By its very nature, sport is unpredictable. No one knows at the outset who will win a match. Players could suffer injuries. Officials could make biased calls. Fans could become overly rowdy. Anything can happen—that’s why people love it so much.
However, that uncertainty also generates significant risk for owners or managers of sports entities. With so many variables threatening health and safety at a match, unpredictability is sport’s greatest draw and one of its biggest hazards.
When you run a sports club, league, association or governing body, you need a tough sports insurance policy that provides solid a defence against never-ending uncertainty.
Common Sports Insurance Covers
Every sports entity is different—some are local amateur clubs with just a few members, others are national or international professional sports governing bodies with thousands of members. This wide disparity between different sports entities means that one insurance policy will not fit everyone.
To make sure your sports entity is appropriately covered, secure a bespoke policy tailored to your entity’s specific risks. Insurers will work with you to pick the most essential covers for your organisation. The following list, although not exhaustive, contains the covers most commonly available as part of a sports insurance policy:
- Property cover protects buildings, fields, training grounds, offices and any other sites that you may own. If you own a stadium, you will also want to look into stadium-specific cover. Contents cover encompasses what is contained on the property, including specialist equipment such as scoring systems or recording and broadcast gear, usually under an ‘all risks’ basis.
- Employers’ liability cover is mandatory in the United Kingdom if you have at least one employee, it covers legal liability resulting from employees’ or volunteers’ work-related injury or disease.
- Professional indemnity cover covers claims made against your organisation for negligent acts, errors or omissions, libel, slander, defamation or advice given by persons appropriately qualified, such as a coach, physical therapist or instructor.
- Legal expenses cover defrays the potential costs of legal action brought against your organisation.
- Event cancellation cover defends against financial loss due to the cancellation, postponement, curtailment, abandonment or relocation of a planned event.
- Public liability cover and event liability cover can provide protection for third parties injured on your grounds or at an event.
- Directors and officers cover includes protection from claims brought against directors, officers and committee members for wrongful acts and their accompanying legal costs.
Additional Sports Insurance Covers
The covers in the preceding list are just a few possible options for sports entities. Many sports insurance policies are fortified by a selection of additional, more specialised covers, some of which are included in the following list:
- Motor fleet cover shields your organisation from the risks that go along with having a fleet of vehicles, which is usually defined as at least five cars. Only larger sports entities will need this cover.
- Sports travel cover indemnifies your organisation and any person acting in an official capacity on behalf of your organisation while travelling.
- Personal accident cover extends protection to sporting professionals or officials against financial losses resulting from a severe or career-destroying injury.
- Transmission failure cover applies to broadcasters or organisers when contracts hold them responsible for a loss of revenue due to an inability to broadcast an event on TV.
- Cyber risks cover encompasses damages due to a wide variety of cyber risks like loss of information, cyber terrorism and business interruption due to the failure of your computer systems.
- Kidnap and ransom cover pertains to high-salary sports stars and their families who may be kidnapping targets. The cover provides cash, goods or services to meet an extortion demand.
- Abuse cover insures coaches, their assistants and any other of their employees accused of abuse.
- Member to member liability covers liability between members of the same sports entity.
- Motorsport cover preserves motorsport teams’ vehicles, tools and equipment from financial losses associated with their sport.
Common Sports Insurance Exclusions
Sports insurance policies typically consist of a diverse selection of covers tailored specifically for the organisation. This patchwork quality means your organisation can secure a bespoke policy that addresses almost all of its risks. However, there are a handful of exclusions shared by most, but not all, insurers. Some of those common exclusions include:
- Dishonesty and fraud
- Nuclear risks
- Activities at height above 3 metres
- Aircrafts or watercrafts
Bespoke Sports Insurance Is Best
Whether your organisation represents 10 or 100,000 members, you still need a robust insurance policy to withstand the uncertainty and hazards which go along with running a sports entity. Do not worry—the insurance professionals at Business Insurance Service are here to help. We have the expertise to find you the perfect policy, so you can enjoy the game worry-free.