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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.

Do Leagues Need Workers’ Compensation Insurance?

The important question you need to ask and we help answer

Are sports organizations required to carry Workers’ Compensation insurance when workers are paid? This is a complex issue with some gray areas. Making matters worse for administrators is the fact that consequences can be severe for organizations that don’t have coverage if an injured worker can successfully argue that they are entitled to Workers’ Compensation benefits.

Most sports organizations such as teams and leagues are run by volunteers, but pay individual workers or businesses for services such as umpiring, janitorial, concessions, field maintenance, etc. And if these sports organizations win a bid to host a large tournament, the number of workers increases. These hired workers are, of course, considered independent contractors, not employees, for tax purposes.

Sports organizations typically purchase Accident and General Liability insurance but not Workers’ Compensation. The Accident policy usually covers all players, coaches, umpires, scorekeepers, and other staff, paying for medical expenses (ranging from $25,000 to $250,000 depending on the limits selected) not covered by family health insurance. The Accident policy is meant to cover volunteers and other paid workers who don’t come under the Workers’ Compensation Act.

I am basing the information below on South Carolina law and my understanding of the South Carolina Worker’s Compensation Act as it pertains to sports leagues. Other states have similar laws, but slight variations that occur from state to state can make a difference, and several states have enacted laws that exempt sports leagues from carrying Workers’ Compensation.

Liability for injuries to unpaid workers

Workers who are not paid are considered to be gratuitous workers. Their injuries are not compensable under the Workers’ Compensation Act.
Workers whose compensation is considered to be expense reimbursement (ex: some umpires) are likely considered to be gratuitous workers.
Injured gratuitous workers can file for Accident insurance benefits if such a policy exists. They can also file a lawsuit against the sports organization based on negligence. Such lawsuits may be covered by a General Liability policy unless a specific exclusion applies to deny coverage.

Liability or injuries to paid employees

Just because a sports organization classifies a paid worker as an independent contractor does not mean that the Workers’ Compensation commissioner will agree with such classification. This is true even if there is a contract in place that states the worker is an independent contractor. In these cases, the injured worker almost always claims to be an employee instead of an independent contractor. The commissioner will apply a test based on case law and will look at about 20 different factors. Commissioners are typically sympathetic to injured workers and will go to great lengths to find that they are employees and their injuries compensable under the Workers’ Compensation Act as a result.
Sports organizations are exempt from carrying Workers’ Compensation if they regularly employ less than four employees within the state or had a total annual payroll of less than $3000 during the previous year, regardless of the numbers of people employed during that period.

Liability for injuries to subcontractor workers

The terms independent contractor and subcontractor are interchangeable for Workers’ Compensation purposes.
Sports organizations hiring subcontractors to perform or execute work that is part of the “trade, business, or occupation” of the sports organization are liable for injuries to the workers of such subcontractors, just as if they were employees of the sports organization.
Injures to a subcontractor worker who is a sole proprietor, partner, or LLC owner of the subcontractor business are not compensable under the Work Comp Act. However, these workers will usually claim that they are employees instead of subcontractors.
If the subcontractor carries its own Workers’ Compensation policy, such policy will pay benefits to the injured workers. That being said, it’s imperative to require the subcontractor to provide a certificate of insurance as evidence of Workers’ Compensation before they are hired.

Liability and penalties for failure to carry required Workers’ Compensation

If an employee or worker of a subcontractor suffers an injury that is covered under the Act and they seek Workers’ Compensation benefits from a sports organization that was required to carry Workers’ Compensation but failed to do so, the consequences can be severe.

Penalties can be assessed against the sports organization to make up for past Workers’ Compensation premiums that should have been paid.
The injured worker can file for Workers’ Compensation benefits against the state Uninsured Employers Fund, which results in a lien being placed against the sports organization in an amount that is equal to the benefits paid. This can result in insolvency for the sports organization since the total benefits can be extremely large depending on the seriousness of the injury. Workers’ Compensation may include past and future medical bills, lost wages based on 66.66% of the worker’s average weekly wage for up to 500 weeks paid in a lump sum for a disability, disfigurement, or death benefit.

If you have questions or want to inquire about receiving a Workers’ Compensation proposal, please call Sadler Sports & Recreation Insurance at 800-622-7370. You’ll be asked to provide information about the types of work and annual projected payroll of your workers.

DISCLAIMER: THIS ANALYSIS IS NOT MEANT TO PROVIDE SPECIFIC INSURANCE OR LEGAL ADVICE TO ANY SPORTS ORGANIZATION IN SOUTH CAROLINA OR ANY OTHER STATE. SPORTS ORGANIZATIONS MUST SEEK ADVICE FROM THEIR INSURANCE AGENT AND LEGAL COUNSEL BASED ON THEIR OWN UNIQUE FACTS AND CIRCUMSTANCES.

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.

Accident: Pays medical bills on behalf of injured participants such as players and staff.
General Liability: responds to lawsuits arising from bodily injury, property damage, personal/advertising injury.
Directors & Officers Liability (AKA 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 rules or bylaws, and violation of rights of others under state, federal, or constitutional law.
Property/Equipment: Covers your buildings, equipment, and contents against loss due to fire, vandalism, theft, etc.
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.
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.
Business Auto: Covers liability and physical damage to owned, non owned, and hired autos.
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.

Workers’ Comp Abuse by Pro Athletes

California moves to close loophole

California is home to a bevy of professional sports organizations. Whether you’re watching the Warriors in the NBA playoffs or cheering on the San Francisco 49ers toward another divisional title, Californians are proud supporters of their players and teams. But did you know that athletes not based in the state of California are eligible to file workers’ comp claims should they suffer an injury while participating in a sporting event in the state?

Insurers may be on the hook for more than $1.5 billion in potential Workers’ Compensation claims filed by out-of-state athletes, according to Milliman Inc., a Seattle-based actuarial and consulting firm. Assembly Bill 1309 seeks to amend the California labor code in an attempt to offset these losses, saving California tax payers money.

California’s “Cumulative Trauma” Workers’ Compensation provision for professional athletes

In its current form, the California labor code provides that any injury defined as “cumulative” or occurring as repetitive mental and physical trauma with the combined effect of disability or the need for medical treatment may be covered by the state’s Workers Compensation provision. It does not require that professional athletes covered by the law be employed by a California based organization. Rather, the injury needs only to have occurred while in the state for the claimant to receive benefits.

The California Insurance Guarantee Association pays for insolvent insurers and is funded by assessments on California employers. The Milliman report alleges that CIGA has processed 1700 Workers’ Comp claims from players residing out-of-state, prompting speculation that guarantee fund assessments paid out by Californian employers will soon be on the rise.

Out-of-state athlete abuse

The statute of limitations to file a Workers’ Comp claim does not begin until an employee has been informed of their right to file and is valid for one year. Retired players suffering neurological and cognitive disorders as a result of their professional affiliations are the most likely to benefit from this loophole. Milliman estimates that claims by athletes having played professionally in California within the last 30 years could reach $1.57 billion with $825 million coming from retired players who have not yet filed claims. Approximately $1.23 billion or 78% of these claims are likely to come from out-of-state.

Assembly Bill 1309 would ban professional athletes and their dependents from receiving California Workers’ Comp benefits if the athlete was hired by an organization outside of the state. This includes minor/major league baseball, basketball, football, hockey and soccer.

Source: California Looks To Stem Pro Athletes’ Comp Claims; Sheena Harrison; Business Insurance: April 22, 2013.

Workers’ Compensation for Sports/Recreation Organizations

Understanding what’s required and why

Workers’ Compensation is an important but often overlooked insurance policy for sports and recreation organizations. Many smaller organizations attempt to only carry Accident insurance when Workers’ Compensation may be required by state law. Workers’ Compensation tends to be more expensive, more difficult to administer, and less readily available from the private marketplace as compared to Accident insurance.

This article will explain the requirement to carry Worker’s Comp, the benefits it provides, what premiums are based upon, and how to properly set up a policy.

Is your organization required to carry Workers’ Compensation?

It can be difficult to determine if a particular sports or recreation organization is required to carry Workers’ Compensation as state laws vary. Typically, most states require an organization to carry Work Comp if they regularly employ three or more employees, though it may be two or more or four or more in some states. The legal definition of employee includes officers and may also include workmen of subcontractors. Things are further complicated by various exemptions from the employee count if compensation is below a certain level. Some states have laws exempting certain sports league workers.

The best way to determine if Worker’s Comp is required is by contacting your state’s Workers’ Compensation commission. Our article Do Leagues Need Workers’ Compensation Insurance? may also offer some clarity.

One thing is certain in every state: if your organization is required to carry Worker’s Comp and fails to do so, and if a worker is injured, the penalties and liabilities can be severe. Most states have an uninsured employers fund that will pay the normal benefits on behalf of an injured worker whose employer failed to carry Worker’s Comp. After paying the benefits, the fund places a lien equal to the amount of benefits paid against the non-complying organization, which can easily result in bankruptcy.

Workers’ Compensation policies consist of two coverage parts

Part One: Statutory Workers’ Compensation

This pays the benefits to injured workers in accordance with the controlling state’s Workers’ Compensation Act. State Workers’ Compensation laws were developed to provide efficient compensation to injured workers and to protect employers against lawsuits. As a result, Workers’ Compensation is a no-fault system that pays without regard to negligence or wrongdoing on the part of the employer.

Below are the benefits Workers’ Compensation insurance pays to employees or employees of uninsured subcontractors who suffer occupational injuries or diseases while “on the job” and “in the course of employment.” Benefits vary from state-to-state.

100% of past and future medical bills
Rehabilitation expenses
Weekly lost wages based on a formula (usually 66.6% of average weekly wages for the prior year) for a predetermined number of weeks subject to a waiting period and a minimum and maximum payroll amount
Lump sum awards for disabilities
Lump sum awards for disfigurements
Death benefits to dependents

Part Two: Employers Liability

Employers Liability responds to legal liability from occupational injuries and diseases to employees where recovery is allowed by law. Such claims are somewhat rare, but injured workers and third parties can sometimes file lawsuits to trigger coverage under Employers Liability. Examples of such lawsuits include loss of companionship by spouse, loss of household services by a family member, dual capacity lawsuits, third-party-action-over, and consequential bodily injury.

Operations in multiple states

Workers’ Compensation policies should be customized to account for multi-state operations since each state has its own Workers’ Compensation Act with unique requirements and benefits. Failure to properly set up the policy can result in uncovered claims. Unfortunately, it can be difficult to find a single insurance carrier that is licensed in all states, which can result in a hodgepodge of separate insurance policies and administrative hassle of separate billings and policy audits.

It is important to properly list all states with both known and unknown exposure under sections 3A and 3C of the policy. Otherwise, coverage in a particular state will not be triggered. This can be a problem since injured employees and their attorneys “forum shop” to bring their claim for Workers’ Compensation in the state that will have the highest level of benefits. The various state Workers’ Compensation acts may allow choice of state between state of hire, state of residence, state of primary employment, state of pay, state of injury, or state in agreement between employer and employee. For example, assume that the claimant has a choice between filing for benefits in the states of SC and VA and that the VA benefits are $20,000 greater and that VA was not properly added as a covered state. In this scenario, it is possible that the Workers’ Compensation carrier would pay benefits up to the SC level but the insured sports organization would be responsible to pay the remaining $20,000 out of pocket.

Section 3A (Known State Exposure): Section 3A of the policy triggers coverage for each state where the insured “knows” that an employee or uninsured sub will be working as of the effective date of the policy. The definition of “known work” is subject to varying interpretations. Some insurance experts advise that 3A should be limited to states where an employee is domiciled or where there is an existing contract for work as of the effective date. These experts don’t see the need to list states through which salesmen will be traveling or in which executives will be attending trade shows. However, other experts and some state Departments of Insurance would advise listing all states within which employees have even minimal contact under Section 3A.

Section 3C (Unknown State Exposure): Section 3C of the policy triggers coverage for states in which the insured is not aware of potential exposure as of the effective date of the policy. This section should included all states except those listed in Section 3A and the monopolistic states. It is important to note that Section 3C will not provide benefits for any state which should have been listed as a Section 3A state. The insurance carrier should be notified immediately if work begins in a 3C state after the effective date of the policy.

Monopolistic States: Sports organizations with worker exposure in the monopolistic states of ND, OH, WA, and WY must purchase Workers’ Compensation coverage directly from the respective state fund. Coverage for these states can’t be purchased through the private insurance marketplace. Since Employers Liability coverage is not available through the monopolistic state funds, a coverage known as “Stop Gap Employers Liability” should be endorsed onto either a private marketplace Workers’ Compensation policy or the General Liability policy.

Federal compensation laws

Some sports organization may have operations that fall under various federal compensation benefit laws that are not covered by the standard Workers’ Compensation policy form. If such exposure exists, it must be endorsed onto the existing Workers’ Compensation policy or a stand-alone policy must be purchased. Failure to address these federal exposures can create large uninsured liabilities as the benefits owed under these federal laws tend to be much higher than those under state Workers’ Compensation.

Examples of federal benefit laws creating liability include U.S. Longshoremen and Harbor Act (operations over navigable waters), Jones Act (seamen on vessels), and Foreign Defense Base Act. The USL&H and the Jones Acts may apply to certain water-based sports organizations.

How a Workers’ Compensation premium is determined

A Workers’ Compensation premium is based on a rate per $100 of projected payroll per classification code. Various types of classification codes are available for different types of workers such as clerical, sales, coaches, athletes, camp instructors, umpires, gate, concession, and field maintenance workers. Strict classification rules are set by the National Council on Compensation Insurance or the state equivalent. Each classification is assigned a different rate in each state depending on the statistical risk of injury. Rates can be further adjusted by a rating factor called an experience modification that is promulgated by NCCI (or state equivalent) that rewards or penalizes an insured based on their past safety and loss record. At the end of the policy year, an audit is performed to determine the actual payrolls and the premium is adjusted.

Sports risks are perceived as high risk

Insurance carriers that write Workers’ Compensation insurance may perceive sports and recreation organizations as high-risk business and often are not willing to voluntarily write this coverage. As a result, many end up being placed in state assigned risk pools that result in higher rates and less flexibility to add needed states of coverage. Of particular concern to insurance carriers are sports organizations with employee exposure in the areas of professional athletes, coaches, and umpires and the rates for these classes can be shockingly expensive and can vary greatly from one state to the next. On the other hand, organizations with employee exposure limited to the areas of clerical, officer travel, and event management are not considered to be high risk.

Get a quote

Contact Sadler Sports & Recreation Insurance at (800) 622-7370 to inquire about receiving a Workers’ Compensation proposal. We will ask you to provide information about the types of work and annual projected payrolls of your various types of workers.

NFL’s Defense in Concussion Lawsuits

Will NFL use Workers’ Compensation as an exclusive remedy?

More than 20 lawsuits name the NFL as a defendant alleging the league negligently misled hundreds of former players about the dangers of concussions and other head injuries. The league’s official provider of helmets, Riddell Inc., is a defendant in some of the suits.

The NFL will probably argue that players who suffered concussions should be covered solely by provisions of the league’s collective bargaining agreement, according to Michael McGlamry, an attorney representing many of the players. Those provisions include workers compensation, disability benefits and the NFL‘s 88 Plan, which covers medical and custodial care of retired NFL players with dementia.

Source: Business Insurance, January 30, 2012

Cumulative Concussions and California Workers’ Compensation

Under California’s liberal Workers’ Compensation code, NFL players from any franchise can file claims for cumulative trauma injury, even if they merely played a single game or practiced in the state. Workers’ Comp attorneys representing players from the 1960s to the present are forum shopping these claims to the tune of $150,000 to $200,000 per claim. Since 2008, 1600 claims have been filed in California at a cost of $375 million. The projected cost is expected to exceed $1 billion.

These cumulative trauma concussion claims will cost NFL teams dearly on their Workers’ Compensation premiums thanks to California. Other states don’t cover cumulative trauma claims under their Workers’ Compensation codes.