In Your Mind
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ICTURE A SOCCER GAME IN YOUR MIND. Visualize a field, goals and two teams of players. Then imagine each player wearing a large plastic bubble. It looks…well, it looks pretty much just like in the it sounds. PThe game of “bubble soccer” is one of many new sports ranging from “foot golf” (played with a soccer ball and no clubs) to “bossaball” (a combination of volleyball and gymnastics) that take a creative twist on traditional games. In some cases, that twist trends to the extreme: Tough WITH AMPLE CAPACITY, NEW PLAYERS Mudder, for instance, features amateur athletes contending not only with obstacles and lots of mud, but also with AND NEW EXPOSURES TO CONTEND WITH, electric cables that administer 10,000-volt shocks. THE SPORTS & RECREATION MARKET REMAINS AS COMPETITIVE AS EVER. The emergence of increasingly creative sports creates a whole new game for underwriters as well. “Because these BY MICHAEL P. VOELKER DECEMBER 2013-DIGITAL | PROPERTYCASUALTY360.COM NATIONAL UNDERWRITER “Growing awareness of the risk related to concussions will change sports and sports insurance forever,” says Jackson, the agency’s principal. In addition to specializing in coverage for amateur sports teams, Jackson Dieken & Associates also insures the Cleveland Browns franchise. “If you’re a sponsor of a sports league, you’re open to liability. With everybody knowing about concussions, you can’t say you were unaware of the exposure, so from a liability standpoint that is a con- cern,” says Rudi Hoffman, the agency’s marketing manager. John Sadler, president of Columbia, S.C.-based brokerage Sadler & Co., says litigation won’t stop with the NFL’s quiet ‘extreme’ sports are so new, it’s a little Some suggest that increased awareness settlement of a case with far-reaching difficult getting a handle on the exposure,” of the damage that can be done to legal implications; precedence has now says Brian Himmer, product manager football-playing youths could factor been established. “Plaintiffs’ attorneys in the underwriting department at in the drop-off in participation in are undoubtedly eyeing brain injury as Philadelphia Insurance Cos. Pop Warner, the nation’s largest youth the next class-action bonanza, similar to football program — which saw a 9.5% Himmer hasn’t seen a bubble soccer asbestos or construction defect, and the decline between 2010 to 2012, the account cross his desk — yet. However, funding source would be coverage under largest two-year drop in decades. That Philadelphia and many other insurers in general liability and excess liability.” development doesn’t surprise Robert a market characterized by ever-growing Jackson, who spent 11 years in the Although significant concussion capacity are willing to write a wide array NFL before founding Cleveland-based litigation has yet to impact amateur of sports & recreation risks despite the insurance agency Jackson Dieken & football and other sports, brokers report inherent difficulty of doing so. Associates with fellow NFL colleague that in response to concussion concerns, “We will consider almost any sport — Doug Dieken. many insurers have been adding new although we will review new types of exclusions to both CGL and professional activities very, very closely,” says Himmer. liability forms. “We feel we have the experience and expertise to assess that the [teams] have proper controls in place.” CONCUSSION IMPACT New types of sports aren’t the only development challenging carriers. In contact sports, one chief area of concern is concussions. In October 2013, the NFL settled a $765 million class-action lawsuit brought by former players suffering a variety of debilitating residual effects caused by head injuries. DECEMBER 2013-DIGITAL | PROPERTYCASUALTY360.COM NATIONAL UNDERWRITER “Most carriers are addressing the in conjunction with participation in players tripping in holes on the field and concussion or brain injury risk by either a concussion-management training other more common mishaps, Himmer using a total brain injury exclusion, program. Additional programs says. He adds that claim activity in the limiting the each occurrence and aggregate also focus on training teams in newer, sports & rec space has been relatively limits for participant legal liability, or seven-step test methods when steady over time: “Not much has changed requiring more stringent risk manage- concussions are suspected. over the past 20 years, except perhaps ment controls,” Sadler says. for a greater willingness to sue.” Sports insurers continue to expand their loss-control “This business exists everywhere. Every agent efforts both that’s located from small towns to big cities to reduce can find groups and clubs in both youth and claims and to distinguish adult leagues, with account sizes that range their services in from minimum premium all the way through a competitive six figures,” market. The Hanover — Scott Greico, President, Middle Market, The Hanover Insurance Group, for example, offers its Insurance Professional Development Likewise, amateur sports teams are “We’ve learned that the ‘flashlight test’ series — which includes a suite of cours- responding to the growing awareness is not specific and exact enough,” says es on topics ranging from maintenance to around the risks of concussions. Jackson. “The focus is on training the molestation. trainers and medical people across the “We’re seeing positive steps being taken “Premises injuries are where we continue country to better assess and analyze by national youth sports associations to see claims, whether it’s slips and falls players, and we are helping our clients in football and hockey geared towards in the locker room, tripping over equip- with that.” protecting young athletes,” says Lorena ment on the floor, or other areas where Hatfield, marketing resources manager There is also a growing movement to proactive maintenance programs can at K&K Insurance Group Inc. “It’s an require baseline testing of players as have a huge impact,” says Scott Grieco, encouraging trend that may help contain part of the standard medical exam president, middle market at The Hanover. the risk for not only concussions, but required by sports teams. “It shows us Waivers also are an essential risk of a variety of injuries and allow young that teams are being proactive, rather management tool for teams. “Having athletes to participate in healthy sports than just sitting back,” Jackson adds. proper waivers is a big plus when we activities.” “That’s important, because not being underwrite a risk,” Himmer notes. Last proactive makes them more vulnerable Most team programs rely on the Centers year, Philadelphia introduced its Waiver to claims.” for Disease Control and Prevention’s Saver program to provide health & fitness “Heads Up: Concussion in Youth Sports” BEYOND CONCUSSIONS club and amateur-sports insureds with training, available on its website, to waiver templates and legal resources to Concussion claims aren’t the only type help keep players safe. Encouraging protect their organizations. of bodily injury claims insurers face. awareness also can have coverage The most frequent claims are trips and benefits: Philadelphia offers policyholders falls — spectators falling off bleachers, a warranty affording concussion coverage DECEMBER 2013-DIGITAL | PROPERTYCASUALTY360.COM NATIONAL UNDERWRITER STRONG, COMPETITIVE MARKET Although several traditional youth sports — K&K offers e-commerce websites to With stable claim activity and ample including football, soccer, basketball help agents seize opportunity in several capacity, the market remains competitive — and baseball — have seen participation specialty areas, including martial arts, and capacity in the marketplace is strong. declines in recent years, the sports & gymnastic clubs and sports clinics. The “In recent years, the marketplace has rec market overall continues to expand. most recent addition, introduced in been flooded with new programs and “This business exists everywhere. Every March, is a site for outfitters and guides. carriers entering the sports & recreation agent that’s located from small towns K&K is developing a site for coverage of niche,” Sadler says. “There has never to big cities can find groups and clubs walks or runs of fewer than 16 miles. in both youth and adult leagues, with been more competition or more market Sadler & Co. offers an automated account sizes that range from minimum options.” solution through which agents can premium all the way through access the company’s team, league and six figures,” Grieco says. sports-clinic programs and get a quote, In addition to new sports, pay, bind and print proof of coverage CONCUSSION EXCLUSIONS new types of fitness facilities documents, certificates for field owners NOT AIRTIGHT present opportunity for agents, and claim forms in less than 15 minutes. including the growing popularity The standard ISO exclusion for athletic or Account rounding is key. “On these of 24-hour gyms and specialized sports participants is also cited in arguments smaller accounts, it’s critical to be able facilities that reflect the way against coverage for concussion claims to place all the coverages including today’s weekend warriors want under the CGL form, However, Shaun H. general liability, accident, D&O, crime to work out. Crosner, leader of the Sports Insurance and equipment with a single source in Practice at Dickstein Shapiro LLP, believes These new, smaller gyms the same transaction,” says Sadler. that even with this exclusion in place, insurers combine group workouts with are still