The Cost of Insurance
Upon completion of the "Membership Fees Skyrocket" article, I thought coaches might be interested in some additional information about US Diving insurance fees. A few years ago in an article I mentioned that insurance could be acquired on the open market much cheaper than US Diving offers. Many missed that point and related it to the AAU because some knew that I had been trying to get the AAU to bring diving in as an alternative to US Diving. I did mention prices for their insurance and one coach that I am aware of took advantage of that. However the AAU insurance is not what I was referring to at that time.
In lieu of the many situations that have arisen in USD, I am going to reveal some facts pertaining to the type of insurance that is available to anyone who is not a US Diving member. To keep a privacy promise, I will not reveal the identity of the person or company I am referencing. I will try to be as general as possible for those reasons.
Remember that US Diving says that half of your fees go toward the cost of insurance but your fees are doubling. Why? This is what's happening right now. A $1 million liability insurance coverage is costing $2.30 per diver per year. The supplemental accident insurance is another $3 per diver per year. This insurance is being offered in US Diving for almost $40 per diver per year. In this example it only costs around $5 per year per diver. For coaches involved in this program insurance is priced at $2 per coach per year as opposed to the proposed USD's $150 per coach per year. That fee covers coach, club and facility just like US Diving. Does that sound possible with all that US Diving keeps telling you? It's true! The accident insurance is the same kind of supplemental insurance. Again that's what's covered after the parent's insurance runs out. The liability coverage is also the same. Look at these figures and tell me that you're getting the best bang for your buck … or are you being scammed? The program that is currently doing this covers these costs by charging a membership fee just like USD except it's much cheaper. The final cost is determined by the number of divers in the program which includes a $50 service fee for all of this coverage.
Here is another interesting tidbit. All of the above is occurring right now with absolutely no requirement for certification. That's right … no certification requirements whatsoever. Imagine that! US Diving is doing worse as a large group than one person has done with a small group of divers. This is why I have continually questioned most US Diving's financial dealings along with the unnecessary certifications. Does this look like they have your best interests at heart? Do they appear honest? Are they working for you or just picking your pocket? I don't see one positive answer to any of the questions in this article. Whoever is responsible for procuring insurance obviously is not doing their job very well… or are they?
How can the leadership of US Diving state that they don't have enough money, when they appear to be making a huge profit from just their divers and coaches? Is there financial misrepresentation? Remember when you do this math, you are only dealing with the insurance aspect of the membership fees. What happens with all of the other money they control? Is it being managed as well as this insurance debacle? In any case it has sparked some discussion to consider organizing a diving association separate from US Diving. After reviewing the cost, the potential for increasing the number of participants and contests, this issue becomes another viable alternative to US Diving.