Sports Insurance Explained

Sports often invite accidents, and insurance cover is vital to protect both those participating in sports and those who are either teaching or organizing competitions and events. No matter what the sport, it's important to carry enough insurance to cover injuries to players, volunteers and spectators.

Who needs sports insurance?

Everyone involved in organized sports needs sports insurance. This includes players, trainers, coaches, associations, clubs, professional organizations, directors and officers. Even managers and agents that make a living working for professional sports players need coverage to protect their livelihood.

What typically does sports insurance cover?

There are four primary types of sports insurance:

"Accident insurance covers amateur players and professional athletes, usually including medical expenses from ambulance to emergency care to rehabilitation. Depending on the insurer, there may also be coverage for loss of income and career ending injuries for professionals.

"Liability insurance covers players and spectators when organization or club members are negligent and people or property are injured or damaged as a result. It can also cover the organizers and directors of sports organizations in the event of claims other than medical, including errors that break government regulations. Professional indemnity can protect coaches, instructors and other officials involved with sports.

"Property insurance covers the property owned by the club, association or organization, whether amateur or professional.

"Contingency insurance covers the events held by clubs, associations or other organizations, including cancellation or postponement due to adverse weather or other situations beyond normal control.

What typically does sports insurance not cover?

Sports insurance typically covers a specific sport, so if your group or organization is insured for one sport and holds an event for a different sport, the event and players will not be covered. Also, insurers tend to sell the different types of sports insurance separately. Even if you buy a sports insurance package, make sure you know what is included. Your group might find the package includes liability and accident insurance but no property insurance, for example.

Additional insurance products that policy holders might need in this area

It may be tempting to choose only accident and liability insurance, but the first time your organization loses thousands of dollars due to weather cancelling an event, you'll wish you had a contingency policy. Look carefully at all the options available to protect your group. Professional and other organizations owning a stadium or other property should strongly consider property insurance.

Also, if the organization is only carrying very basic accident or liability insurance, it's important to recommend to players that they carry their own sports or at least health insurance, to make sure all the care they may need after an injury is provided.

Additional coverage for a sports insurance policy

If your group is holding large events, it would be wise to buy increased limits on your liability cover. If more than one or two people are injured during your event, the expenses can easily climb past the limits on your policy and cost more than your organization can afford.

Also, if your group is offering an expensive prize for contests such as half-court shots in basketball or a golf hole-in-one, a prize indemnity clause in your contingency insurance will pay the prize for you.
What will sports insurance typically cost?

The cost for sports insurance depends on a wide range of factors: the typical risk involved in the specific sport, the size of the events involved, the types of insurance purchased, etc. If your club or organization is a small local one, check with the parent organization for your state, region, or the country to see if insurance is offered through them. This is usually much less expensive than taking out policies on your own. If there is no parent organization, look for an association of clubs similar to yours that might band together for insurance purposes.