Make sure you pack insurance
By Karen White
CBN Oct/Nov 2009
Heading to that important competition across town, across the state or even across the country? Perhaps the most important item to take along is something you won’t find in anyone’s luggage—insurance.
When Robin Fritsch founded Dakota Spirit 14 years ago, she knew that to be a top-notch all-star program, her athletes would have to travel, as Sioux Falls, SD, was just a little off the beaten path for competitive cheerleading. In fact, for every single competition they hoped to attend, her athletes would have to travel out of state.
“I’d been coaching for many years and understood the need to protect myself and the program,” says Fritsch. “Being protected by insurance really gave me the comfort to proceed with our plans for travel and whatever we did.”
While all sports come with their own physical challenges, most gym owners and program directors understand that coverage is a must. “Ultimately, it’s a sport where kids stunt, tumble and catch each other,” says Wendy Ayers, co-owner and head coach of Cheer Central Suns in Broomfield, CO. “Insurance is a prudent thing.”
But while a gym or program might have insurance to cover accidents or liability in their gym, that insurance doesn’t automatically cover the team on the road. Lorena Hatfield, marketing resources manager of K and K Insurance Group Inc., a national insurance company specializing in sports teams, says that insurance policies differ from agency to agency. She advises all gym owners to make sure they understand their individual coverage and what it entails—and to specifically ask whether it applies to travel or not.
“With our policy, our athletes and coaches are covered wherever we are,” says Ayers, who fields 11 travel teams of all levels. “It was standard with our policy. We didn’t specially ask for it, but I made sure the policy did include travel.”
What to Look For
Program directors never know what adventures, accidents or injuries are lurking around the bend. Ayers remembers one trip when strep throat coursed through the squad; another time, teams were stranded at an airport for two days due to a huge snowstorm. Fritsch recalls one competition where an athlete got injured; on another trip, the bus broke down 20 miles from their destination.
With all the traveling required of these gyms, both owners are thankful they’ve never had a claim filed against them for an on-the-road incident. Still, both feel that having adequate insurance is imperative. “If you’re not covered, you’re only one accident away from closing your doors,” Fritsch says.
Any gym that’s a member of the U.S. All Star Federation (USASF) is eligible to receive coverage through its Cheer Gym Insurance Program. This comprehensive program provides coverage for gym location operations, as well as participation in events where enrolled participants are representing the gym, such as at competitions that are USASF sanctioned. This package (which is offered by K and K and Menard Gates and Mathis) and additional insurance programs available to cheer gyms through K and K includes the following coverage:
- Commercial General Liability: protects against bodily injury arising out of premises, operations, products, etc.
- Legal Liability to Participants: protection against bodily injury and property damage claims by participants
- Professional Liability: protection against claims that arise out of instruction, demonstration, direction and/or advice relating to cheer operations
- Medical Payments for Participants: pays medical and dental expenditures incurred by participants (not employees) when an accident occurs while participating in cheer operations
All athlete members of the USASF are also covered up to a million dollars of catastrophic insurance at USASF sanctioned competitions or member gyms, as long as they’re being supervised by a credentialed coach or are credentialed themselves. K and K also offers Event Producer Competition Insurance to all USASF sanctioned competitions. It’s important to note that the events that gyms and their athletes attend are also insured, as is outlined by the USASF sanctioning guidelines. Every USASF sanctioned event must have at least one million dollars in general liability insurance coverage.
Transportation issues can be tricky. K and K offers a Hired Auto and Employers’ Non-ownership Liability that protects against claims arising out of the maintenance or use of motor vehicles hired, leased or borrowed on a short-term basis and used in conjunction with program operations. But this coverage does not extend to the transporting of participants or to vehicles rented, hired or borrowed on a long-term basis. Hatfield suggests program owners contact a local licensed insurance agent to provide them with commercial automobile coverage.
Ayers says Cheer Central Suns doesn’t transport their participants. Instead, athletes drive with their parents or find their own means of transportation. The program might charter a bus, but in that case, the bus company’s liability policy would cover any accidents or injuries.
Other Considerations
Additional insurance policies pertaining to cheerleading programs may also cover claims of abuse, harassment, sexual conduct, etc.; claims of errors or wrongful acts committed by a program’s directors, officers, employees or volunteers; coverage for the program and its registered members during participation at meets, tournaments and events conducted by others; and coverage for direct loss or damage to a gym’s supplies, inventory, equipment, furnishings, signs, etc. The USASF program offers optional coverage for many of these instances. (For more on the USASF program, visit usasf.net).
If an athlete gets sick or hurt on the road, in most instances, the child’s own insurance policy would cover costs. Both Fritsch and Ayers require parents to provide insurance information during registration. Still, Hatfield says, it’s vital for any program to carry participant accident coverage to cover any injuries incurred by uninsured participants; such a plan also handles expenses not covered by the participant’s primary health plan.
For additional protection, programs may have parents sign liability or consent waivers concerning travel. Hatfield says that waivers and/or consent forms can help protect a gym against legal claims, but neither should be used as a substitute for accident insurance.
There are distinct differences between the forms: Waivers “release” a program from liability in case of injury, while “consent” allows a program to provide assistance such as emergency medical treatment. To be effective, Hatfield says, both must meet certain requirements:
- Participants must be allowed to read and sign forms before being allowed to participate.
- Forms should be signed annually.
- “Participants” include any non-employee official or volunteer who assists the program in a pre-planned capacity.
- Forms must be readable, understandable and meet state law.
- Waivers/releases and consent forms aren’t substitutes for good loss-of-control procedures and participant accident insurance.
- An attorney familiar with the workings of a cheerleading program should draft the forms.
In fact, Hatfield suggests programs obtain all insurance from agencies that understand the unique risks faced by sports teams.
Any organization that’s not adequately insured risks devastating financial loss in the event of a claim or lawsuit, even if the organization is ultimately not held responsible,” she says. “Defense costs alone can run into the tens of thousands of dollars.”
- Lorena Hatfield, K&K Insurance
Ayers understands. She does all she can to minimize the “risk of the sport itself,” including checking equipment, certifying coaches, following strict safety rules and making parents aware of all risks. Given that as many as 500 athletes, parents and supporters attend some events, Ayers allows parents to make their own travel arrangements. That “takes the stress off us,” she says, and reduces the program’s liability. “We’ve never had to use any of our insurance, knock on wood. With planning, preparation and safety awareness, hopefully that’ll help [gym owners] avoid any situations.”
Fritsch believes the fear of being sued can drive some people away from coaching. Despite all the precautions, coaches constantly ask themselves: “Is the passion I feel for this greater than the fear of being sued?”
“For most of us, the passion is greater. We’re always looking for ways to keep the program safe,” she says. “Ultimately, we’re paying our insurance company a premium to have that security in case something goes wrong.”
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