Himmer hasn't seen a bubble soccer account cross his desk—yet. However, Philadelphia and many other insurers in a market characterized by ever-growing capacity are willing to write a wide array of sports & recreation risks despite the inherent difficulty of doing so.

“We will consider almost any sport—although we will review new types of activities very, very closely,” says Himmer. “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.

Some suggest that increased awareness of the damage that can be done to football-playing youths could factor in the drop-off in participation in Pop Warner, the nation's largest youth football program—which saw a 9.5% decline between 2010 to 2012, the largest two-year drop in decades. That development doesn't surprise Robert Jackson, who spent 11 years in the NFL before founding Cleveland-based insurance agency Jackson Dieken & Associates with fellow NFL colleague Doug Dieken.

“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 concern,” 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 settlement of a case with far-reaching legal implications; precedence has now been established. “Plaintiffs' attorneys are undoubtedly eyeing brain injury as the next class-action bonanza, similar to asbestos or construction defect, and the funding source would be coverage under general liability and excess liability.”

Although significant concussion litigation has yet to impact amateur football and other sports, brokers report that in response to concussion concerns, many insurers have been adding new exclusions to both CGL and professional liability forms.

“Most carriers are addressing the concussion or brain injury risk by either using a total brain injury exclusion, limiting the each occurrence and aggregate limits for participant legal liability, or requiring more stringent risk management controls,” Sadler says.

Likewise, amateur sports teams are responding to the growing awareness around the risks of concussions.

“We're seeing positive steps being taken by national youth sports associations in football and hockey geared towards protecting young athletes,” says Lorena Hatfield, marketing resources manager at K&K Insurance Group Inc. “It's an encouraging trend that may help contain the risk for not only concussions, but of a variety of injuries and allow young athletes to participate in healthy sports activities.”

Most team programs rely on the Centers for Disease Control and Prevention's “Heads Up: Concussion in Youth Sports” training, available on its website, to help keep players safe. Encouraging awareness also can have coverage benefits: Philadelphia offers policyholders a warranty affording concussion coverage in conjunction with participation in a concussion-management training program. Additional programs also focus on training teams in newer, seven-step test methods when concussions are suspected.

“We've learned that the 'flashlight test' is not specific and exact enough,” says Jackson. “The focus is on training the trainers and medical people across the country to better assess and analyze players, and we are helping our clients with that.”

There is also a growing movement to require baseline testing of players as part of the standard medical exam required by sports teams. “It shows us that teams are being proactive, rather than just sitting back,” Jackson adds. “That's important, because not being proactive makes them more vulnerable to claims.”

Beyond Concussions

Concussion claims aren't the only type of bodily injury claims insurers face. The most frequent claims are trips and falls—spectators falling off bleachers, players tripping in holes on the field and other more common mishaps, Himmer says. He adds that claim activity in the sports & rec space has been relatively steady over time: “Not much has changed over the past 20 years, except perhaps for a greater willingness to sue.”

Sports insurers continue to expand their loss-control efforts both to reduce claims and to distinguish their services in a competitive market. The Hanover Insurance Group, for example, offers its Insurance Professional Development series—which includes a suite of courses on topics ranging from maintenance to molestation.

“Premises injuries are where we continue to see claims, whether it's slips and falls in the locker room, tripping over equipment on the floor, or other areas where proactive maintenance programs can have a huge impact,” says Scott Grieco, president, middle market at The Hanover.

Waivers also are an essential risk management tool for teams. “Having proper waivers is a big plus when we underwrite a risk,” Himmer notes. Last year, Philadelphia introduced its Waiver Saver program to provide health & fitness club and amateur-sports insureds with waiver templates and legal resources to protect their organizations.

Strong, Competitive Market

With stable claim activity and ample capacity, the market remains competitive—and capacity in the marketplace is strong. “In recent years, the marketplace has been flooded with new programs and carriers entering the sports & recreation niche,” Sadler says. “There has never been more competition or more market options.”

Although several traditional youth sports—including football, soccer, basketball and baseball—have seen participation declines in recent years, the sports & rec market overall continues to expand. “This business exists everywhere. Every agent that's located from small towns to big cities can find groups and clubs in both youth and adult leagues, with account sizes that range from minimum premium all the way through six figures,” Grieco says.

In addition to new sports, new types of fitness facilities present opportunity for agents, including the growing popularity of 24-hour gyms and specialized facilities that reflect the way today's weekend warriors want to work out.

These new, smaller gyms combine group workouts with personal training and focus on high intensity, short duration training, Himmer says.

Younger producers, who are more likely to use those facilities, can help develop that specialization. “The universe of prospects is large, and the subject matter is very interesting for them,” Hatfield says.

K&K offers e-commerce websites to help agents seize opportunity in several specialty areas, including martial arts, gymnastic clubs and sports clinics. The most recent addition, introduced in March, is a site for outfitters and guides. K&K is developing a site for coverage of walks or runs of fewer than 16 miles.

Sadler & Co. offers an automated solution through which agents can access the company's team, league and sports-clinic programs and get a quote, pay, bind and print proof of coverage documents, certificates for field owners and claim forms in less than 15 minutes.

Account rounding is key. “On these smaller accounts, it's critical to be able to place all the coverages including general liability, accident, D&O, crime and equipment with a single source in the same transaction,” says Sadler.

“Even though we are in somewhat of a 'shakedown mode' around concussions, there will continue to be opportunities in the marketplace for agents,” adds Jackson. “Sports will always be a big part of our society.”