As a minimum, a sports organization should purchase three different insurance policies or a package containing all. Some sports organizations may also need additional policies such as Property, Auto, or Workers’ Compensation.

1. Accident Insurance – Pays for medical bills on behalf of injured participants. This policy assures that your participants and volunteers will receive proper medical treatment. Also, most lawsuits filed by injured participants are because the medical bills are not covered by the sports organization because of inadequate insurance.
   
   
2. General Liability Insurance – Defends your organization against law suite arising from a spectator or player that has suffered bodily injury or property damage due to the negligence. Covered persons should include the sports organization itself, directors, officers, and volunteers. Lawsuits are filed regularly for injuries that occur at games/practices and during off premises non-sport activities. Even if you were not negligent, you must defend yourself in court.
   
   
3. Directors & Officers Liability – Covers the sports organization itself, directors, officers, and volunteers, against a class of lawsuit, which is not covered by the General Liability policy, alleging that your sports organization’s negligence has resulted in economic injury to another party or that another party’s rights under state, provincial or federal law have been violated. These types of lawsuit include discrimination, wrongful termination or suspension of personnel or players, or failure to follow rules or bylaws. This policy also pays for your defense and all related costs including cost of settlement or jury verdict.

Look for:

• Maximum Medical Limit – Avoid any policy with a limit less than $10,000 as it won’t be enough to pay the medical bills for a moderate to serious injury. You may also want to consider raising your limit to $100,000 or more
  
  
• Internal Payout Schedules – Avoid any policy that limits surgeon’s fees, hospital room and board, doctor’s visits, etc. under a separate schedule as they often result in an underpayment of medical bills and lead to dissatisfaction and frustration on the part of parents and league administrators.
  
  
• Excess vs. Primary – Primary Insurance pays whether or not there is any existing coverage (such as parent’s health insurance) and may even allow a double recovery. On the other hand, Excess Insurance only pays what medical bills aren’t already covered by existing coverage (such as parent’s health insurance). When there is no existing insurance in force, Excess Insurance becomes Primary and pays up to the policy limit. If there is existing insurance in force that does not pay for all of the bills due to its own deductible or coinsurance, Excess Insurance will fill in the gaps and pay for such deductible or coinsurance. Excess insurance is better because it allows a league to purchase affordable coverage with a limit high enough to cover a moderate to serious injury. Primary insurance is so expensive that it results in a Maximum Medical Limit that is either too low or that is eroded by restrictive Internal Payout Schedules — see above.
  
  
• Deductible – A deductible is the amount that the injured person pays out of pocket before the insurance comes into effect. In other words, if there is a $250 deductible and $1,000 in medical bills, the injured party (or parent) pays $250 and the insurance company pays $750. In amateur sports, deductibles commonly range from $0 to $250 per claim and can result in substantial premium reductions. A “Corridor Deductible” applies both when there is existing insurance in force (parent’s health coverage) and when there is no existing insurance. On the other hand, a “Disappearing Deductible” only applies when there is no existing insurance in force.
  
  
• Covered Persons – Your policy should cover all athletes, coaches, managers, league officials and volunteers. Avoid policies that limit coverage to players and coaches only as there are other volunteers and league officials that deserve this important protection.
  
  
• Covers While – Your policy should cover while participating in all sports organization authorized activities under adult supervision including games, practice, tournaments, non-sport activities, and group travel to and from. Avoid policies that limit coverage to games and practice only as most amateur teams engage in group travel and numerous other non-sport activities such as awards banquets, picnics, cookouts, attendance at professional ballgames, etc.