If you’ve never operated a sports team or league before, you’re probably unfamiliar with sports insurance and all that it entails. Sports insurance is not just for pro athletes or national leagues like the NFL, NHL, NBA, MLB, and so on. In fact, every team, from a professional level to an amateur children’s recreational team, should be covered by sports insurance. Coaches, referees, and even the smallest rec leagues should invest in sports insurance to protect themselves from liability.
There is a lot of room for potential liability during a sports game. Players could get injured, spectators could get injured, expensive equipment could be damaged or lost, and the list goes on. Even across different sports there are different potential liabilities – basketball insurance may cover different concerns than baseball insurance.
Learn what needs to be covered under your sports insurance policy so that you, your team, and your league are protected in case of any accidents. Figure out what insurance you need now, so you can enjoy the game without any worries.
Sports Insurance Policies
A comprehensive sports insurance package will protect your team or league from any possible liability. There are different policies that you will need to find full coverage, so be sure that your insurance broker includes each of these policies.
General Liability Insurance
General liability insurance is the first and most basic form of insurance that you should invest in. This policy covers player or spectator injury. It also covers damage to property in cases where the league or team was negligent.
While you may think that your league holds itself to extremely high safety standards and wouldn’t be liable for injuries or damage, you’ll still need this insurance to cover legal fees to defend that position, should someone sue for damages.
Accident insurance covers injury costs. This includes the cost of medical bills for injured players or spectators. While your league may require that players have health insurance, serious injuries can result in significant healthcare charges. A family may not be able to afford to cover the medical bills with their health insurance, in which case they could seek damages from the league. Accident insurance will cover these medical costs.
Contact sports and even non-contact sports can result in injury pretty easily. Spectator injury may not be your primary concern, but if a ball flies into the crowd or someone slips on a set of bleachers, injury can occur. It is vital that you are prepared for these potential injuries. If you don’t have accident coverage, one bad injury could bankrupt your entire league.
Directors and Officers Liability
Directors and officers liability insurance covers the business end of the league, including employees. This policy protects staff including directors, officers, employees, and even volunteers. It also protects the organization itself as a whole.
Directors and officers liability insurance is generally used in cases of lawsuits alleging discrimination, wrongful termination, or suspension. These lawsuits may come from rejected or terminated employees, or even players who felt discriminated against by the league for some reason. This policy also covers lawsuits regarding ADA compliance issues.
Equipment insurance is not a top priority, but it can be worthwhile. A full coverage sports insurance plan should ideally include equipment insurance. This policy covers loss or damage to equipment, whether it happens via natural causes, theft, or vandalism.
Depending on what sport you’re playing, some equipment can be extremely expensive, making damage or loss a costly price to pay. Keep in mind that equipment could include items like soccer nets, basketball nets, or other big ticket items that will be expensive to replace.
Again, this policy is not the most important one for a sports league or team, but a full coverage sports insurance policy should include crime insurance. Crime insurance covers cases of theft or embezzlement by employees or unknown parties. While this may not be a top priority, there could be significant losses in cases of theft, so it’s best to be covered.
Sports Insurance Coverage
A comprehensive sports insurance package should cover all of these policies: general liability insurance, accident insurance, directors and officers liability insurance, equipment insurance, and crime insurance. Depending on which sport and age group your league serves, there may be other policies or amendments you’ll need to include for full coverage.
Sports insurance is not the most fun or exciting part of running or working for a sports league – not by far. It is a necessity, however, and when an accident, loss of property, or injury occurs, you’ll be glad that you’re covered. Failing to invest in sports insurance could result in serious financial loss or even the league being shut down, so be sure to invest in a full coverage, comprehensive sports insurance plan. Get coverage now so that you can enjoy your love of the game without stressing over liability.