Sexual Abuse/Molestation Insurance for Sports Organizations

Source: sadlersports.com - Sexual Abuse/Molestation Insurance for Sports Organizations
Author: John M. Sadler

The risks organizations face and the preconditions for coverage

Sexual abuse and molestation is, unfortunately, a major topic of conversation within youth sports insurance in the past decade.  The sports insurance carriers that write General Liability have been decimated with a number of large settlements and adverse jury verdicts.

As a result, most carriers are not willing to extend coverage for abuse/molestation unless risk management controls are in place.  In other cases, the coverage is only available by tapping into custom programs for larger governing and sanctioning bodies that have significant negotiating power.

Coverage for abuse/molestation is important because all directors and officers will be sued along with the alleged abuser.  The directors and officers will be sued for failure to screen out staff with criminal backgrounds, failure to respond to an allegation, and failure to implement policies and procedures such as the use of a “buddy system” and prohibition of overnight sleepovers.

As a precondition of coverage, many insurance carriers will require mandatory background checks on all staff with access to youth, as well as the adoption of a risk management awareness program.

We have more detailed information on the various types of background checks and the strengths and weaknesses of each, as well as a free and simplified Abuse/Molestation Protection Program on our risk management page.

Read Full Story: http://www.sadlersports.com/blog/sexual-abuse-and-molestation-insurance-for-sports-organizations/

Coach Certification Liability Insurance

Source: sadlersports.com - Coach Certification Liability Insurance
Author: John M. Sadler

Don’t rely on it

Several of the coach certification training organizations offer General Liability insurance as a membership benefit to the coaches. This is a great benefit that is designed to act as a safety net in the event that the sports organization neglects to provide its own insurance or if its insurance contains unacceptable exclusions.

Some sports organizations that require all of their coaches to be certified mistakenly interpret this membership benefit as a green light to forgo purchasing their own General Liability insurance. This is a dangerous mistake. Individual coach certification General Liability insurance will not provide protection under the following circumstances:

•  It won’t cover the sports organization as an entity. As a result, the assets of the entity are unprotected if a lawsuit results in legal defense costs, settlement, or an adverse jury verdict. This can be catastrophic; even small sports organizations can have many thousands of dollars of asset value in their bank accounts, equipment, real estate, etc.

• It won’t allow for the issuance of a certificate of insurance under the name of the sports organization, which may be a property owner’s requirement for field or facility access.

• When a youth participant is injured, it is customary for all adult volunteers in close proximity to the injury to be shotgunned into the lawsuit based on negligent supervision. This includes the head coach, assistant coach, manager, umpire, referee, team mother, etc. In addition, the organization’s board members and officers will normally be included based on lack of general supervision. It’s likely that not all these volunteers are certified coaches and therefore won’t be protected.

• Most coach certification liability policies only cover lawsuits arising out of direct coaching activities. However, many lawsuits in the youth sports context arise out of non-sport activities and outings such as swimming parties, restaurant celebrations, backyard cookouts, banquets, fundraisers, etc.

The bottom line is that all sports organizations need their own General Liability policy. If you have questions, or want assistance in determining your insurance needs, please call us at (800) 622-7370.

 

Copyright 2002-2014, Sadler & Company, Inc.

 

Read Full Story: http://www.sadlersports.com/blog/dont-rely-on-coach-certification-liability-insurance/

Research may lead to fewer youth football injuries

Source: sadlersports.com - Research may lead to fewer youth football injuries
Author: John M. Sadler

Varying rules and policies among leagues is a factor

Two South Carolina youth football leagues were the subjects of a two-year study looking at athlete injuries across all age groups. The data collected during the research  conducted by the Athletic Training Department at the University of South Carolina could result in better safety policies within the leagues and, most importantly, fewer player injuries.

The results of the study are not yet published, but they look promising. The biggest predictor of injury appears to be league culture, not size or age, according to Jim Mensch, director of the program. Apparently every league has different policies, procedures, and safety standards and there seems to be a correlation there that indicates which players are more at risk for injury.

Part of the data was collected using 60 accelerometers. The high-tech devices were attached to players’ heads to measure collision force during practices and games. The information can then be downloaded for analysis.  USC is one of only a few institutions currently using this technology for research in youth football.

The early findings

Out of the 4000 players included in the study, 10 percent reported injuries that included everything  ranging from serious bruising to broken bones. Researchers also found that approximately 3 percent of the athletes experienced concussion-like symptoms.  That’s lower than the 7-9 percent reported in studies conducted on high school and college players.

Dehydration also appeared to be a significant factor in the number of injuries suffered. The study showed that players consumed adequate fluids during games and practices, but most were arriving to practice and games moderately dehydrated. It seems that players made good use of the fluids provided by the team and the water bottles they bring from home, but weren’t drinking sufficient fluids prior to arrival. Even with the water provided during play time, the sweat excreted left them chronically dehydrated.

The study’s other positive results

The parents and league organizers are delighted about the medical attention the players get from the study.  Many of the injuries get diagnosed and treated at practices and games by the athletic trainers conducting the study, rather than leaving parents and coaches to decide if a trip to the emergency room or a doctor’s office is necessary.

The study is being extended for one more year and will include more leagues in the area.

 

Source: Joey Holleman, “Study takes 2-year look at youth football injuries,” thestate.com. 22 Aug. 2014

 

Read Full Story: http://www.sadlersports.com/blog/research-lead-youth-football-injuries/

The Dangers of Cheerleading

Source: sadlersports.com - The Dangers of Cheerleading
Author: John M. Sadler

Lack of safety standards needs attention

I recently came across a news release from the national media on cheer injuries.  In addition to the usual horror stories, it included the following points of interest:

• Over the pasta 26 years, 73 cases of catastrophic cheerleading injuries in the U.S. have been traced by the National Center for Catastrophic Sport Injury Research at UNC.  These included fractured skulls or broken necks that led to permanent disabilities and two deaths.


• According to estimates by the Consumer Product Safety Commission, almost 30,000 cheerleaders are treated in emergency rooms nationawide each year.


• Emergency room visits from cheerleaders have tripled since the mid-80’s when cheerleading turned competitive and incorporated high risk gymnastics stunts. Cheerleading popularity and participation also increased during  this time.


• High risk stunts such as basket tosses, pyramids, and certain tumbling runs top the list for injuries, which are frequently executed on gymnasium floors, grass, and dirt with nothing separating the cheerleader from the hard surfaces.


• High school cheer is not considered an official sport in most states.  Therefore, cheer doesn’t necessitate the same limits on practice time, safety equipment, or training for coaches that are essential for other high school sports.


• The American Association of Cheerleading Coaches and Administrators (AACCA) requires cheer coaches to be certified in 13 states.  Certification often only requires an online test for coaches, which offers no training in spotting techniques or gymnastics.  And only about a dozen states regulate cheer by the rules that are set by the National Federation of State High School Associations (NFHS).


•  NFHS  offers an online cheer coach certification course comparable to the AACCA course.  Yet, each state will determine if the coach is required to take the certification course.


• In 2010, AACCA  introduced its first set of rules, which bans double twisting dismounts and basket tosses.  However, that rule only applies to the youngest cheerleaders who are on either the elementary, middle or junior high teams.


• Susan Loomis, the NFHS rulebook editor for spirit teams comments that there is no acting ‘cheer police’ at the high school level.  She herself does not know what the repercussions would be if someone did not follow or broke a rule.

Source:  MSNBC 

Read Full Story: http://www.sadlersports.com/blog/dangers-of-cheer-and-lack-of-safety-standards/

Injuries at Gyms and Homes

Source: sadlersports.com - Injuries at Gyms and Homes
Author: John M. Sadler

Thousands suffer in pursuit of fitness

Fitness Instructor Insurance and Health Club Insurance is in high demand due to frequent gym injuries.

According to the Consumer Product Safety Commission, the following injury statistics occurred in 2009:

*  1500 emergency room visits resulting from equipment related

mishaps in gyms

*  50,000 emergency room visits from home exercise equipment

incidents including treadmill falls, exercise ball falls, elastic stretch

band hits to face, and dropping free weights on feet.

*  Treadmills are the number one cause of equipment related injuries

with 575 occurrences of falling off, tripping over, and tripping on.

*  Weight machines and free weights caused 224 injuries.

*  Common gym equipment related injuries include broken ankles,

fractured arms, fractured legs, and fingertip amputations.

Fitness instructors cite the following reason for gym/exercise related injuries:

*  Inattention due to Ipods, cell phones, and reading.

*  Using equipment for the first time without proper instruction

*  Working out too hard, too soon after a period of inactivity.

Source: http://www.msnbc.msn.com/id/35127528/ns/health-fitness/

Read Full Story: http://www.sadlersports.com/blog/thousands-injured-in-gyms-and-at-home-in-pursuit-of-fitness/

Study: Physical Causes of Concussions in Youth Football

Source: sadlersports.com - Study: Physical Causes of Concussions in Youth Football
Author: John M. Sadler

And potential for lowering the numbers

A new study by Sadler Sports Insurance and American Youth Football (AYF), the world’s largest youth football organization, reveals the actual physical cause of concussions in youth tackle football ages 5 to 15. The study included 2,231 Accident insurance claims conducted over the years 2004 to 2013. During this time period, 5.58 percent of total claims reported were due to concussions. Below are trends for the physical cause of concussion claims:

Contact with ground			28%
Tackled by player			25%
Collision with opponent – other			17%
Tackling player			12%
Blocked by player			6%
Collision with teammate			5%
Blocking player			4%
Other			3%
Total			100%

Another way to consolidate the claim information is as follows:

Collision with player			69%
Contact with ground			28%
Other			3%

One of the primary risk management controls to reduce concussions in youth tackle football is the emphasis on the safe tackling technique through the AYF endorsed TackleSure program, which I reviewed in an earlier blog post . The TackleSure program would likely impact those concussion claims resulting from tackling players and tackled by player for a total potential 37% reduction of all concussion claims. In addition, the TackleSure program would reduce sub-concussive impacts and reinforce the more effective tackling technique.

Our earlier studies on concussions in AYF indicated that the vast majority of concussions occur during games – only 28 percent of concussion claims occur during practice. For more information on claims occurring in youth tackle football, see AYF Releases Data on Injuries in Youth Tackle Football.

 

Read Full Story: http://www.sadlersports.com/blog/study-physical-concussions-youth-football/

Insurance Policies Needed by Sports Organizations

Source: sadlersports.com - Insurance Policies Needed by Sports Organizations
Author: John M. Sadler

The minimum needed for maximum benefit

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

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

1. Accident: Pays medical bills on behalf of injured participants such as players and staff.


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


3. Directors & Officers Liability (AKA Trustees Errors & Omissions for municipal recreation departments): Responds to certain 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.


4. Property/Equipment: Covers your buildings, equipment, and contents against loss due to fire, vandalism, theft, etc.


5. Crime: Covers employee or volunteer embezzlement of funds or theft of property; forgery or alteration of checks by outsiders, and theft of money and securities by outsiders.


6. Workers’ Compensation: May be required by state law if three or more employees and pays benefits to injured workers for “on the job” injuries including medical bills, lost wages, disability lump sums, disfigurement lump sums, and death benefits.


7. Business Auto: Covers liability and physical damage to owned, non owned, and hired autos.


8. Consult with your insurance agent about other types of policies such as Liquor Liability, Cyber Liability, Media, etc.

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

Copyright 2002-20014, Sadler & Company, Inc.

Read Full Story: http://www.sadlersports.com/blog/insurance-policies-needed-by-sports-organizations/

Fitness trainer settles wrongful termination lawsuit

Source: sadlersports.com - Fitness trainer settles wrongful termination lawsuit
Author: John M. Sadler

Why fitness centers need Employment Practices Liability insurance

A fitness trainer settled his claim that he was wrongfully terminated by his employer, Best Fitness for $32,500. Salvatore Rachuna alleged he was fired because of complaints he made about a manager who repeatedly made inappropriate and lewd remarks in the presence of Best Fitness customers.

Rachuna was hired by Best Fitness in 2008 and worked in various positions in their Tonawanda, N.Y., and Erie, Penn., locations. In 2012 he began working under a new manager. His lawsuit claims that his supervisor repeatedly made “sexually advancing” comments regarding Best Fitness members and employees, both male and female. Rachuna’s complaint states the manager regularly discussed male genitalia size and the sexual activity of others and told sexual jokes about underage females.

Management’s response

Rachuna complained to the corporate vice president of personal training, who just happened to be the manager’s wife. He reported that he was uncomfortable and the behavior disruptive to the workplace. The only action she took was to tell Rachuna to “push back” anytime the manager, her husband, conducted himself inappropriately. The manager’s inappropriate behavior continued, so Rachuna made a formal complaint to the Best Fitness chief executive and human resources director in August, 2012. According to Rachnuna, his termination on Sept. 9, 2012 was a retaliatory action against his repeated complaints.

This case was one of two discrimination cases against Best Fitness arising from alleged actions of the Best Fitness manager. A separate complaint filed by a former group fitness director is pending. None of the complaints named the manager as a defendant.

What management can do

Defending against such claims can be costly. Employment practices lawsuits of this nature highlight the need for fitness centers to purchase Employment Practices Liability Insurance (EPLI), which can be purchased on a stand-alone basis or as part of a Directors & Officers Liability policy. EPLI policies generally cover the big three: discrimination, sexual harassment, and wrongful termination/discipline, plus a host of other employment related offenses.

If you are interested in a quote for this coverage, contact Sadler Sports & Recreation Insurance. We will provide a simple form to complete that will allow us to provide you with a quick quote.

 

Source: Lisa Thompson, “Erie fitness center settles lawsuit,” Erie Times-News. 17 Aug, 2014.

 

 

Read Full Story: http://www.sadlersports.com/blog/fitness-trainer-settles-wrongful-termination-lawsuit/

Cheer Gym vs. Competition Cheer Squad Insurance

Source: sadlersports.com - Cheer Gym vs. Competition Cheer Squad Insurance
Author: John M. Sadler

What’s the difference?

Cheerleading is no longer simply a group of girls jumping and yelling along the sidelines of a ball game. It’s a performance sport that has exploded with nationally televised cheer competitions and even big screen movies about cheerleading. This expansion has led to competition cheer squads that go head-to-head for recreation and cheer gyms that are in the businesses of teaching cheerleading and building cheerleading groups for major competitions.

A point of confusion that we encounter when reviewing cheer insurance applications is whether the group is a competition cheer squad or a cheer gym. It is vitally important that the correct insurance coverage is written for the organization and their specific exposures.

Making the determination

Six questions that we always have to ask are:

1. Are membership dues paid monthly, quarterly, once per season, etc.?


2. Is the organization’s facility owned, a long term lease, private, etc.?


3. Is the organization cheering for one team or a competition squad?


4. How are the coaches compensated?


5. Is the organization a 501c3 non-profit?


6. Does a board of directors oversee and run the organization?

We understand that not all applicants fall clearly into a competition squad or cheer gym category, but these questions allow us to make an educated assessment of the needs of the organization and provide the correct cheer insurance coverages.

A cheer squad typically pays fees once per season, uses school/local facilities, cheers as a squad for sporting teams, and is coached by volunteers. A cheer gym usually pays monthly dues, owns or has a long-term lease for a facility, cheers strictly in competitions and pays coaches a salary.

The factors few people take into consideration

There is a difference in premium cheer squad and cheer gym insurance premiums for good reason. The typical cheer squad is exposed to participant and coach injuries. Coverage is provided for the cheer squad itself as well as for the volunteers. Cheer gyms have a much greater risk of exposure than a cheer squad. The following points are taken into account when determining exposures of cheer gyms:

• The operation or long-term use of a facility creates a property exposure for anyone that comes onto the property and sustains a premises-related injury.


• Some cheer gyms provide extra services, such as private lessons, birthday parties, after school programs and/or soft play areas.


• Being run as a business means the coaches of cheer gyms are considered experts in the sport of cheerleading. This increases the standard of care owed to the participants and the bodily injury liability exposure.


• A professional liability exposure may result if the participant of a cheer gym sues over not being offered a college scholarship, or other expected benefits due to improper coaching.

Being under insured is just as risky as being uninsured. The cheer gym owner/trainer can lose personal assets, future earnings and even their business in the event a lawsuit arises and the correct coverage isn’t in force. No cheer gym owner should take the risk of losing everything in the event of a devastating injury resulting in lawsuit in order to save a few dollars on premium.

Please visit our website for more information on Cheer School & Cheer Gym Insurance and Cheer Squad Insurance.

 

Read Full Story: http://www.sadlersports.com/blog/cheer-gym-insurance-vs-competition-cheer-squad-insurance/

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/