Why is it a smart move to add crime insurance coverage to your youth sports insurance policy? The unfortunate reality is that youth sports organizations are particularly vulnerable to theft, embezzlement, and other crime scandals. Although it may feel impossible for your club, league, or team, like a story ripped from the tabloids, crime losses occur more than you think.
The problem of crime losses in youth sports
In the New York Times article, “The Trusted Grown-Ups Who Steal Millions From Youth Sports,” journalist Bill Pennington writes that “prosecutors in several states say embezzlement investigations involving youth sports have become common.”
NBC Miami published an article titled, “Stolen Money in Youth Sports Often Goes Unreported,” disclosing “More than $500,000 reported stolen from youth leagues in Florida”.
Even smaller or local headlines, including “Youth Football and Cheer treasurer arraigned on charges he stole $280K” from Milford Daily News or “The Sport of Stealing” from Risk and Insurance, are evidence of how widespread this problem is.
The reasons crime coverage is necessary for youth sports organizations
Chris Price, Principal Program Manager of ESP Insurance Brokerage, stated, “This is the reality we face year after year. On average, we face 5-10 of these claims in our various sports programs.” The Center for Fraud Prevention (CFP) estimates there have been thousands of arrests involving youth sports in the last decade for three simple reasons:
- Members are volunteers. Not only does this result in a low level of accountability and oversight, but getting experienced volunteers to handle finances is challenging.
- The organization lacks a formal structure. Many youth sports programs do not have a board, officers, budgeting process, or system of checks, balances, and reviews.
- Volunteers are part of the same community. Organization leaders are usually connected through the neighborhood or school system, creating a trusting environment that the wrong person can easily take advantage of.
Youth leagues are prime victims of embezzlement, especially volunteer organizations where the time is likely 100% donated by parents. Just know, there is a cost-effective insurance solution that can help mitigate the loss.
The solution: how adding crime coverage to your youth sports insurance policy helps
ESP Specialty offers Crime Insurance, an optional policy for all leagues, clubs, and teams that complements your youth sports insurance policy. We strongly encourage adding this crime insurance coverage, which protects against a monetary loss caused by dishonesty or the disappearance or destruction of money, securities, or other property. Most commonly, organizations will buy limits including $10,000 and $25,000.
Per the policy, we will pay for loss of or damage to “money, securities, and other property resulting directly from theft committed by an employee,” whether identified or not, and whether acting alone or in collusion with other persons. For purposes of this insuring agreement, “employee” includes volunteers, and “theft” also includes forgery.
Crime theft happens, and youth sports organizations are at risk. Let us help you protect your organization with cost-effective crime insurance coverage for your youth sports insurance policy.
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