
You provide standardized training, safety procedures, or certifications.
You require insurance, but don’t verify proper coverage.
You don’t provide a risk management program
You do provide a risk management program that guarantees safety

Courts have ruled that governing associations can be held liable for local injuries—even when they weren’t directly involved. This is especially true when there’s evidence of oversight or control over affiliates, even if it’s just through rules or safety programs.

Top Risks for Governing Associations (and How to Manage Them)

1. Injuries and Participant Claims

Spectator and participant injuries remain the most common source of lawsuits—and governing associations can get pulled in. The most common allegation is a lack of general supervision, which encompasses failure to adopt and implement a comprehensive risk management plan.

Mitigation Tactics:

• Require affiliates to carry General Liability and Participant Accident Insurance that meets minimum requirements.

• Centralize affiliate insurance coverage through master policies for uniform protection.

• Use mandatory participant waiver/release forms.

• Provide ongoing risk management training for local leaders and coaches.

• Add a provision to membership agreements disclaiming “operational control” (See Sadler Insurance for assistance).

2. Administrator, Volunteer, and Staff Negligence

Well-meaning volunteers can unintentionally create liability—especially when working with youth.

Best Practices:

• Mandatory coach training/certification on both youth development and sport-specific techniques.

• Standardized codes of conduct for administrators and coaches.

• A written risk management plan covering:

• Facilities and equipment safety

• Supervision and instruction

• Sports injury care

• Child abuse prevention

• Concussion and sudden cardiac arrest

• Auto safety, and more (See Sadler Insurance for assistance)

• Ensure your risk management plan does not increase liability by avoiding common mistakes (See Sadler Insurance for guidance).

3. Event Liability and Facility Hazards

Events like tournaments and showcases introduce risk from injuries, property damage, and weather disruptions.

Prevention Tools:

• Obtain certificates of insurance from host facilities and vendors.

• Carefully inspect host facilities for safety issues.

• Use event safety checklists and crowd management protocols.

• Set up weather monitoring systems and cancellation policies.

• Note: Sex abuse risks increase during travel with overnight stays.

4. Sex Abuse & Molestation (SAM) Claims for Youth Sports

SAM is the biggest liability exposure for youth sports organizations and has devastated the insurance industry.

Solution:

• The governing body and affiliates must comply with the federal Safe Sport Act.

• Conduct mandatory criminal background checks on all adults with youth access.

• Maintain a written SAM risk management plan addressing:

• Educational training to prevent grooming

• “Two-deep leadership” to ensure no single adult is alone with a child

• Mandatory reporting to law enforcement in the event of suspicion

Contract Review: A Must-Have Risk Management Practice

One of the most overlooked areas of risk is contract management and contractual transfer. Failing to review and negotiate terms can leave your organization exposed.

Key Contract Review Focus Areas:

Transfer of Risk through:

• Signed Waiver/Release Agreements from participants

• Indemnification and Hold Harmless Clauses

• Minimum insurance requirements (Accident and General Liability) with additional insured status for the governing association

• Member risk management requirements, including compliance with the Safe Sport Act, concussion laws, and risk management plans

• Include a provision in membership agreements clarifying lack of “operational control” (See Sadler Insurance for details)

Insurance Audit for Governing Associations

• Use a comprehensive sports insurance checklist

• Verify all essential policies are carried

• Confirm policy limits are sufficient

• Eliminate dangerous coverage loopholes

• Disclose uncovered risks and buybacks

• Negotiate custom coverage enhancements

Pro Tip:

Have your insurance agent and attorney review third-party contracts, including:

Membership agreements with affiliate teams/individuals
Tournament host agreements
Rental agreements with facility owners
Sponsor/vendor agreements (ensure proper insurance and indemnification provisions)

Goal: Distribute liability fairly and avoid unknowingly assuming risk.

Why a National Insurance Program is Essential

Without centralized coverage, some affiliates may be underinsured—or uninsured.

A national program:

• Offers group purchasing savings based on the loss history of the group

• Provides uniform protection with adequate limits, closed loopholes, and custom coverage

• Simplifies administration with online enrollment, certificate issuance, and compliance tracking

Sadler Sports Insurance offers tailored programs for national governing bodies and their affiliates—delivering peace of mind and cost-efficiency.

Leadership Includes Liability Planning—and The Sadler Advantage

If you manage a national/regional/state sports or recreation association, you’re already a leader. But leadership also means planning for the worst before it happens. Proactive risk management and robust insurance coverage will protect your programs, people, and mission.

For over 35 years, John Sadler has been a sports insurance expert and risk manager for over 30 national associations. His legal background provides added insight into liability and contract analysis.

Protect Your Network Before the Next Season Begins

Get a free, no-obligation analysis of your association’s risk management and insurance program by contacting Sadler Insurance.

See more details on our insurance and risk management services for association sanctioning and governing bodies.

Sports / Event Insurance for Terrorism, Active Shooter, and Civil Unrest

Las Vegas incident could be tipping point for revamped insurance and risk management

Ever-increasing threats involving terrorism, active shooters, civil unrest and other malicious acts bring to light the need for new, more comprehensive insurance coverage forms. They also prove the need for pre-event and post-event risk management.

As a result of the Las Vegas incident, gone are the days when sports / event administrators can just hope for the best. Sports and recreation events with large numbers of participants / spectators in public settings are ripe targets for malicious actors. As a result, these organizations must start to purchase appropriate insurance and follow risk management best practices when addressing these threats.

The rise in incidents

Active shooter is the most recent peril to gain widespread media attention. This is due to its increasing frequency, ease of planning / execution, and difficulty in prevention. The Department of Homeland Security’s (DHS) definition of an active shooter is “…an individual actively engaged in killing or attempting to kill people in a confined and populated area; in most cases, active shooters use firearms(s) and there is no pattern or method to their selection of victims.”

According to the Advanced Law Enforcement Rapid Response Training Center, active shooter events increased from 5.2 per year from 2000 to 2008 to 15.8 events per year from 2009-2012. The figure rose to an average of 20 incidents per year in 2014 and 2015, according to the FBI. Most of these events occurred on business, school, and government properties. However, the Las Vegas incident introduced sports and recreation venues as high-profile target areas.

Mass violence and civil unrest perils represent the potential for many types of losses to sports and recreation organizations

Liability for failure to have a risk management plan, failure to respond, inadequate on-site security, inadequate on-site medical personnel, fencing too high to escape, etc. resulting in bodily injury to participants, spectators, employees, independent contractors, vendors, and other members of the public. The potential for damages are astronomical due to the large number of people at risk.

Property damage to premises and clean-up expenses. Property damage may result from bullet holes, bomb blasts, fire, vandalism, and contamination. Clean up may include removal of bodies, blood, debris, and contaminants.

Public relations expenses and post-event counseling expenses due to emotional and psychological duress.

Loss of income from the event and future events, both at the same location and all locations.

Loss of reputation resulting in lost future revenues.

Meet the mass violence and disruption perils

Standard terrorism: Traditional terrorist attacks are large scale and highly coordinated. They typically target global corporations, buildings, transportation systems, and other infrastructure with bomb blasts. A new type of ISIS-inspired terrorism emerged in recent years with smaller, lone-wolf type attacks. These include the use of trucks to run through crowds and small arms and knife attacks. Terrorists attempt to intimidate, coerce, or harm a civilian population or government.

Chemical, biological, radioactive terrorism: Terrorists can cause catastrophic loss of life, property damage, and financial loss from chemical, biological, and dirty bomb terrorism. Even the mere threat of these types of terrorism incidents can cause massive losses due to closures, evacuations, and postponements while the threat is being investigated.

Cyber terrorism: Terrorists may employ cyber attacks on a government’s infrastructure, industrial controls, banking system, hospitals, etc., resulting in property damage and business interruption.

Active shooter: Active shooters are typically single assailants who attack large groups in confined spaces. They have no connection to their victims and are not motivated by terrorist causes.

Civil unrest: A disruption in the social order involving a group of people engaging in protests, riots, and strikes, which may result in violence, property damage, and loss of revenue.

Impairment of access: Acts or mere threats of violence can prevent employees or customers from accessing work sites, resulting in financial loss. Impairment may result from terrorism, civil unrest, strike, or government cordon at either the employer’s location, adjacent locations, or within a certain mile radius.

What insurance coverages are required to protect against mass violence and disruptions?

The types of common insurance policies that can come into play after a mass violence or disruption incident are Workers’ Compensation, General Liability, Excess Liability, Property (direct damage and loss of business income), Cyber Risk, Event Cancellation, and Active Shooter insurance.

Workers’ Compensation and Employer’s Liability

Workers’ Compensation responds to job-related injuries to employees or uninsured subcontractors. It covers medical bills, lost wages, and lump-sum awards for disabilities, disfigurements and death benefits. Uninjured employees who witness a malicious act event may qualify for benefits due to post traumatic stress disorder (PTSD). Workers’ Compensation is typically the exclusive remedy for an injured worker. But some scenarios may arise where employers can be sued directly for failure to respond to specific threat warnings prior to an event. There is no terrorism exclusion under a Workers’ Comp policy.

General Liability

The standard General Liability policy form carried by most sports and recreation organizations will likely respond to most claims alleging failure of the organization to prevent or adequately respond to an incident resulting in bodily injury or property damage. Note that the policy’s each-occurrence and/or aggregate limit may not be adequate to pay the types of extreme damages that may result when multiple individuals are killed or seriously injured.

General Liability policies may contain an exclusion for certified acts of terrorism as defined by the Terrorism Risk Insurance Act (TRIA) unless the buyback has been selected with the additional premium paid. Opting for the buyback, which is relatively inexpensive, is strongly recommended. To be a certified act of terrorism under TRIA, all property & casualty insurance losses must exceed $5 million and an effort made to coerce a civilian population of the U.S. or influence the conduct of the U.S. government.

Excess Liability / Umbrella

Excess Liability insurance extends the liability limits of the underlying General Liability policy in increments of $1 million, depending on the policy limits purchased. The same coverage considerations that apply to General Liability also apply to Excess Liability. Excess Liability policies may contain the TRIA exclusion for certified acts of terrorism. In addition, some carriers may apply an additional exclusion for non-certified acts of terrorism. This could eliminate coverage for smaller scale terrorist events and active shooter situations. Sports organizations should strongly consider opting for the buyback from certified acts of terrorism under TRIA. They should also consider negotiating with their carrier to remove any exclusion for non-certified acts of terrorism.

Property and Business Interruption

Property insurance policies may pay for direct damage to buildings and contents from a covered malicious act attack. They may also cover indirect damage, which includes loss of business income and extra expense.

Coverage for business interruption is only triggered if there is a direct physical damage loss under the policy. Organizations should also consider a business income buyback for losses stemming from actions by a civil authority to prevent or limit access. This commonly occurs after a malicious act as the location will be considered a crime scene. Business interruption insurance is a complicated coverage. As a result, if a loss occurs, organizations should hire an expert to assist with the filing of a claim to maximize recovery.

Certified acts of terrorism under TRIA can be covered if the buyback is selected and the additional premium paid. However, even with TRIA, the standard war exclusion will not be removed and additional exclusions may exist for nuclear, biological, chemical, and radiological (NBCR), depending on the state.

Cyber Risk

Cyber extortionists can shut down computer systems with denial-of-service attacks and other cyber-extortion schemes. Terrorists can hack into systems causing direct damage to equipment, software programs, and data. Cyber Risk policies can pay for the following direct damages to the policyholder: extortion or ransom costs; restoration costs of lost data, information, and programming; and business interruption and extra expense resulting from failure of computer systems.

Cyber Risk policies can also pay for liability costs resulting from hacking, breach of confidential data and related credit monitoring costs.

Event Cancellation Insurance and Enhancements

Due to the limitations of standard property & casualty insurance policies, we advise sports organizations hosting events purchase Event Cancellation insurance with appropriate coverage enhancements.

Traditional Event Cancellation policies may cover loss of business income due to adverse weather; venue unavailability from perils such as fire, collapse, gas leaks, and flood; wildfires, earthquakes; loss or power or communications; communicable disease; non-appearance of key speaker or entertainer; and national mourning.

Additional endorsements may be available to cover loss of business income due to terrorism; sabotage; active shooter, chemical, biological, radioactive or nuclear (CBNR) terrorism; war, civil war, and political subversion; strikes, riots, and civil commotion; political intimidating; and national mourning. Some carriers may extend coverage to mere threat of many of these perils.

Active Shooter Insurance

New specialty forms have emerged for stand-alone Active Shooter Insurance. If this coverage can’t be endorsed onto an Event Cancellation Policy for loss of revenues, sports / event administrators should consider an Active Shooter policy. Also, Active Shooter policies offer a liability limit. The most common coverages and benefits are as follows:

Primary Liability with limits ranging from $500,000 to $25,000,000 to cover allegations of negligence from harm caused by attacks using deadly weapons. Even if existing General Liability and Excess Liability policies respond to these allegations, such limits may not be high enough to cover potential damages in an active shooter situation. As a result, a high-limit Active Shooter policy may be a more cost effective way to increase protection.
Pre-event services, such as security vulnerability assessment, preparedness seminars, and training modules.
Post-event services, including crisis management, advising on emergency communications, emergency call center, and counseling.

Pre-event risk management training for active shooter

Pre-event risk management for active shooter situations is becoming commonplace in educational, business, and governmental settings. Training staff on how to exit, resist, or fight can buy time for law enforcement to arrive.

One respected source of training is the ALICE Training Institute, which focuses its online training module on the following:

Alert: Recognizing danger, first notification to those at risk and law enforcement

Lockdown: Secure in place if unable to evacuate or prepare to evacuate or counter

Inform: Notify law enforcement or others at risk in real time if possible

Counter: Interrupt intruder plans and objectives

Evacuate: Move from danger when safe to do so

ALICE provides client-specific training with a plan geared towards particular locations. In the context of sports and event incidents, the two preferred techniques are usually alert and evacuation.

How to get a quote for Event Cancellation and Active Shooter

For more information on Event Cancellation and Active Shooter insurance and risk management please complete our Contact Us form or call 800-622-7370 and ask for our sports department.

6 Tech Tips for Sports Organizations

Keeping you technologically safe and running smoothly

Almost every youth sports organization has a paid employee or volunteer who is responsible for managing the organization’s website, accounting system, databases, registration system, game and tournament schedules, employee and volunteer work schedules and maybe even social media accounts.

Incoming and current technical managers can benefit from the tips below on efficiency and security offered below.

Take stock of the technology you have. The first step in maintaining safe and functional technology is knowing exactly what you have. Set up a spreadsheet of all your software and hardware systems. Record the product names and versions, where each was purchased and contract end dates. You’ll have all the information you need in one place – preferably where others in the organization can access it if necessary.

Talk to your predecessor. If you’re the incoming tech manager, make sure to have a conversation with the outgoing manager and pick his/her brains about any past or present problems, potential upgrades, and any glitches in the operation. It’s critical that you obtain all the login information for your systems, programs and websites. It’s just as important to know who else has access to this information and to change passwords that former administrators, staff or volunteers may have. This includes revoking administrator privileges to the outgoing director.

Where is everything?It’s important to learn where all the organization’s data is stored – both electronic and paper. If possible, scan paper files into PDF format for online storage. The organization’s data should not be stored on anyone’s personal computer. If multiple users need access, consider using Google Drive, Microsoft OneDrive, DropBox or another cloud service. They’re more secure, accessible from anywhere, and free!

You are your website. Maybe your responsibilities include maintaining the association’s website and managing its social media accounts.Your website is the face of your organization. Review it with a keen eye and see what needs updated and delete anything not related to the current or next year. Make sure it’s mobile responsive, which means the layout and images can be viewed correctly on a tablet or smart phone. Make sure your site is secure, with at least 256-bit encryption.
Think twice about letting a player’s parent offer to build and host a website and link it to your social media as an act of goodwill or a money-saving effort. All too frequently these helpful people become less eager or simply disappear as they change jobs, their kids age out of the program, move, or simply become too busy. Depending on such a person to get your website up and continuing to run smoothly can be disastrous. Better to rely on a company that provides technical and customer service when you need it.

Get feedback. Who, other than parents, coaches and board members, would know what’s working and what isn’t? No one! Take the time to ask them if they’re experiencing problems registering players, making payments, etc. Ask if they have suggestions for improvement. Consider emailing a survey asking for feedback. You may not be able to implement all the suggestions, but being a good listener, taking their complaints seriously, and attending to issues quickly calms frustrations and builds trust.
As the tech director, you’ll be one of the most sought after people in your association. Therefore, document everything you do in a spreadsheet, from dates of technical repairs to conversations with vendors. You’ll be glad you did when someone raises questions and you have the answers at your fingertips.

Liability Concerns from websites and social media. And finally, you must protect yourself from your liabilities arising from breach of confidential information due to a hacker attack, invasion of privacy, and a libelous posts on your website or social media. These risks are not adequately covered by most General Liability policies due to various exclusions. Many Directors & Officers Liability policies are now offering coverage extensions with sub limits of coverage to address these risks. Or, a stand-alone Cyber Risk policy may be purchased for associations with heavy exposure. Contact Sadler Sports & Recreation insurance for more information on these policies.

Source: Paul Langhorst. “8 Tips for the New Sports Association Technology Director.” www.engagesports.com. 29 Oct., 2015.

Sports & Rec Association Insurance Programs

Protect Your National Organization and Members against Catastrophic Lawsuits with the Most Cost-effective Insurance and Risk Management Solutions!

4 Major Liability and Insurance Concerns

Whenever we talk to state/regional/national sports and recreation organizations about their insurance and risk management programs, most have the following major concerns:

Embarrassment of a High-dollar Lawsuit but Not Having the Proper Insurance Coverage.
No director or officer wants to be remembered like the captain who sank the Titanic. We’ve witnessed numerous little-known icebergs over the past 25 years that a vigilant insurance agent could have prevented.
Being Personally Wiped Out in a Lawsuit. When there is a lawsuit, lawyers often go after the individual officers and directors in addition to the sports organization. Are you 100% sure that if your sports organization is sued, your home, retirement, savings account, or your children’s education funds won’t be on the chopping block?
Wanting to Prove Your Value to Your Members by Offering an Outstanding Insurance Plan.
Simply put, you want the best possible coverage for the lowest possible cost.
Offsetting Association Expenses.
Your organization can earn an administrative or marketing fee (if allowed by state law) by performing certain non-insurance services related to your endorsed insurance plan.

What You Need To Know Before You Solicit Quotes For Your Insurance Program

5 Step Insurance Process For Sports And Recreation Organizations – You will need an insurance agent with qualifications and experience in the sports niche to walk you through this process. You need more than just a salesman.

The Problem With The Traditional Insurance Bidding Process – Read this before you select more than one insurance agent for a sports insurance quote.

How To Choose A Sports Insurance Agent / Broker – See the qualifications you should look for when selecting the one insurance agent to market your account.

How To Know If You Are Paying A Fair Sports Insurance Premium – You don’t necessarily need to market your account to find out if you are paying a fair price for your insurance. Learn the simple metrics that underwriters use to determine if your rates are adequate.

Has Your Insurance Agent Provided These Services?

Have you ever had a meeting with your insurance agent that went like this?

Your agent discussed the 8 different insurance policies that all national sports and recreation organizations must have to protect the organization and the personal assets of the directors and officers.
Your agent explained that 78% of all uncovered claims result from little-known coverage loopholes that can best be detected by using a customized checklist. All of your policies under this checklist were scrutinized, and the different types of property losses and lawsuits that are not covered under your insurance program were disclosed to you.
For each of these coverage loopholes that could have a catastrophic impact on your organization’s or your personal finances, you were offered a quote to add these additional coverages, if insurance was available at all, or offered non-insurance solutions. Based on this information, you were able to make the decisions that were in the best interest of your organization.
The agent read all of your important contracts with a critical eye, including lease agreements with landlords and facility owners, tournament host agreements, membership agreements, approved supplier agreements, bylaws, articles of incorporation, rulebooks, safety programs, etc. He or she pointed out all provisions that exceeded your insurance coverages and where you have unfairly assumed the liability of another party through an indemnification agreement. He or she suggested how to reword certain provisions to pass the risk of loss to a third party whenever feasible and offered to negotiate this on your behalf.
The agent revealed troublesome provisions that have resulted in unnecessary problems or lawsuits for his or her other sports organization clients. He or she even recommended a new paragraph that could be added to your rules or policies and procedures manual, which could instantly result in your being dropped from many lawsuits.
Your agent reviewed how your members could access a team of nationally recognized and respected sports risk management specialists who could offer free advice on issues ranging from ADA compliance for handicapped participants to sexual abuse/molestation.
Your agent discussed offering customized risk management programs for your members to help prevent injuries and to minimize lawsuit risks, and how a written risk management program “thickens” your shield and shows a judge and jury how much you care.
Your injury reporting procedures were reviewed, and the agent explained how most claims administrators don’t collect the proper data on the Accident claim form about an injury to provide you with meaningful information on how they can be prevented. He or she set up and designed a proper injury survey and agreed to track the results on your behalf.
If your sports organization has youth members, your agent offered to customize and implement a simple Sexual Abuse/Molestation protection program that includes all of the necessary forms. He or she explained how such a program shows a judge and jury how much you care and “thickens” your shield.
Your agent offered to create a special website that explains all of your basic coverages, optional coverages, frequently asked questions, and customer service options, such as requesting a claim form or adding an “Additional Insured,” and which contains an online application if your program is an optional participation. Furthermore, as a matter of convenience, he or she explained how payments can be made with an Internet or faxed check.

If you have not had this type of meeting with your agent, perhaps it’s time to contact John Sadler at Sadler & Company.

Some of Our Current Clients

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American Youth Football
Big Shots Basketball
Dixie Youth Baseball
DB Baseball
Dixie Softball
Dizzy Dean Baseball
National Field Archery Association
National Alliance for Youth Sports
National Youth Sports Coaches Association
Upward Sports

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Men’s Senior Baseball League
National Junior Basketball League
United States Youth Cricket
USA Canoe/Kayak
SC High School League
SC Independent Schools Association
American Canoe Association
Louisiana Youth Soccer Association
Sportsplex Operators and Developers Association[/ezcol_1half_end]

We Have Never Been Fired by a Major Client in Over 35 Years!

“We could not pass on the opportunity to express our sincerest gratitude to you and your company. The knowledge, support, and honesty that we have enjoyed while working with you have been a genuine pleasure. Over the years, you have saved us significant funds that have been used to advance our organizational mission. The advice you have offered has been invaluable, no-nonsense, straightforward, and on-target, making sure that we have what we need at the best possible price. Your interest in telling us what we need to hear, even if it might cost you a contract, is so rare in your industry that Sadler and Company stands out as a real friend to non-profit associations. You work so hard for your clients’ interests that there is no question your company will continue to be a driving force and key player in the sports insurance industry. We are very proud of our relationship and look forward to years of growing together.” – D. Michael Pfahl, President, DMP Consulting, Inc.

“Dixie Softball has had two major claims made against it… without the guidance of Sadler & Company, both cases would have spelled the end of DSI as a non-profit softball program for girls ages 5 to 18.” – Obie Evans, Dixie Softball, Inc.

Click Here to View Actual Testimonial Letters

Technology Services

Sadler & Company is the industry leader in developing online insurance quotes and certificate issuance engines that allow members of sports organizations to receive instant service.

For example, our sports team/league clients can visit our customized website, get a quote/proposal in seconds, apply for coverage, and pay with a credit card or check, and instantly receive proof-of-coverage documents within minutes.

Our websites can be customized to handle your team/league registration process concurrently with the insurance enrollment.

In a recent survey, members of a sports organization cited ease of doing business and speed of service as equally important as receiving competitive prices and broad coverage.

Call Sadler & Company at 800-622-7370 to request a “test drive” tour of existing sports programs that are taking advantage of this technology and loving it!

Carriers Represented

General Liability And Excess Liability	Accident
K & K Insurance Group (Nationwide, National Casualty, and Scottsdale)	Francis L. Dean
American Specialty	K & K (Nationwide, The Hartford)
AIG	AIG
Francis L. Dean	Chubb (ACE)
Bollinger (Markel)
Philadelphia Insurance Companies
Directors & Officers Liability	Property, Business, Auto, Workers’ Compensation
Philadelphia Insurance Companies	The Hartford
Chubb	AIG
AIG	Travelers
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Nationwide

Sadler & Company is a single source broker that can represent virtually every MGA or insurance carrier on your behalf that specializes in the sports and recreation niches.

Furthermore, these MGAs and insurance carriers are familiar with Sadler & Company and work hard on your behalf to provide you with the best combination of broad coverage and competitive prices.

Sadler provides the following exclusive audits that help to guarantee that you are receiving the best protection for the lowest possible cost:

Audit of insurance policies to uncover little-known exclusions and pitfalls that are commonly found in many sports and recreation insurance policies.
Audit of 31 different types of contracts and content entered into or used by most sports and recreation organizations. This audit protects you against not complying with the insurance requirements of others and unknowingly accepting risk of loss when such risk should be transferred to the other party to the contract.
Actuarial audit of your premiums to make sure that the rates are set at a level where the carrier is not gouging you or your members. Our sophisticated software models allow us to assess the correct pricing where you enjoy the absolute lowest cost while the insurance carriers are able to earn a small but reasonable profit.

Call John Sadler at (800) 622-7370 to request an appointment to learn how Sadler & Company will outthink and outwork the competition in providing you with peace of mind that you have obtained the best protection plan (both insurance and non-insurance) at the lowest possible cost delivered with astonishing attention to detail and flexibility.

Boundary Dispute Fells Little League Champs

When adults cheat, it’s the kids who pay

Fraud and cheating occur too frequently in government, business, education, mediaand, sadly, even youth sports organizations.

Little League stripped the Jackie Robinson West team of its U.S. championship and suspended its coach for violating the league’s team boundary rule. In what can only be called a team-building effort, team officials altered a league map that determines the areas from which players can be recruited.

In addition to the team being relieved of its international tournament wins, the team manager was suspended the administrator of Illinois District 4 was removed. But it was the players, who were unaware of the team’s manipulation, who paid the highest price. Mountain Ridge Little League was awarded the championship.

It was an agonizing decision but critical in upholding the integrity of Little League, according to Stephen Keener, Little League International president and CEO.

Over the past 10 years, a number of Sadler Sports Insurance sports league clients were sued over boundary disputes involving the eligibility of a particular player (usually a superstar). Disqualification of an ineligible player by a sanctioning body prior to a tournament can result in a legal challenge for injunctive relief asking to halt the tournament until the judge can rule on eligibility. Due to the legal expenses and inconvenience involved, it is recommended that sanctioning bodies have tight boundary rules that are not subject to alternate interpretations. And, of course, they must always follow their own rules when making a decision.

Source: Tom Farrey, “Little League punishes Chicago team,” espn.go.com. 11 Feb. 2015.

Sports Organization Management Concerns

Sanctioning/governing associations are responsible for wide range of insurance decisions

The directors and officers of sports and recreation organizations are entrusted with making important decisions about the selection of insurance brokers, insurance carriers, policies to be carried, the quality of coverages within each policy, and risk management services that are needed. In larger sports organizations, these decisions are not just made on behalf of the sports organization as an entity and its respective directors, officers, employees, and volunteers, but also on behalf of the individual members, teams, or clubs.

Organization decision makers should take into consideration each of the following concerns when researching a Property & Casualty insurance program:

Managerial Negligence: What could be more embarrassing than to learn a large lawsuit or property loss is not covered by the insurance program due to a lack of due diligence. The resulting financial hardship or bankruptcy will result in finger pointing. Failure to carry adequate insurance can result in litigation against directors and officers for managerial negligence.
Personal Liability: Whenever the sports organization as an entity is sued, directors and officers are often shotgunned into the lawsuit as individual defendants. To avoid personal liability, it’s important that the various liability policies adequately cover the individual directors and officers.
Membership Benefits: A strong member insurance program can aid in the recruitment and retention of members. This can be achieved by providing organization members an excellent insurance program that offers more competitive prices and broader coverages compared to what they could purchase individually.
Overpaying: To ensure the organization isn’t overpaying for its insurance policies, test the waters every few years by approaching different carriers about their programs and rates. Alternatively, ask your current insurance carrier to reduce rates when warranted by overall industry pricing trends and based on the organization’s history of loss.
Offset Expenses of the Organization: Many larger sports and recreation organizations want reimbursed for expenses incurred to promote the insurance program to their members. It is permissible in many states for sports organizations to receive a marketing fee in exchange for the performance of non-insurance services. However, organizations can’t cross the line by engaging in services that require an insurance license, such as approving applications or explaining coverages.

For more information on risk management best practices, visit our free risk management library.

Choosing a Sports Insurance Agent/Broker

Selection criteria for sports organizations

A prior blog post explained why sports and recreation organizations shouldn’t follow the traditional insurance bidding process of allowing multiple agents to approach the limited marketplace of insurance carriers and managing general agency (MGA)*. To follow-up on this, below are suggested selection criteria to choose the most qualified agent/broker so that such agent can approach the entire marketplace.

Insurance Agency Qualification Checklist:

Special department dedicated to sport and recreation insurance risks
Number and names of similar sports/recreation organizations insured
Premium volume of similar sports organizations insured
Carriers or MGAs represented for each policy type
Premium volume and special relationships with each carrier/MGA to be approached
Resumes of key servicing staff, including experience in sports/recreation insurance niche
Specific staff assigned to service account
Claims management services
Loss analysis, forecasting, and rate justification services
In-house authority to issue certificates of insurance
Injury-tracking services and automation
Training on employee injury reduction, premises safety, auto safety, special events safety, etc.
Special risk management services for sports and recreation organizations
Agency license for both Property & Casualty and Life and Accident, & Health for all states of organization’s operations
Website services including online enrollment, self-issuance of certificates of insurance, educational articles, risk management reports, forms, articles, programs, etc.

Insurance Agent Qualification Checklist:

Resume of insurance agent
Number of years of experience in insurance industry
Number of years dealing with sports and recreation accounts
Title or position within insurance agency
Ownership in insurance agency
Special training and designations such as CPCU, CIC, etc.
Producer license for both Property & Casualty and Life, Accident, & Health for all states of organization’s operations
Carriers/MGA’s to be approached for each policy type
Names and contact information of similar sports/recreation organization clients for reference check
Membership in professional trade organizations in insurance industry
Board of director positions or committee assignments on behalf of sports/recreation organizations
Publications on insurance and risk management on behalf of sports/recreation organizations
Number of proposed client meetings throughout year to review insurance and risk management programs
Renewal strategy philosophy
Disclosure of commissions and fees earned
Attendance at meetings trade shows or speaking engagements on behalf of organization

Carrier/MGA Qualification Checklist:

M. Best rating for financial strength
Number of years in sports/recreation insurance niche
Number of similar sports/recreation insurance clients
Premium volume of similar insurance clients
Names of similar sports/recreation insurance clients
Philosophy on acceptable loss ratios
Claims services offered
Risk management services offered
Licensed in all states where organization operates
Other services provided

*An MGA is an insurance organization that provides some of the services that are normally provided by insurance carriers in exchange for a fee. Examples of common MGA services include underwriting, policy issuance, loss control, claims administration, and marketing. The MGA as a middleman does not increase the cost of doing business since they provide services that the insurance carrier would be required to otherwise provide. Therefore, the existence of MGA’s reduces the expenses of the insurance carriers.

Problem Exclusions for Sports/Recreation Organizations

Tips for negotiating common problem exclusions in General Liability policies

Sports and recreation organizations and related sanctioning/governing associations often purchase General Liability insurance policies that include dangerous exclusions that could result in lack of legal defense and coverage to pay for settlements or adverse jury verdicts. This is why it is essential for a qualified and experienced insurance expert to actively negotiate with the carriers to remove or modify such exclusions.

All General Liability policies grant broad coverage for bodily injury and property damage caused by an occurrence under the insuring agreement that is found in the beginning of the policy. In addition, all General Liability policies use exclusions to remove coverage for certain situations that are deemed uninsurable for various reasons (ex: too risky, moral hazard, against public policy) or that should be insured under a different type of policy (ex: Workers’ Compensation, Auto, Property). The exclusions include both standard exclusions that are found in the exclusion section of the General Liability policy as well as exclusions that are found in endorsements (i.e. policy amendments) that are attached as pages near the end of the policy.

Below is a list of some of the most common problem exclusions for sports and recreation organizations that are found on General Liability policies. Every attempt should be made to negotiate the removal or modification of these exclusions to a more acceptable version. If negotiation does not yield acceptable results, serious consideration should be given to finding a new insurance carrier. However, this list is not all-inclusive as there are a number of other problem exclusions that are found less frequently.

Athletic or Sports Participants Exclusion

This exclusion takes away coverage for bodily injury to any person while practicing for or participating in any sports or athletic contest or exhibition that is sponsored by the insured.

Insurance carriers that don’t specialize in insuring sports organizations commonly use this exclusion to control what they perceive to be as an unacceptably high risk. Its existence often slips by insurance agents and risk managers who don’t carefully review the policy form or who aren’t aware that quality sports insurance coverages can be obtained through multiple sources.

The use of this exclusion for most sports and recreation organizations is totally unacceptable since athlete injuries and lawsuits are a common occurrence. Furthermore, sports and recreations organizations represent a severity risk since damages from catastrophic sports injuries can be high. The existence of this exclusion reduces an organization’s General Liability policy to what is commonly known as a spectator liability policy.

Knowledgeable underwriters lower the risk of paying General Liability claims for athletic participant injury lawsuits by mandating the existence of Accident Insurance (amateur sports), Workers’ Compensation Insurance (professional sports), and waiver/release forms. Please see our article “Are Waivers Worth the Paper They Are Written On?”

Participant vs. Participant Exclusion

This exclusion takes away coverage for instances when one participant sues another participant. Since participants are broadly defined, this could player vs. player, coach vs. coach, or player vs. coach. It’s important to note that most versions of this exclusion don’t penalize other parties that could be dragged into the lawsuit, such as the sport organization as an entity or the directors, officers, or other staff members.

Non-coverage for the all-too-common player vs. coach situations is a totally ridiculous exclusion that must be avoided. One negotiation strategy is to narrow the context of the Participant vs. Participant exclusion by changing it to a Player vs Player (or Athlete vs. Athlete) exclusion.

An argument can be made for the existence of a Player vs. Player exclusion as a disincentive in adult sports situations where one adult athlete recklessly endangers the safety of another adult athlete. However, it is becoming increasingly common for carriers to remove the Player vs. Player exclusion in youth sports. On the other hand, it could be argued that the Player vs. Player exclusion is not a problem in youth sports since youth players aren’t normally targets in lawsuits because they lack assets to satisfy judgments.

Volunteer vs. Volunteer Exclusion

The 2001 and later editions of the standard Insurance Services Office (ISO) General Liability policy form added what is commonly referred to as the Volunteer vs. Volunteer exclusion, which can have a detrimental and unexpected impact in the sports context. Lawsuits that may fall under the scope of this exclusion include coach vs. coach, umpire vs. coach, manager vs. coach, etc. It’s not uncommon for one coach to accidentally (but negligently) injure another coach during skills demonstrations or drills. For example, one of our youth baseball clients recently filed a claim for a lawsuit arising from batting practice where the head coach hit a ball that struck an assistant coach who was not paying attention. It’s possible to negotiate the removal or modification of this exclusion with many carriers.

Assault and Battery Exclusion

The standard ISO General Liability policy form has an exclusion for bodily injury or property damage expected or intended from the standpoint of the insured. However, this exclusion does not apply to bodily injury resulting from the use of reasonable force to protect persons or property.

When the Assaultand Battery exclusion is added to the policy, the exception is removed for the use of reasonable force to protect persons or property. This can result in some unexpected denials of coverage in the sports context. For example, a coach or umpire could be denied coverage for engaging in self-defense against an aggressor who is injured and files a lawsuit. Also, lawsuits have been filed against coaches who accidentally injured a participant while trying to break up a fight.

In addition, most versions of the Assault and Battery Exclusion specify that coverage does not apply to the insured (sports / recreation organization) for incidents committed by its employees, volunteers, or any other person; for failure to suppress or prevent an incident; or for negligent hiring, supervision, or training.

It’s common for the sports and recreation organization and its officers and board of directors to be named as defendants along with the staff member who allegedly committed the assault and battery. The most common theory of recovery is for negligent hiring when the accused staff member is found to have a criminal background that should have been an indication of a propensity for violence. This is another reason (other than the concern over sexual offender crimes) why staff members should be screened with background checks for suitability.

Warranty of Waiver/Release

Some General Liability policies may have a warranty provision that voids coverage in the event of a participant injury lawsuit if the sports or recreation organization can’t produce a signed and dated waiver/release agreement on behalf of the injured participant filing the lawsuit. Waiver/release agreements are to be strongly encouraged; however, many organizations don’t have strong administrative and record keeping procedures and it’s possible for a single document to slip between the cracks despite the best intentions of the administrators.

A less severe version of this warranty provision requires the organization merely to have a procedure in place for the collection of signed and dated waiver/release agreements on behalf of all participants. Such wording may not result in coverage denial in the event that a single waiver/release can’t be produced so long as there is evidence that a procedure was in place and there was a good faith attempt to administer such procedure. However, the wording of such warranty provisions must be carefully reviewed to gain a clear understanding of the requirements for coverage.

Punitive Damages Exclusion

Most summons and complaints (lawsuit papers) in the sports and recreation context for bodily injury incidents request punitive damages and refer to the lack of care by the negligent party as being grossly negligent, willful, wanton, and reckless. Proof of such extreme misconduct is necessary to support a claim for punitive damages. Punitive damages are damages over and above the regular compensatory damages such as medical expenses, lost income, pain and suffering, etc. Punitive damages are meant to punish and make an example of the grossly negligent party. Even though punitive damages are often difficult to prove, it does not makes sense for a General Liability policy to exclude punitive damages and subject the covered parties to needless worry.

Some states have case law or statutes that may not allow insurance carriers to insure punitive damages since it may be considered to be against public policy.

Sex Abuse/Molestation Exclusion

The Sex Abuse/Molestation exclusion endorsement is commonly used by underwriters for youth sports and recreation risks due to the difficulty in implementing adequate loss controls, the severity risk, and the risk of multiple claimants and incidents. This endorsement is usually attached near the end of the policy.

Other forms of child abuse are often included within the scope of this exclusion including physical abuse and emotional abuse. These often take the form of excessive exercise as punishment and verbal insults.

Sports and recreation organizations should always attempt to negotiate a buyback of this coverage and should stand ready to adopt and implement required loss controls. For more information on the abuse/molestation risk including specific risk management programs and training videos, please visit our risk management library.

Contractual Liability Limitation

Sports and recreation organizations frequently enter into contracts that include indemnification and hold harmless provisions where they assume the tort liability that would ordinarily belong to the other party to the contract. Such assumption of contractual liability can be covered under General Liability policies (depending on the exact wording of the provisions). However, General Liability policies that include the Contractual Liability Limitation Endorsement can take away this needed protection.

An example of the application of this exclusion would occur when a sports organization sends a travel team to play in a tournament and as part of the registration process, the sports organization signs an agreement with the tournament host that includes an unfavorable hold harmless/indemnification provision in favor of the tournament host. Such a provision may require the sports organization to assume all liability for injury to its players, even if arising out of the sole negligence of the tournament host. In the event that a player drowns during a tournament host sponsored and supervised swimming party, the sports organization may be legally responsible due to the contractual assumption of such liability. In such a circumstance, the Contractual Liability Limitation Endorsement could result in a claim denial that could have a devastating impact on the sports organization and its administrators and staff.

Collapse of Temporary Structure

Some General Liability policies may have a Collapse Of Temporary Structure Exclusion that can have the impact of removing coverage in the event of certain bleacher collapses. Bleacher collapses often involve multiple claimants with serious injuries. Whether or not a particular bleacher is temporary or permanent can be subject to debate. The insurance carrier may argue that any bleacher that is not permanently anchored or affixed is temporary.

Ownership/Maintenance/Management of Athletic Fields or Facilities Exclusion

This exclusion if often used by insurance carriers to limit their responsibility to pay for claims that arise out of incidents that occur during sanctioned and supervised operations or activities such as practices, games, tournaments, banquets, meetings, field work days, etc.

Such an exclusion would preclude coverage that arises out of the mere ownership, maintenance, or management of the athletic field or facility. Many serious injuries occur on property at times other than during sanctioned and supervised events. Athletic fields, if not properly secured, often draw members of the public who may participate in pick up games or who may play on playground equipment such as swings and slides. Property owners, lessors, and managers are often found to be liable when a premises related condition is the cause of the injury.

Field / facility owners and lessors (that are responsible for what happens 24/7 under the provisions of a lease agreement) need to verify that their General Liability policy covers the 24/7 ownership or management risk exposure.

Note: The coverage form referenced is ISO CG 00 01 12 07

The above list of problem exclusions is not all inclusive. Each General Liability policy must be carefully reviewed from cover to cover at every renewal to make sure that the underwriters have not slipped in an unacceptable exclusion.

Crime Insurance for Sports & Recreation Organizations

Employee/volunteer theft are more prevalent than many realize

Sports and recreation organizations can have significant assets at risk from the traditional employee or volunteer embezzlement and the modern perils of electronic fraud. Most sports organizations are not properly insured for these exposures and don’t have adequate risk management controls in place.

The Commercial Crime policy form (ISO CR 00 20 05 06 and CR 00 21 05 06) offers the following coverage parts that may be individually purchased:

Employee Dishonesty Provides coverage for employee theft of money, securities, or other property such as equipment. Employees are defined as regular employees, temporary workers, leased workers, trustees of employee benefit plans, interns, managers, directors, or trustees.

If applicable, it is critical that sports and recreation organizations request special endorsements to extend coverage to theft from volunteers, non-compensated officers and members of specified committees, specified directors and trustees on committees, partners, LLC members, computer software contractors, agents, brokers, or independent contractors.

It is also important to purchase Employee Dishonesty coverage on a blanket basis that protects against theft from all employees or others in a designated class as opposed to specified employees or others who must be individually named on the policy. Sports and recreation organizations experience a high rate of personnel turnover. It’s not uncommon for an organization to fail to update the list of specified employees.

Forgery and Alternation Provides coverage for forgery or alteration of a check, draft, or promissory note drawn against the insured’s accounts.

Money and Securities Provides coverage for theft, disappearance, or destruction of money and securities from either inside the premises/banking premises or outside the premises. Coverage may also be extended to robbery or safe burglary of other property.

Computer Fraud Provides coverage for financial loss due hacker access effecting a fraudulent transaction. An example of computer fraud occurs when company A sells services to company B. An employee of company B hacks into the computer of company A and changes the bank routing and account numbers. The next time a payment is made for services, the funds are fraudulently transferred to the employee instead of company A. According to a 2008 survey by Computer Security Institute, the average financial loss due to computer fraud was $289,000.

Electronic Funds Transfer Fraud Provides coverage for financial loss due to a hacker access to a financial institution, accessing an online account, and circumventing normal online authentication controls to affect a fraudulent wire transfer. An example of this type of fraud occurs when a hacker gains bank account and password information by planting a Trojan virus in an email attachment sent to a company bookkeeper. When the attachment is opened, a keyword logger is launched that secretly obtains account and password information. The hacker accesses the online banking system and completes a fraudulent electronic wire transfer. According to a 2008 survey by Computer Security Institute, the average financial loss due to funds transfer fraud was $500,000.

Money Orders and Counterfeiting Provides coverage due to loss by good faith acceptance of money orders that are not honored or counterfeit money.

Traditional Crime Risk Management Controls

Many smaller organizations are not run as serious businesses and as a result don’t have strong risk management controls to protect against employee and volunteer dishonesty. The key to preventing insider dishonesty is separation of duties so that no single person has total control over any one process or audit procedure. Below are recommended controls:

Require a countersignature on all checks or on checks over a certain amount.
The person who reconciles the bank account should not be authorized to deposit or withdraw funds.
If credit cards or debit cards are used, authorized users should not be tasked with reviewing the monthly statements.
Keep detailed inventory records of all equipment and require a log to be maintained when equipment is assigned or checked out.
Create an audit committee to review all financial records, account statements, and to take an inventory of all equipment.
Collect checks instead of cash during fundraisers.

Electronic Crime Risk Management Controls

Pfishing scams, Trojans, key loggers, and similar techniques allow hackers to gain access to online banking transactions and to circumvent standard online authentication controls. Internal controls such as antivirus software, firewalls, and employee training are critical but don’t offer 100 percent protection. Computer Fraud and Electronic Funds Transfer Fraud coverages are strongly recommended.

Get a Quote

Contact Sadler Sports & Recreation Insurance at 800-622-7370 for a Crime Insurance quote. We have an existing Crime Insurance program available for smaller, locally-based organizations for as little as $175, which includes coverage for Employee Dishonesty, Forgery and Alteration, and Theft of Money and Securities. Larger sanctioning and governing bodies will be asked to complete an application that outlines your financial risk management practices and we will be able to provide a proposal within several days in most cases.