Some of the talk focuses on former pro athletes who are just now seeing the long-term effects of concussion injuries incurred during their prime. Decker points to famed 1980s Chicago Bears quarterback Jim McMahon, who reportedly has some permanent memory damage after a career that included at least three severe concussions. “A lot of the repercussions from concussions are not known at this point,” says Decker.

Solutions thus far rest with both the leagues and the insurers, who together need to set rules for post-concussion treatment and play, he says—adding that the leagues are becoming more aware of the potential impact concussions could have on future claims: “Pleading ignorance won't fly anymore.”

GETTING SERIOUS ABOUT CONCUSSIONS

While serious coverage implications due to concussions still have yet to emerge, insurers, coaches and league officials are looking at prevention, testing and return-to-play guidelines, says Mark Nichols, managing director of the accident and health unit of Glen Allen, Va.-based Markel Corp.

“I remember when I was a kid playing football we called it 'getting your bell rung,'” Nichols says. These days, “the issues on concussions focus around a variety of things. There's a lot of focus now on baseline testing to try to understand how we diagnose when somebody has concussion symptoms and when are they medically clear to participate.”

Prevention and guidelines for returning to play are being reviewed by state legislatures, insurance companies, risk managers and sports leagues, Nichols says. Cognitive testing is a possibility: score players in advance to get a sense of their cognitive ability and test them again after a concussion injury. 

“It's a risk that must be managed,” says Lori Windolf Crispo, managing director for the sports programs division at Bollinger Insurance in Short Hills, N.J. Bollinger has been the insurance administrator for U.S. Lacrosse since 2001.

“We had a boy, 16, who went back to play the day after receiving a concussion,” Crispo says. New Jersey state law dictates that the boy needed to be evaluated by a doctor, but he was not. “He sustained a second concussion and has some permanent damage.”

Such an injury falls under General Liability because it is a bodily injury; however, the sports organization itself also can be found negligent if it doesn't have guidelines in place to address such situations, says Crispo. 

Leagues or camps that are part of a larger organization should be aware of and follow concussion protocols, says Todd Bixler, president and CEO of Fort Wayne, Ind.-based K&K Insurance Group, a managing general underwriter with Nationwide as its provider. K&K provides coverage for sports teams, leagues, associations, events, tournaments, camps and clinics, among others.

SEXUAL ABUSE TAKES CENTER STAGE

Additionally, K&K is releasing a new product to confront the issue of sexual abuse, Bixler says. To be offered this spring, the coverage includes Sexual Abuse or Sexual Molestation Liability coverage, with limits of $1,000,000 each occurrence/$1,000,000 aggregate. Other coverage enhancements are also in the pipeline, he adds.

Child abuse has been taking center stage in youth sports due to recent high-profile sexual-abuse claims out of Penn State and Syracuse University, says Decker, who notes that Sexual Abuse and Molestation coverage is currently the leading coverage request among amateur-sports teams nationwide.

“Child abuse is becoming a hot topic and [Molestation coverage] has become a hot seller, not only in sports and recreation but also in nonprofits and day care,” Decker says.

Sexual Abuse coverage is especially important today as the number of sports camps grows despite the challenged economy, Crispo says. Lacrosse teams and camps, for example, have been growing rapidly. The sport has seen double-digit growth in each of the last 12 years, and its insurance needs have increased as well, says Steve Stenersen, president and CEO of Baltimore-based U.S. Lacrosse, which touts some 800,000 player-members.

Educating parents on what they should ask of a sports league is essential, according to Stenersen. “We're trying to empower parents to not just be zombies and assume that with their rec or club program, their coach is properly educated, has undergone a background check, there's an AED [Auto Emergency Defibrillator] on site, there's a risk-management plan in place,” he says. “We're trying to empower parents to ask those questions, to check what insurance is in place.”

U.S. Lacrosse offers a comprehensive insurance program that is part of the membership, including Excess Accident, CAT/Medical and Participant Legal Liability.

The Excess Medical Benefit has a limit of $25,000, and the additional CAT/Medical goes up to $1 million and pays for legal liability as well, he adds. D&O is available as an add-on.

U.S. Lacrosse also provides risk management by creating structure in a sport where there was none, even as recently as 15 years ago. “Before U.S. Lacrosse there was no standard criteria or curricula for coaches or officials nationally,” says Stenersen. Maximizing player safety, ensuring that the rules of the game are taught correctly to both boys and girls (each sex has different rules of play) and officiating matches effectively help to prevent injuries.

PROTECTING PARENTS' INVESTMENTS

Overall, the youth-sports niche is doing well. It's a “pretty exciting and secluded world right now,” says Decker. “It doesn't get as affected as one would think when the economy tanks, mainly because people are willing to invest the money in their kids. You'll see them cut the Disney vacation, but not the Little League baseball. It's something parents see as an investment in their kids.” Youth sports is still a lure for parents who want to give their children an edge toward college and a scholarship, adds Crispo.

Pricing has firmed moderately in the amateur-sports segment, says Tony Pulgine, president of MIC Insurance Brokerage Inc. in Naperville, Ill. “We are able to get small increases on renewal coverages, but so far, rates have moderated.”

Pulgine says he's seeing growth in Participant Accident coverage, which continues to gain momentum. “We're actually branching out into more volunteer and not-for-profit groups that are looking for this product for their volunteers,” he adds.