Sports Insurance for Businesses

Activities taking place in a sports facility vary in terms of scope and risk of injury. A user-group policy ensures that policy premiums are rated according to the risk exposure of the activities taking place in your facility versus a blanket rate being assigned to all activities. For example, a sports facility could be charged $100 per 100 participants who are playing soccer, but $350 per 100 participants who are playing tackle football.

Given the high exposure to potential cyber claims within youth organizations, comprehensive cyber insurance is necessary. If a cyber-criminal gains access to an organization’s computer network, first party coverage is needed to pay the costs associated with cyber extortion claims as well as the expenses associated with a forensic investigation to determine how the breach occurred. Youth sport organizations can also store a plethora of sensitive information about its members. If this information is accessed by an unauthorized party during a cyber breach this could have serious financial ramifications for the organization. Cyber insurance is critical for the organizations’ defence should a lawsuit brought against them by a third party.

Errors & Omissions insurance reimburses a third party for financial damages that party has sustained as a result of actions taken by the Named Insured. When exploring coverage for your sports facility, it is important to be aware of exposures to a potential Errors & Omissions claim as this type of risk is not always clear and obvious. For example, if an athlete loses an athletic scholarship due to an injury sustained at your facility, they could bring a lawsuit against your organization for the financial loss experienced. An Errors & Omissions policy would be needed to respond to this.

While the cost of Directors & Officers Liability insurance is rising for many sport-related associations, type of coverage is vital as it offers invaluable protection for your association’s Directors and Officers, many of whom are unpaid. If the association’s invested stakeholders allege that its Directors & Officers are negligent in guiding the affairs of the association, this coverage is necessary to pay the costs attributed to lawsuits. It can also cover the damages awarded to the plaintiff, which may otherwise need to be paid personally by the association’s Directors & Officers. Canada is continuing to become a more litigious society which means ever increasing court costs and various legal expenses. Obtaining Directors & Officers insurance will aid in protecting against these costs.

Yes, no matter what type of sport-related policy you are obtaining, coverage should be discussed with a broker. This will help you avoid the risk of obtaining a cheap policy with numerous exclusions that don’t provide adequate protection.