Accident insurance for youth athletes: what it covers

The youth sports industry in the United States is enormous. An estimate from the Aspen Institute Project Play survey places an estimate of $40 billion in annual revenue from youth sports, with families spending more than $1,000 a year, on average, for costs associated with a child’s primary sport.

The competitive aspect of youth sports means parents and players invest in earlier specialization, private lessons and coaching, travel, and tournaments. And this type of intensity early on can lead to injuries, which can be devastating to young athletes who will need to step away from their sport to heal.

What is accident insurance?

Accident insurance is an add-on policy, designed to cover expenses that primary insurance doesn’t cover. It can help to pay for things like out-of-pocket expenses, such as copays and insurance deductibles, or even dental injuries, which may be excluded from standard insurance policies.

Doesn’t general liability insurance cover these costs?

A team or sports organization’s general liability insurance coverage is designed to cover expenses related to legal claims, which can include lawsuits for bodily injuries. While it can pay for the medical expenses of injured team members and student athletes, general liability coverage is not considered a medical insurance policy.

Accident insurance is different. It is secondary insurance that covers expenses that are not covered by primary medical insurance. If a student athlete is injured during practice or in competition, that student’s medical insurance is considered the primary insurance coverage. However, there will still be expenses that insurance does not cover, such as the family’s insurance deductible. Accident insurance is designed to pay for those expenses.

Is accident insurance really necessary for a sports organization?

Youth athletics is now a big business, and can mean high costs for families. Equipment, coaching, and team travel all add up. Students who used to play whatever team sport was “in season” at the local parks and recreation facility now select a sport and specialize.

This sports specialization at a younger age can mean a higher risk of injuries, particularly if training is intense and repetitive. Youth sports are also sometimes viewed as a pathway to college scholarships, so there are emotional and financial investments families place on young athletes that can complicate situations when an injury happens.

Travel brings with it another set of risks: unfamiliar fields and conditions, and the potential for out-of-network fees if a child is injured and needs medical attention at a local hospital.

Even a moderate injury can end up generating big medical bills if even a portion of the treatment protocol is out-of-network. An out-of-network ambulance ride alone could end up costing thousands of dollars.

Having accident insurance is an important step in bridging the gap between what primary medical insurance covers and what it does not include.

Who purchases accident insurance for youth athletes?

Typically, accident insurance is purchased by the school or sports organization that is responsible for the team, but occasionally, parents can purchase this coverage directly. Some sports leagues require proof of insurance coverage when a student signs up to play; accident insurance coverage may be offered as a voluntary option through the organization, or parents can search for policies on their own.

Who is responsible for securing coverage may vary, but more often than not, it is the organization that sponsors the team in question. Communicating the parameters of coverage is important, particularly to parents who may assume that injuries that happen while playing are covered by the organization’s policy, only to be surprised that they are financially responsible through their own health insurance policy.

Having accident insurance coverage can help to alleviate the financial impact of all the medical expenses not covered by a family’s health insurance policy.

How much does accident insurance cost?

Accident insurance premiums are based on risk, and many factors are involved in the calculation. The size of the sporting organization, the number of players covered, and the type of sport or sports involved are all contributing factors. Sports with high injury rates, such as tackle football, soccer, and ice hockey, represent a higher risk and are likely to have higher premiums.

With medical expenses rising, sports organizations should consider carrying accident insurance to protect their players. Carrying accident insurance coverage may also be a requirement of your general liability insurance policy, because when an injured player’s hospital costs are covered, the family is less likely to sue the organization.

If you want to learn more about accident insurance for youth athletes, contact the experts at Rate Insurance. With access to a wide range of insurers, they can help you find the right coverage, whether you represent a sports organization in need of a policy or if you’re a parent who wants the extra protection that secondary accident insurance offers.

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