Key Selling Factors for Abuse Policies

Posted on: January 18, 2017 by NSM Sports Insurance

Sexual assault claims are undeniably upsetting and occur frequently in youth sport organizations. Not only can these assaults take place between coaches and players, but they can also involve assistants, parents, and other athletes.

Such abuse ranges from inappropriate comments to unsolicited actions, and can happen anywhere from the locker room to the bus. Whatever the case, the claims that arise are both emotionally damaging and extremely costly. For example:

  • A volleyball coach threatened that girls would be removed from the team for refusing to have sex with him.  Several of the victims filed a lawsuit against the coach, school, and amateur sports governing body.  The case settled for $2 million.
  • A boys’ basketball coach sexually assaulted 5 players, and the case settled for $3 million.
  • A track coach drilled a peep hole into the girls’ locker room, which he used to film young girls undressing. Multiple lawsuits resulted–some of which have settled for a combined total of $1 million.

How a Strong Policy Will Help

It is important for youth sports organizations to secure an insurance policy that has appropriate coverages and limits. A strong policy:

Provides Defense and Indemnification
This will ensure that defense and settlement costs are covered in the event of a claim.

Has A Reasonable Coverage Limit
Plaintiff attorneys strive to obtain a settlement equal to an insurance policy’s full limits. Generally, this means a $1 million settlement—no more, no less. If the insured possesses more coverage, the attorney will make every effort to mold the case and reach the higher policy limits.

Keeps Overall Cost of Claims Low
The higher the coverage limit, the more work an attorney will do to win the full amount. Consequently, the insured will spend significantly more time in litigation with a higher chance of going to trial, resulting in increased defense costs.

Is Sustainable
When it is time to renew a policy, high limits may make the process more difficult. If the organization has cases pending, or has recently paid a high payout, the premium will likely increase upon renewal.

All of these factors are necessary to consider when selecting an insurance policy. For more information about how Sports and Wellness Insurance can provide comprehensive abuse and molestation coverage, contact Program Director Christopher Smyth at or 610-808-9599.

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