The Gamble of Being Underinsured

Source: sadlersports.com - The Gamble of Being Underinsured
Author: John M. Sadler

The risks can be catastrophic

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

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

What’s behind the lack of insurance?

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

• “We’ve never experienced a serious injury or lawsuit.”  The fact is that sports lawsuits tend to be infrequent but have a high potential for severity in terms of potential damages owed. Some sports organizations may go over five years without a serious incident, but it’s just a matter of time.

•  “Our waiver/release forms will prevent lawsuits.” The use of a well-drafted waiver/release form is a great tool under some circumstances. However, it won’t prevent a lawsuit from being filed. Even if the waiver/release does result in the lawsuit eventually being dismissed, it may still cost $10,000 to $20,000 in legal defense fees to get to that point.

•  “Volunteer immunity statutes will prevent lawsuits.” State and federal volunteer immunity statutes are a positive step in the right direction. However, they typically have too many loopholes and exceptions that limit their effectiveness. For example, most immunity statutes exempt protection in the event of grossly negligent behavior, willful or wanton conduct, or the reckless disregard for the safety of others. Most lawsuits make these allegations and the judge has to sort out if they have any merit. All this takes time, and the more time it takes to sort this out, the greater the legal fees. In addition, these statutes don’t protect paid staff and the sports organization as an entity itself.

•  “Our employees/volunteers/administrators provide their own liability policies.” Many sports organizations will leave it up to the individual volunteers or administrators to protect themselves through Homeowner’s Liability, Personal Umbrella, or Coach Certification Liability policies. This can be a dangerous strategy for many reasons. Homeowner’s Liability and Personal Umbrella policies may include an exclusion for lawsuits arising out of activities of the insured person as a sports volunteer. Furthermore, they won’t protect against the non-bodily injury or non-property damage lawsuits that a Directors & Officers policy may protect against such as discrimination, wrongful termination, failure to follow own rules or bylaws, etc.

The insurance policies sports organizations need

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

• Accident insurance pays medical bills on behalf of injured participants.

• General Liability responds to lawsuits arising from bodily injury, property damage, and personal/advertising injury.

• Directors & Officers Liability (or Trustees Errors & Omissions for municipal recreation departments) responds to certain lawsuits not covered by General Liability, such as discrimination, wrongful suspension or termination, failure to follow your own rules/bylaws, and violation of rights of others under state, federal, or constitutional law.

• Property/Equipment insurance covers buildings, contents and equipment against loss due to fire, vandalism, theft, etc.

• Crime insurance covers employee or volunteer embezzlement of funds or theft of property; forgery or alteration of checks by outsiders, and theft of money and securities by outsiders.

• Workers’ Compensation may be required by state law for organizations with three or more employees. It pays benefits to injured workers for on-the-job injuries including medical bills, lost wages, disability lump sums, disfigurement lump sums, and death benefits.

• Business Auto insurance covers liability and physical damage to owned, non-owned, and hired autos.

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

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

 

Read Full Story: http://www.sadlersports.com/blog/excuses-why-sports-organizations-dont-buy-insurance/

Frivolous Lawsuits in Sports

Source: sadlersports.com - Frivolous Lawsuits in Sports
Author: John M. Sadler

It could happen to you

Frivolous lawsuits take place all the time and the world of sports is by no means immune.  We get calls from people who want information on insurance because they are required to have it, not because they want it. Wear hear these comments all the time:

• “We’ve never had a claim.”


• “It wouldn’t happen to us, everyone likes our league.”


• “We make everyone provide their own insurance, so we’re not responsible.”

Wow! Simply WOW!  These days, it’s no longer a question of if you’ll get sued, it’s WHEN you’ll get sued.   And as often as not, it’s not what you did or didn’t do. It’s what someone perceives that you did or didn’t do that that can land you or your organization at the defendant’s table in a courtroom.   If you are involved in any capacity, whether as a coach, administrator, player, or volunteer, there is no other option than to make sure that your organization has coverage to pay in case you need the defense.

Below are just a few examples of  lawsuits that will make you make you say, “Hmm?”

• Rodney Carroll, coach of the 16 & under Brunswick (Ohio) Cobras baseball team, was sued for $2000 by the father of his catcher after a 0-15 season in 1999. The grounds? Crummy coaching

• Jason Abbitt sued the Vallejo (California) Babe Ruth Baseball League for 80 percent of his signup fee in 2002 because he only played in 20 percent of the games.  He sought $65, or $65 for every hit he had that season.

And these two stories were featured in Liable to Laugh 2004 (American Specialty Companies):

The parents of players on opposing teams became involved in a fistfight during a youth soccer game. The loser of the fight (who also was the aggressor) filed suit against his opponent and the soccer league because of his moderately severe injuries.  He alleged that the soccer league was negligent because it failed to control his behavior when they realized, or should have realized, that he was out of control. The soccer league, by the way, was for 5- and 6-year-old girls.

A child was playing in the outfield in a youth baseball league when he missed a fly ball that struck him in the face, causing facial fractures.  The parents sued the league and the coach, claiming that they knew or should have known that the claimant had sight problems and, therefore, should not have been allowed to play in the outfield.

And then there are the crazy claims that never make it to the court room, such as the woman who tried to file a claim because, as she was driving by a youth baseball field,  a baseball flew over the fence and through her back window hitting her bird cage  and releasing her prized pet.

Read Full Story: http://www.sadlersports.com/blog/frivilous-lawsuits-in-sportscould-it-happen-to-you-2/

Intentional Under Reporting of Sports Teams Insurance

Source: sadlersports.com - Intentional Under Reporting of Sports Teams Insurance
Author: John M. Sadler

 It’s not just fudging the numbers, its fraud.

The risk manager of a large municipal rec department called me recently. He had a league’s certificate of insurance in his hands that was issued by us. He was concerned that the league using his fields had over 30 teams, but our certificate indicated that coverage was only purchased for five. He asked if the coverage would be in force in the event of an injury. I had to break the news to him that coverage may not be in force – and that we had a big problem if his facts were correct.

Sports teams or leagues purchase Accident and General Liability insurance that is typically priced on a per team basis. The authorized representative of the sports organization completes an online or paper application and reports the number of teams in each age group. Accurate reporting, which is a fundamental part of the rate structure, depends on the “honor system.”  Intentional under reporting is flat out insurance fraud, and can result in claim denial, and definitely results in unwarranted rate increases.

The best way for the insurance carriers to scientifically predict the dollar amount of likely losses and needed rates is to study past loss history and assign expected losses per team. When the number of teams is intentionally under reported, the insurance carriers don’t collect the premium necessary to offset the risk of loss. When losses increase as a percentage of premiums collected, the insurance carriers must apply rate increases across the board.

Steps being taken to prevent under reporting

In an effort to maintain competitive sports insurance programs, the following steps are being taken to keep under reporting of teams in check:

1.  The number of teams reported on insurance applications will be cross referenced with association membership registrations.


2. The number of teams reported on the insurance application will be cross referenced with the team/league website.


3. At the time a claim is reported, claims adjusters may investigate the proper reporting of team figures before a claim is paid.


4. Sports insurance programs may require a roster of team names.

Please do your part to make sure that all of your teams are reported and accounted for when you apply for coverage. And remember, intentional under reporting of teams hurts not only those who depend on the claims being paid, but also drive up rates for everyone.

Read Full Story: http://www.sadlersports.com/blog/impacts-team-insurance-fraud/

2014 AYF/AYC Insurance Program Released

Source: sadlersports.com - 2014 AYF/AYC Insurance Program Released
Author: John M. Sadler

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 2014 insurance program for teams /associations /conferences.  Detailed 2014 coverage and rate information  is now available on our website Our online enrollment will become operational on May 15, 2014.

The 2014 offering 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 groundbreaking studies on safety in youth football and cheer.

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 document sand certificates for field owners. Or, they could charge $100 extra for next day rush delivery.

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.

Beware of competing programs that seem too good to be true

We often hear stories about a competitor offering cut-rate policies with a per team rate that is too low to be believable. Whenever this happens, something ends up being defective with the offering, which illustrates that if something is too good to be true, it usually is. We’ve seen cases where the quoted price did not include the cost of both the Accident and General Liability policies, where the organization never reported the transaction to the insurance carrier and no insurance was in force, and where a big corporation was going to foot the bill for the insurance (dream on), etc. After a little bit of digging, these schemes fall apart.

What is being done to combat the risk of concussion/brain injury and related litigation?

Sadler Sports Insurance has released a new Football/Cheer Concussion Awareness Risk Management Program (short form) that is strongly recommended for all teams/associations/conferences. This free program can be downloaded from our risk management page. This program consolidates accepted risk management practices into a three-page document for easy board adoption and implementation. An important element of this program is the new Tackle Sure coach training program, which is endorsed by AYF. The cost is $5 per coach and covers effective and safe tackling techniques on a step -by-step basis. It is important for all teams/association/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.

What is being done to combat sex abuse/molestation post Sandusky?

We introduced a simple one-page Child Abuse/Molestation Protection Program – Administrators (short form) that, if adopted by your board and fully implemented, will greatly lessen the chances of an incident occurring within your program. The free program can be downloaded from from our risk management page.

Best-in-industry risk management resources (free)

We have an incredible line up of free risk management resources including articles, legal forms, risk management program templates in  Microsoft WORD format for your easy adoption and customization, and training videos for administrators and staff. This includes the newly created document entitled Sample AYF/AYC Advanced Plan, which is a comprehensive risk management program customized for AYF/AYC organizations and is available exclusively to our current clients in the password protected section of our risk management page.

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.

 

Read Full Story: http://www.sadlersports.com/blog/2014-ayfayc-insurance-program-released/

The Importance of Signage in a Fitness Center

Source: sadlersports.com - The Importance of Signage in a Fitness Center
Author: John M. Sadler

Signs aren’t just for show

Signage in a fitness center serves several roles. Warning, policy / procedure, announcement and directional signs are all important to the safety of fitness center clients and protecting your business and staff from liability claims.

Warnings

These signs serve as silent staff members, reminding clients of safety procedures and cautioning them of potential dangers. These can include warnings of wet floors in sauna/jacuzzi/pool/shower areas, improper use of equipment, and use of spotters in weight areas. Warning signs should be professionally printed and posted strategically where they can be seen clearly and at eye level, or no higher than 6’ from the ground.

Policies & Procedures

These range from general policies posted at the front desk to issues of sanitation and courtesy throughout the facility. Examples include minimum age requirements of clients, policies for use of the locker rooms and showers, and use of equipment. These signs should also be printed professionally and placed in close proximity to the relevant area(s) no higher than 4 to 6’ from the ground. Decals on mirrors and glass doors/windows are useful for attracting attention to certain policies or instructions.

Announcements

Special events and classes take place in fitness centers on a regular basis. Signs alerting clients about the dates and details can be generated in-house by hand or computer and placed randomly, making sure they don’t interfere with or distract  from any safety or policy signs.

Directions

Signs denoting exits, ADA-facilities and equipment, emergency exit plans, location of safety equipment (fire extinguishers, first aid kits, alarms, etc.) should be professionally generated and posted per building regulations.

Despite the best efforts of your staff, accidents and emergencies will occur.  Your facility should have written emergency procedures in the event an injury illness or an emergency such as fire,tornado, power outage.

• Every staff member (including independent contractors and volunteers) should receive a copy of the emergency procedures and required to sign that they have read and understood them. These procedures should be reviewed regularly at least once a year.


• Staff members who work on the fitness floor should have Red Cross training in first aid. At least one CPR-certified staff member should be on site at all times.


• If there is AED equipment (defibrillator) on site, at least one staff member trained in the use of the AED should be on site at all times.

Source: David L. Harlowe, Chapter 27: “Fitness Center Safety,” Risk Management In Sport, Third Edition, 2012.

Read Full Story: http://www.sadlersports.com/blog/importance-signage-fitness-center/

Flash Flood Damaged Your Car? What Do You Do Now?

Source: sadlersports.com - Flash Flood Damaged Your Car? What Do You Do Now?
Author: John M. Sadler

It is apparent that the flash floods this year have devastated communities across the Midwest and the deep south.  Even areas like Northwest Florida that are used to having hurricanes, are feeling the sting like never before.

Pace, FL, April 29, 2014

Pictures are flooding social media with devastation of cars at home or even that have been stranded on the road.  And the question………. “What do I do now?  What will my insurance cover?”

The Better Business Bureau has a great article that was posted a while ago that contains great tips.   Read It Here

 

 

Read Full Story: http://www.sadlersports.com/blog/flash-flood-damaged-car/

Swimming outings source of liability claims

Source: sadlersports.com - Swimming outings source of liability claims
Author: John M. Sadler

Safety first at team pool parties

The swimming outing at a coach’s backyard pool, or at a motel pool during a tournament, is commonly the source of drowning or near-drowning incidents.

Drowning among youth baseball and softball players seems to be a prevalent problem in youth sports leagues. Of course, this is not isolated to just the baseball/softball arena, but more common most likely because of spring and summer activity.

Last year, an eight-year-old boy nearly drowned during his football team pool party in Arizona. His parents were in attendance but distracted for just long enough. Fortunately, the child was rescued by another alert parent.  Unfortunately, most cases that we read about do not have such happy endings.

Vigilance is the key

Drowning is the second highest cause of accidental death in children under the age of 15, according to the Center for Disease Control.. Approximately 750 children will drown next year, 375 of whom will be within 25 yards of an adult.

Accidents cannot always be prevented. It’s critical, however, to be vigilant when dealing with children in youth sports organizations. Most of the time, not every one of the children has a parent or guardian with them, especially when the team travels.  These parents trust that the coaches and volunteers that they leave their children with will be monitoring their safety and bringing them back home in one piece.

Steps toward prevention

Simple precautions can be taken to lessen the risk of drowning.

• 
  

  Participation requires passing a swim test.

  
  

• 
  

  Instill in team members “the buddy system” so they’re accountable for each other.

  
  


• 
  

  Have at least one CPR-trained adult in attendance.

  
  


• 
  

  Prohibit alcohol consumption by adults at all youth parties.

  
  


• 
  

  Adults should not be involved in any distracting activity (such as grilling, reading, talking on phone)

  
  


• 
  

  Hire a certified lifeguard and require them to provide proof of adequate General Liability insurance.

  
  

The avoidance alternative

A number of Sadler Sports insurance clients have been sued for drowning or near drowning incidents resulting in very costly settlements. I’ve personally witnessed a number of incidents around pools where parents get caught up in conversations and lose their concentration for just a split second, and that’s all it takes.

In my opinion, the risks of serious injury and resulting lawsuits are so significant with swimming parties that such activities should be avoided as their risks outweigh their benefits. Avoidance of high risk activities is sports risk management 101 and I put swimming parties right up there with the use of 15 passenger vans (tip-over risks) and sleepovers (sex abuse and molestation risk).

You can find further information on pool safety on the American Red Cross website. If you have questions, please contact us.

 

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Read Full Story: http://www.sadlersports.com/blog/swimming-outings-source-liability-claims/

Affluent Youth Athletes Have More Overuse Injuries

Source: sadlersports.com - Affluent Youth Athletes Have More Overuse Injuries
Author: John M. Sadler

Family finances may impact injury rates

Researchers apparently believe that money may very well buy unhappiness. A recent study found that young athletes from higher income families suffer a 68 percent higher rate of injury due to overuse than athletes from lower income families. The higher income families in the study could afford private insurance and the other families were on Medicaid, which is subsidized public insurance.

 The researchers also found that the athletes with private insurance who specialize in one sport doubled the number of those with public insurance. Researchers have known that athletes who concentrate on a specific sport are more prone to overuse injuries, but did not previously link the findings with family finances.

 What’s behind the findings

 The ongoing study, led by Neeru Jayanthi of Loyola University Medical Center, includes athletes 7 to 18 years of age. The economic status of the athletes’ families is widespread, with a median income of $70,000. Specialization can cost thousands of dollars in equipment, fees, transportation, and private lessons, according to Jayanthi. Families that can afford those costs may be able to offer their athletes more opportunities to focus on one sport.

Researchers also noted that while all the athletes spent roughly 10 hours per week in organized sports, the amount of time spent in unstructured sports activities, such as backyard basketball and football, was significantly different. Those with private insurance spent an average of 5.2 hours each week while those with subsidized insurance averaged 7.1 hours.

 Limiting risk of overuse

 Overuse can result in stress fractures and ligament and cartilage injuries, sometimes sidelining young athletes months. Given the findings in the study, Jayanthi offers suggestions below to help reduce the risk of overuse injuries:

•  Limit organized sports playing time to no more than twice that of unstructured play time.


• Limit the hours per week playing sports to the athlete’s age. (Ex: A 12-year-old should spend no more than 12 hours per week in sports activities.)


• Delay specializing in one sport until late adolescence.


• Athletes should take 1 to 3 month breaks from competition every year . The breaks don’t have to be consecutive.

Source: “Young athletes from higher income families,” Stone Hearth News, 11 Apr. 2014.

Read Full Story: http://www.sadlersports.com/blog/affluent-youth-athletes-overuse-injuries/

Crossing the Foul Line

Source: sadlersports.com - Crossing the Foul Line
Author: John M. Sadler

HIV-positive player kicked out of Florida rec basketball league

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

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

Should players with HIV / AIDS be allowed to participate in youth sports leagues? Find out in our article HIV In Youth Sports.

Food Handling Safety in Concession Stands

Source: sadlersports.com - Food Handling Safety in Concession Stands
Author: John M. Sadler

 

Are you cooking up trouble?

Ants, bees, flies, rain, or wind can be annoying when enjoying a hot dog and soda at the ballpark. However, all of those pale in comparison to food poisoning, another outdoor food risk!

Indoor and outdoor sports organizations risk liability in the event of a food poisoning incident resulting from improper food handling in concession stands.  General Liability generally covers such occurrences, but preventing them is preferable. What follows are some basic tips for reducing such risks.

Management and purchases

• Concession stands must adhere to local food licensing and permit laws and regulations.


• All concession workers should receive training in proper food handling by management.


• Only purchase food from reputable, good-quality sources.


• Do not purchase or serve any food past the expiration date.


• Avoid serving food prepared at home, other than baked goods.

Food Handlers

• All concession workers must wash hands using soap and water after potential contamination. This include but is not limited to:
  
  • Using restroom
  
  
  • Sneezing, coughing
  
  
  • Touching counters and garbage cans, dumping garbage
  
  
  • Touching cash register and money
  
  
  • Touching face, mouth or hair
  
  


• Use of gloves and hand sanitizers offer additional protection, but are not a substitute for frequent hand washing.


• Food handlers must be symptom-free of illness (coughing, sneezing or sniffling, fever, nausea, vomiting, diarrhea) when handling food.


• Food handlers must use appropriate utensils, gloves, or deli paper when handling food.

 Insects and Vermin

• Store all food off the floor.


• All food should be covered and spills/drips continually wiped down to discourage insects.


• Keep trash cans covered at all times with tight-fitting lids.

 

Refrigeration

• Foods requiring refrigeration to be held at 40° F or lower until being served.


• Keep a thermometer in your refrigerator/freezer to ensure fridge is maintained a 40°F and freezer at 0°F.


• Perishable food should not sit out of refrigerator longer than two hours.

Sanitation

• Disposable utensils and paper products should be used to reduce cleaning and contamination.


• Do not wash or reuse disposable products.


• Sanitize and wipe down all food preparation surfaces and concession equipment frequently.


• Do not overfill garbage cans, and empty them frequently.

For more detailed food handling information, you can download our food risk management report.

Read Full Story: http://www.sadlersports.com/blog/food-handling-checklist-sports-concession-stands/