Summertime is approaching. For enterprising insurance agents and brokers looking to expand their book of business, that means some big opportunities in sports, recreation and local charity events.
As senior vice president of the sports division for K&K Insurance Group, Scott Lunsford has watched agents of all backgrounds find success—and fun—with these types of programs. And while larger, national association and events already have coverage, many youth or local adult leagues go uninsured, presenting a great opportunity for a main street agent.
“Anyone with the proper insurance license is able to work with K&K and join in the fun of offering unique insurance to the sports industry. Having a sports interest only makes it that much more enjoyable for the agent,” Lunsford said. “Sport associations generate decent commission opportunities for agents. If the agency has ability to offer coverage using the internet or offer other services other than insurance, fee income is a possibility as well.”
Accounts that are especially untapped are small youth organizations and start-up travel teams of all sports, Lunsford said.
Typical coverage for these types of accounts involves participant legal liability with limits of $1 million, and excess or secondary accident medical insurance. One other form of liability insurance is also particularly important, says Stephanie Waldron, K&K underwriting manager for sports.
“Sport sponsorship liability is another area of potential growth in the industry,” Waldron said. “It’s common in the motorsports world for corporate event or team sponsors to purchase their own liability coverage for this exposure and there is a new trend in the sports industry for the same product.”
Understandably, even if small sports accounts do have insurance, many agents will find what they do have is not sufficient. That generates a great opportunity to drive a wedge between the client and their current agent, and generate some extra income as well.
One risk many organizations are unprepared for is the dramatic increase in concussion or head injuries. Concussions account for nearly 15% of all sports injuries reported to athletic trainers, according to the National Association for Sports Safety, and yet many teams don’t carry the insurance to cover what can sometimes cost $18,000 in medical bills.
Similarly, sexual abuse/molestation coverage often goes unheeded. It can be a difficult coverage to place, but even if a volunteer or employee is innocent, the resulting legal implications can cost an association big.
Agents who manage to identify these risks and provide proper coverage will go a long way in ensuring they remain a valued presence in one of the most rewarding business sectors out there.
Be sure to check out Insurance Business America’s week-long series on sports and recreation insurance, highlighting opportunities in events, mass merchandising, recreation venues and motorsports.