Youth/Amateur Sports Insurance: Everything You Need to Know
Navigate the complexities of insurance and it’s requirements in the youth and amateur sports industry while addressing the financial risks associated for all stakeholders.
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Youth/Amateur Sports Insurance: Everything You Need to Know
Why do I need Insurance?
Youth sports has inherent risks, and comprehensive insurance is vital to safeguard financial investments.
Youth and Amateur Sports is a dynamic and thriving industry, yet it comes with inherent risks that can jeopardize the financial stability and operational success of all involved. Insurance is a critical component in safeguarding against these risks, providing financial security for Club Owners, Event Operators, Venues, Industry Partners, and the Parents/ Players who participate in the space.
This guide explores the various types of insurance essential for the industry, the specific needs of different stakeholders, a comprehensive checklist for Event Organizers, the benefits of using an insurance broker, and strategies to maximize coverage and save on premiums
2
Types of Insurance
Here’s the play-by-play on the types of insurance that keep the youth sports
world spinning:
General Liability Insurance - This is the cornerstone of insurance coverage, protecting against bodily injuries, property damage, and reputational harm such as slander.
Directors and Officers (D&O) Liability - Designed for key decisionmakers, this insurance provides defense against legal claims related to the management of the organization.
Accident Medical Insurance - Covers medical expenses for unforeseen incidents, offering benefits to athletes injured while participating in sports activities.
Commercial Property & Equipment Insurance - Essential for owners of sports facilities, this insurance safeguards against damages and losses to buildings, personal property, and/or business interruption. Equipment coverage can be critical to protect equipment while on-site or on the move
Workers’ Compensation - Provides coverage for team members, ensuring protection against injuries or illnesses incurred during employment (applicable to W2 employees).
Cyber Coverage - Helps businesses and organizations pay for financial losses and other costs that may result from a cyberattack, data breach, phishing, or social engineering fraud
Sexual Abuse and Molestation - Offers protection against claims of sexual abuse or molestation, crucial for organizations working with children or vulnerable populations. Coverage is sometimes included as a sub-limit within your General Liability policy.
Umbrella Liability - Provides higher limits of liability coverage over and above General Liability, Auto Liability, and Employers Liability.
With over 40 million annual participants in the U.S. diving into Youth and Amateur sports, navigating the right coverage is essential for addressing everything from unforeseen weather cancellations to accidental injuries.
Sports Fee Insurance - Protects clubs and parents from financial losses due to unforeseen events such as injuries, illnesses, or job loss, ensuring financial stability.
Event Cancellation Insurance - Mitigates financial risks associated with event cancellations due to weather or other unforeseen circumstances, maintaining steady cash flow.
Travel Insurance - Provides coverage for medical emergencies, lost luggage, and other travel-related issues during away games.
THE SCORE ON COSTS FOR YOUTH/AMATEUR SPORTS INSURANCE
What might this all cost? There is no straightforward answer to this question, since “youth sports insurance” is a broad term for the various types of insurance used within the youth sports realm.
Prices vary based on the type and the level of coverage, size and nature of the sports organization, number of participants, location, and the specific risks involved. Also, it is very important to understand that not securing the proper coverage can potentially be a far greater cost and risk your organization. Ensuring there are no hidden exclusions in your policy is crucial.
BEYOND THE BASICS WITH INDIVIDUAL YOUTH SPORTS INSURANCE
How can parents protect their financial investments? That’s where individual sports fee insurance comes in, tailored to protect the financial commitments that are made to play competitive sports. Sports fee insurance is becoming a standard offering in the youth sports arena. It’s designed to protect both clubs and families from financial losses when unexpected events, like injuries, illnesses or a job loss sidelines young athletes. This ensures that if an athlete can’t participate, it won’t lead to a financial hardship for families or clubs.
Clubs can often acquire a group rate, while parents might opt in during registration, making this coverage a versatile player in the youth sports insurance world. As with all types of coverage, it is crucial to review the covered perils, exclusions, and inquire about the claims process to ensure comprehensive protection.
Sports fee insurance is becoming a standard offering in the youth sports arena. It’s designed to protect both clubs and families from financial losses when unexpected events, like injuries, illnesses or a job loss sidelines young athletes.
4 Insurance Brokers:
What They Do and Who Needs One
An insurance broker acts as an intermediary between you and an insurer. Armed with both your background and their insurance know-how, they can find a policy that best suits your needs. All types of businesses will rely on brokers to navigate complex insurance needs. Drew Niles, with Risk Strategies explains, “Not all brokers are created equal so be certain to align your organization with a broker that can provide true advisory services.” Niles’ expertise in Youth and Amateur Sports ensures that comprehensive coverage tailored to the specific needs of Event Operators, Facilities and NGB’s meet the necessary requirements, mitigating risks and enhancing financial security.
5 BENEFITS OF USING AN INSURANCE BROKER
1. Expertise and Knowledge - Insurance brokers bring industry-specific expertise, helping to navigate complex insurance needs and find the best solutions for operations and events.
2. Pulse on the Market - Specialty Brokers understand the latest market trends and help to compare rates and policies from different carriers, ensuring the most competitive rates and the best coverage options.
All types of businesses will rely on brokers to navigate complex insurance requirements. All types of businesses will rely on brokers to navigate complex insurance needs.
3. Tailored Solutions - Brokers provide customized insurance packages that meet the unique needs of your business, avoiding unnecessary costs while ensuring comprehensive coverage.
4. Claims Assistance - In the event of a claim, brokers offer support to streamline the process and achieve faster resolution, minimizing disruption to your operations.
5. Risk Management Advice - Brokers provide proactive risk assessment and mitigation strategies. This helps prevent incidents and reduces the likelihood of claims.
5 Industry Sectors
National Governing Bodies (NGBs) play a crucial role in the sports ecosystem by overseeing and regulating their respective sports. They typically provide specialized insurance to their affiliated clubs and event organizers through the sanctioning of events. This often includes:
• Liability Insurance: Covers claims of bodily injury or property damage during sanctioned events.
• Excess Medical Insurance: Provides additional medical coverage for participants, ensuring that any injuries sustained during events are adequately covered.
Event Operators face unique risks and require comprehensive insurance coverage to protect against financial losses. The primary insurance needs include:
• General Liability Insurance: Protects against claims of bodily injury or property damage during events.
• Event Cancellation Insurance: Covers financial losses due to unforeseen cancellations, such as severe weather or other emergencies.
• Participant Accident Insurance: Provides coverage for injuries sustained by participants, ensuring medical expenses are taken care of.
Sports Clubs play a vital role in the youth and amateur sports ecosystem. Their insurance needs vary based on if they own and operate their facilities or utilize rentals. Key insurance considerations include:
• General Liability Insurance: Essential for protecting the club against claims of injury or property damage.
• Property Insurance: Necessary for clubs that own their facilities to cover potential damage or loss of property.
• Directors and Officers (D&O) Insurance: Protects club officials from personal liability in case of legal actions taken against their decisions.
• Participant Accident Insurance: Ensures that injuries sustained by athletes during club activities are covered. This coverage can also be provided through player cards obtained through the NGB, usually purchased directly by the parents.
• Property Insurance: Covers the venue’s buildings and contents.
Venues have specific insurance requirements to protect their physical assets and operations. Essential insurance types include:
• General Liability Insurance: Protects against third-party claims of bodily injury or property damage occurring on the premises.
• Workers’ Compensation Insurance: Provides coverage for employees in case of work-related injuries or illnesses.
• Business Interruption Insurance: Covers lost income and operating expenses if the venue is temporarily unusable due to a covered event. Event Cancelation insurance is especially helpful for outdoor venues.
Industry partners, such as registration and technology partners, require typical business insurance but especially benefit from cyber coverage. This is crucial given the sensitive data they handle and the increasing risk of cyber threats. Key insurance considerations include:
• General Liability Insurance: Protects against claims of bodily injury or property damage.
• Professional Liability Insurance: Covers claims related to errors or omissions in professional services provided.
• Cyber Liability Insurance: Provides protection against data breaches, cyber-attacks, and other cyber threats, covering costs associated with data recovery, legal fees, and notification expenses.
• Business Interruption Insurance: Covers lost income and operating expenses if the partner’s operations are disrupted due to a covered event.
By understanding and addressing these specific insurance needs, NGBs, event operators, sports clubs, venues, and industry partners can better protect themselves against potential risks and ensure the smooth operation of their activities within the sports ecosystem.
6 Youth/Amateur Sports Statistics 2024
According to the U.S. Department of Transportation and FlightAware utilizing 2023 weather-related data associated with air travel, out of the 606,218 scheduled domestic flights, 35,462 were either delayed or canceled due to weather conditions. This highlights the significant impact that severe weather can have on air travel schedules, emphasizing the need for robust contingency planning and insurance solutions to mitigate financial and logistical challenges. This also illustrates the effect weather can play on both indoor and outdoor sports events, leading to potential cancellations and disruptions.
Here are some of the recent Youth and amateur sports statistics to help better understand the need for insurance.
SP O RTS RELATED INJURIES
According to Stanford Medicine
Youth sports injuries are a significant concern, with approximately 3.5 million children under 14 getting injured annually while playing sports or participating in recreational activities. These injuries represent about one-third of all childhood injuries.
40% Of small businesses will file a liability claim in the next 10 years
Approximately 40% of small businesses will file a liability claim within the next ten years according to The Hartford. This statistic highlights the importance of carrying adequate liability insurance to protect against potential risks and financial losses associated with claims.
7 Navigating Event Cancellation Insurance
Event Cancellation Insurance is a critical component for event operators, venues, and participants in the youth sports industry. This insurance mitigates financial risks associated with the unforeseen cancellation of events, such as severe weather, natural disasters, or other emergencies, ensuring that all stakeholders are protected from potential financial losses.
“Event Cancellation Team Insurance is a game changer,” says Jennifer Peacock, President of US Sports Club Insurance. “Now that it is integrated into the top youth sports registration platforms in the US, consumers have the ability to choose the level of refund they need to protect their team budget.”
This innovative solution is changing the way event operators look at purchasing insurance to protect their revenue as well as how they plan to offer refunds in the future.
STAY-TO-PLAY REVENUE PROTECTION EXCLUSIVE TO USSCI
Stay-to-Play Revenue Protection by USSCI is an innovative solution designed to safeguard revenue for event organizers, housing platforms, and families participating in youth sports events. Seamlessly integrated into the hotel block reservation process, this policy ensures comprehensive protection for all reservations, without the need for families to opt in.
For Families: Room reservation deposits are refundable, offering peace of mind and financial protection. Families are automatically covered, allowing them to book accommodations confidently, knowing they are protected in case of last-minute event cancellations.
For Event Organizers: The policy covers the loss of room night rebates and commissions, stabilizing their income and reducing financial risks associated with cancellations. This protection comes at no cost to event organizers, making it a valuable and risk-free solution for securing revenue.
For Housing Platforms: Stay-to-Play Revenue Protection stabilizes booking fee revenue, enhancing platform reliability and consumer engagement by offering a guaranteed revenue stream. By simplifying the insurance process and providing automatic coverage, Stay-to-Play Revenue Protection exclusive to USSCI revolutionizes how event organizers, housing platforms, and families mitigate the financial uncertainties of stay-to-play events.
1. FINANCIAL PROTECTION:
Covers non-refundable expenses and lost revenue due to event cancellations, helping to maintain steady cash flow for both the event operator and the team.
2. CUSTOMIZABLE COVERAGE:
Teams have an option to protect their entry fee and organizers can also enhance coverage for additional revenue protection, providing flexibility and tailored financial protection.
3. PEACE OF MIND:
Provides assurance to event organizers, venues, and participants that they are safeguarded against unexpected disruptions.
4. Enhanced Reputation:
Demonstrates a commitment to protecting Stakeholders, potentially increasing participation and trust in future events.
5. EARLY REGISTRATION:
Weather protection insurance encourages early participant registrations so the team is not waiting to the last minute to register in case the weather looks bad.
8
Hard to place Coverage?
If you find yourself with hard to place coverage or rates that are skyrocketing then it may be time to explore alternatives to the traditional insurance market. As insurance premiums rise and some policies become unavailable, alternative solutions may exist within secondary markets or captive insurance programs. Controlling risk factors, and implementing risk reduction plans can help reduce costs as well.
What options are available for those who are turned down for traditional insurance?
• Secondary/Surplus Lines Insurance markets: Insurance carriers in this space specialize in taking on hard-to-place risk exposures that a business may have or if they simply have had issues with the severity or frequency of claims.
• Captive Insurance: Captive insurance is an alternative where a business creates its own insurance company to cover its risks. This option provides greater control over insurance costs and coverage terms, and can be particularly beneficial for businesses with unique or high-risk exposures that are difficult to insure through traditional means. However, setting up a captive insurance company requires significant initial investment and regulatory compliance.
According to a 2023 Global Risk Management Survey, 25% of respondents currently use captive insurance and 6% plan to establish one within three years. Captive insurance has become a popular choice for larger corporations, with about 90% of Fortune 500 companies owning captive subsidiaries.
9 Sky High Premiums?
HOW CAN YOU SAVE ON PREMIUMS?
• In Higher Deductibles: Choosing policies with higher deductibles can also lower insurance costs. Ensure that you ask for different deductible options when reviewing the coverage being quoted. Although higher deductibles can increase your out-of-pocket expenses for claims, weighing your options is an important part of choosing the right coverage for you.
• Controlling Risk Factors: Some risks, such as the location and type of business facility, can be managed to influence insurance costs. Factors like community crime rates, fire protection, and building security can impact insurance rates. A well-maintained, secure building with good access to emergency services can lower premiums. Historical safety records and claim history also play a role in determining rates.
• Risk Reduction Plans: Implementing risk reduction plans can minimize the need for extensive insurance coverage. Examples include enhancing workplace security to reduce burglary and theft risks, and establishing safety programs to lower accident rates. By actively managing risks, businesses can potentially reduce insurance requirements and associated costs.
Important Note: Certain types of insurance, such as auto liability and general liability, are legally required or critical for specific industries. Businesses must ensure they have adequate coverage for these essential policies.
10 Checklist for Event Operators:
PRE-EVENT PLANNING
Objectives & Audience: Define goals and identify target audience.
Budgeting: Create and allocate a detailed budget.
Venue: Select and book the venue.
Ensure accessibility and safety compliance.
Date & Time: Choose optimal date and time.
Permits & Insurance: Obtain necessary permits and insurance.
EVENT PLANNING AND LOGISTICS
Program: Develop event schedule and confirm speakers.
Marketing: Execute a marketing plan.
Registration: Set up and manage registration and ticketing.
Vendors & Suppliers: Contract and coordinate with vendors.
Staffing: Recruit and assign roles to staff and volunteers.
Logistics: Plan transportation, parking, and setup.
Day of Event
Setup: Arrange venue and test equipment.
Check-In: Manage smooth check-in process.
Coordination: Monitor schedule and handle issues.
Engagement: Assist attendees and encourage participation.
POST-EVENT
Breakdown: Oversee cleanup and return rentals.
Feedback: Collect and analyze feedback.
Financials: Reconcile expenses and revenue.
Thank You Notes: Send thank-you notes to key participants.
Reporting: Compile event report and debrief team.
Planning + Execution = Success
11 Insurance Tips & Tricks
Insurance is designed to be a safety net for when you need it, we all want fair prices that are clearly associated with the level of risk. Here are some tips and tricks to ensure you are negotiating the best rate possible for your needs. NEGOTIATION
• Collaborative Approach: Work closely with insurance providers to develop customized policies that meet your organization’s specific needs. Bettter yet, find a broker who specializes in your particular sport.
• Leverage Data: Use historical claims data and risk assessments to demonstrate your organization’s lower risk profile, which can help secure better rates and coverage
COMMUNICATION
• Stakeholder Education: Clearly communicate the importance and benefits of insurance coverage to all stakeholders, including parents, coaches, and administrative staff.
• Transparent Policies: Ensure all parties understand the terms, conditions, and claims process of the insurance policies.
TECHNOLOGY INTEGRATION
• Digital Solutions: Implement digital platforms to manage insurance policies, claims, and communications efficiently.
12 Final Analysis
Youth sports has inherent risks, and comprehensive insurance is vital to safeguard financial investments. This guide outlines strategies to mitigate these risks, providing peace of mind for parents, clubs, and event organizers.
Adopting best practices in youth and amateur sports insurance is crucial for ensuring financial security and allowing a greater focus on the game. But leveraging technology will streamline the insurance process, making it more efficient and transparent. And effective negotiating with insurance providers ensures comprehensive coverage that addresses specific risks like injuries and cancellations. Engaging stakeholders, including parents and coaches, fosters a culture of safety and preparedness, enhancing the overall success of youth sports programs. Staying updated with industry trends and regularly reviewing policies ensures they remain effective and relevant, supporting the growth and success of youth sports.
IN CONCLUSION, the dynamic nature of the youth sports industry requires robust insurance solutions to protect against a wide range of potential risks. By understanding the various types of insurance available and the specific needs of different stakeholders, organizations can make informed decisions to safeguard their operations and participants. Utilizing the expertise of insurance brokers, adopting technology for better management, and continuously educating stakeholders will create a secure and resilient environment for youth sports.
As the industry continues to grow, staying proactive in risk management and insurance planning will not only protect financial investments but also contribute to the overall development and sustainability of youth sports. Embrace these strategies to ensure that the focus remains on fostering talent and enjoying the game, with the confidence that all financial risks are well-managed and mitigated.
About US
About US Sports Club Insurance
US Sports Club Insurance (USSCI) is a leading provider of specialized insurance solutions for the youth sports market. At the forefront of their offerings is Event Cancellation Insurance, designed to protect against weather-related disruptions, ensuring financial stability for event organizers and parents. USSCI also provides Sports Fee Insurance, which safeguards the financial investments of youth athletes and their families. This comprehensive coverage includes protection against short-term injuries, illnesses, mental health conditions, job loss, and job relocation. Known for their innovative products and seamless integration with any registration platform, USSCI is committed to delivering unmatched financial protection and peace of mind to all stakeholders in the youth sports community.
About Risk Strategies Company
Risk Strategies is a privately held U.S. Insurance brokerage firm with 165 offices and 5,000 Employees throughout the country. With over 40 industry specialties, including Sports Insurance, Risk Strategies aims to deliver customized solutions to all clients. Risk Strategies delivers service and product offerings in many areas such Property & Casualty (Business Insurance), Group Medical & Health Insurance in addition to Personal Insurance and many other niche areas. Working with hundreds of sports related clients throughout the country, Risk Strategies is well positioned to advise on all lines of business insurance coverage. Whether its navigating all of the various types of Liability insurance such as General Liability or Directors & Officers Liability, or helping guide you through the coverage details of Workers Compensation, Business Auto and Property Insurance, Risk Strategies strives to keep all of their sports clients on the move.
Our Experts
Jennifer Peacock President, US Sports Club Insurance
Drew Niles, CIC Advisor, Risk Strategies Company
About Sports ETA
As the only non-profit 501(c)3 trade association for the sports and events tourism industry in the United States, Sports ETA is the most essential resource for sports commissions, and the events that our members own and host have the power to transform society for the better. Our passion is to help sports events and tourism professionals achieve previously unimaginable levels of performance. We do this by nurturing a community of smart, creative, and interesting people: our members. Visit sportseta.org.
