The business of fun From school sports to pro athlete insurance, Francis L. Dean & Associates serves the recreation By Elisabeth Boone, CPCU
Whenever people gather for fun, whether it’s a high school football playoff or a classical music concert, the risk of an accident is always present. A 300-pound tackle slams a running back … a concertgoer trips on an edge of loose carpet … a child is struck by a float while watching a parade … these and countless other incidents are the serious side of fun. For some 3,000 retail agents and brokers around the country, Francis L. Dean & Associates, Inc., is the underwriting facility of choice for sports and recreational risks. Dean operates as a managing underwriter in all states on an admitted and nonadmitted basis. Based in the Chicago suburb of Wheaton, Illinois, the firm was established in 1989 by Frank and Noreen Dean and their three children: Michael, Breda, and John Dean. The senior Deans gained their early industry experience in underwriting positions with CNA. “My parents recognized the need for a market that producers could come to for sports and recreational risks,” Michael Dean says. “My brother, sister, and I work alongside our parents, each bringing different skills to the mix.” Michael serves as the liaison between the firm and its insurer partners; he is also the head of marketing and product development. John is the firm’s general counsel and is also the executive contact for the firm’s 10 largest producers. Breda is in charge of internal operations and personnel. Although they are semiretired, the elder Deans continue to play an active role in making major decisions. A natural fit The choice to become involved in arranging insurance for sports and recreational risks was a natural for the Deans. “Our family has always maintained a strong participation in extracurricular activities, from youth baseball and soccer to choir and summer camp,” Michael explains. “We’re not only active participants, but we also recognize the need for the sponsors of these activities to obtain good insurance coverage. Whether you’re running a weekend basketball clinic or a year-round softball league, the facilities or parks you’ll be using will require you to have liability and accident insurance before you can play.” When his family established the firm, Michael observes, “Sports and recreational activities were growing at a rapid pace. In the early days, we concentrated on the traditional amateur sports, such as youth baseball, basketball, and soccer,” he explains. “As our expertise in underwriting these risks grew, we expanded into related fields, such as martial arts schools and dance studios. Continuing to expand our capabilities, we began to provide accident and liability insurance for almost any sport or special event,” Michael says. “Last year, we insured over 14,000 organizations.”
Underwriting is key In the sports and recreation market, as in any specialty niche, a vital ingredient is underwriting expertise. Having earned the trust of some key sports and recreation markets, Michael continues, Francis L. Dean & Associates “is a true managing general underwriter. We have full underwriting, binding, and policy issuance authority. All underwriting is done in house, as is all policy issuance.” The A rated insurers for which the firm writes business are Aegis Security Insurance Company, American Alternative Insurance Corporation, American Sentinel Insurance Company, Capitol Specialty, and QBE Insurance Corporation. The firm also has complete binding authority for Lloyd’s of London. Francis L. Dean & Associates’ staff of 29 includes seven underwriters, Michael says, and 23 support staffers handle policy and certificate issuance and other service-related functions. In addition to Michael and his siblings, the firm’s underwriters are Thomas Wojciechowski, Alyson Fredrick, Anne Han, and Mandi Ford. “All of the underwriters handle traditional risks, such as the typical amateur sports leagues, camps, and special events,” Michael explains. “Some underwriters have specialty areas. John underwrites unique or larger than usual special events, and Tom underwrites all of the college- and high school-related student risks. “Most of our agents and brokers end up working with one underwriter for all their business,” Michael says. “That helps our producers build a comfort level with an underwriter, regardless of the risk submitted.” Marketing blitz
In pursuit of its goal to become the market of choice for sports and recreational risks, Michael says, “Our firm is currently launching a marketing and underwriting blitz throughout the nation. We anticipate expanding our agency network by 20%, bringing it up to approximately 3,600 independent agents and brokers. “With respect to competitors, what makes our firm unique is that we are a true underwriting facility and not a brokerage house,” he explains. “Producers can communicate directly with one of our underwriters, who can prioritize risks and address the needs of that producer. Provided a submission is complete,” he continues, “producers can expect a formal quotation within one business day. When coverage is bound, a formal binder or the actual policy can be faxed or e-mailed to the producer within hours if necessary.” In the sports and recreation market, speed of processing often is essential, Michael points out. “Rapid quotes, rapid policy issuance, and the stability of our insurers are what we consider ‘the Dean advantage,’” he says. The risks that Francis L. Dean & Associates write fall into three main categories: sports accident coverage, sports liability coverage, and special risk programs. Sports accident coverage. “Every game is a big game,” Michael declares. “Whether it is a regularly scheduled season game or a week-long sports camp, amateur athletics is always the site for intense competition. Athletes are often asked to compete at their highest levels and, as a result, are more likely to run the risk of injury.” To address these risks, the Dean firm offers sports accident plans with limits ranging from $2,500 to $250,000. Coverage can be arranged for leagues, tournaments, camps, all-star events, and alumni gatherings, among others. Sports liability coverage. “In the past, liability coverage for sports camps or leagues often was too costly, too limited, or not available at all,” Michael observes. “Schools, coaches, and directors were forced either to pay extremely high premiums or to run athletic camps or leagues without insurance protection, which meant running the risk of personal exposure to claims or lawsuits.” Francis L. Dean & Associates developed a comprehensive program to meet the needs of schools, park districts, coaches, directors, and players who participate in sports camps and leagues. “With an attorney and paralegals on staff, clients are guaranteed their coverage,” Michael says, “and in the event litigation occurs, clients can count on an experienced attorney and his staff to address their concerns.” Sports liability coverage is written on occurrence forms on either an admitted or nonadmitted basis, with limits up to $1 million and aggregates to $2 million. Excess or follow-form coverage is available. Athletic participants are covered, and optional hired and non-owned automobile liability coverage can be included. Pursuant to the Federal Risk Retention Act of 1986, Francis L. Dean & Associates is the administrator of the Sports and Recreation Providers Purchasing Group and of Sports and Recreation Providers Association Management, Inc. Special risk programs. Dean can design accident and/or liability policies to cover medical expenses or civil litigation costs incurred by individuals who attend or participate in a wide range of events and activities. Events and groups for which coverage can be arranged are listed in the chart above. Shape of the market Asked to characterize the current market for sports and recreational risks, Michael says, “Participation in these activities continues to grow, as does the need for coverage.” At the same time, he notes, “Fewer and fewer insurers are willing to enter this marketplace, and many seem not to fully understand the various exposures. It may simply not be cost effective for an insurer to begin writing these risks on a case-by-case basis.” Like many other niche markets, sports and recreational risks have been attractive to some standard carriers in good times, only to lose their appeal when times get tough. “Too many insurers have entered and then left this marketplace because they group all sports and recreational risks into one broad rating system,” Michael remarks. “They don’t look at all aspects of the exposure, so they may assume that a peewee tackle football league is similar to a high school tackle football league when they’re actually two completely different risks with completely different exposures. For an insurer that rates both risks the same, the losses will be significant.” What about pricing in today’s market? “Pricing is currently soft for traditional risks such as baseball and soccer,” Michael says, “but the more unique a risk becomes, such as a special event, the higher the pricing.” Praise from a retailer Of the approximately 3,000 retail agents and brokers who place sports and recreational risks with Francis L. Dean & Associates, many have just an occasional need for the firm’s services, whereas others have a larger book. An agency that has had a long-standing relationship with the Dean firm is Langan, Haeger, Vincent & Born, Inc., which is also based in Wheaton. “We’ve been working with Dean since it opened its doors in 1989,” says Kurt Parent. Although his agency doesn’t specialize in sports and recreational risks, Parent says, “We do a fair amount of this business, and we place a large share of it with Dean. They’re always the first market we go to. Their products are priced very competitively, and they’re very quick to respond to our needs. “We insure a number of private schools here in the Chicagoland area, for which Dean provides student accident coverage,” Parent says. “We also go to Dean with children’s baseball and football leagues, for which they provide accident and liability coverage. “Everybody in our agency who has dealings with them has gone to their office and met them personally,” Parent continues. “Over the years, we’ve developed a relationship with them that is more than just e-mail and fax. That personal touch means a lot.” The personal touch is a hallmark of the service provided by Francis L. Dean & Associates, as are comprehensive products, a high level of underwriting expertise, and stable, A rated markets. * For more information: |
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