Sports insurance (also known as event insurance) is a special type of coverage that may be purchased by a sports league or sports agencies if they need the protection that this type of coverage offers. Sports insurance provides the policy owner financial protection from accidents, lawsuits, and damages caused by or during a sporting event that their organization is involved with. Because a sports league may be a legal or business entity, it requires its own insurance plan and is unlikely to be covered by the personal insurance policies of the individuals involved.
Available Sports Insurance Policies
Sports insurance isn’t just a single type of insurance. There are actually five types of sports insurance products. If you’re a member of a sports organization, then you should consider buying all of the following types of coverage to make sure you’re prepared for any contingency:
Accident Insurance
If any non-player is injured during one of your organization’s events, accident insurance will pay for any related medical costs. A non-player could be a volunteer, a spectator, or a child. The sad fact is that many people don’t have medical coverage, and they may be unable to pay for any treatment received. This coverage ensures that the injured parties get the care they need and reduces the likelihood that you will be sued.
General Liability Insurance
This insurance is for when a spectator or player alleges that they’ve suffered injury or property damage due to the organization’s or league’s negligence. When getting this type of coverage, make sure that it not only covers the sports organization, but also its directors, officers, employees, and volunteers. This policy will pay if you settle out of court or a court rules against you. Even if you are sued and win in court, you’ll have to pay defense lawyer fees. General liability insurance will pay those lawyer fees for you.
Directors & Officers Insurance
This protects your sports organization from people who file lawsuits claiming that the mismanagement of your sports organization violated their rights under state or federal law or caused them economic injury or financial loss. For example, a spectator may claim your sports organization violated the Americans with Disabilities Act (ADA). Or, a player or league staff may claim wrongful termination. As with General Liability Insurance, this type of policy will pay if you settle out of court or a court rules against you. It will cover defense lawyer fees as well. Despite the name of this coverage, the policy should go beyond covering directors and officers and include employees and volunteers as well.
Crime Insurance
This insurance protects your organization from financial losses suffered if your employees or volunteers embezzle money, or someone from outside the organization steals money.
Equipment Insurance
Simply put, equipment insurance covers the loss of your organization’s sports equipment (e.g., uniforms, playing equipment, concession equipment, scoreboards, fences, bleachers, and small buildings) as a result of fire, lightning, wind, theft, and vandalism.
Failure to purchase any of these policies could lead to you being sued for managerial negligence if a significant claim is not covered. Some sports organizations may need additional policies, such as Property, Auto, or Workers’ Compensation.
What Are The Advantages Of Sports Insurance?
The biggest advantage of sports insurance is that it protects the financial health of a sports league, team, or organization. Even a well-funded league or team could quickly fall into financial turmoil after just a single lawsuit. This could lead to the termination of employees or even spell the end of the organization. With so many people relying on a league for income, sports insurance is a necessity.
Sports insurance also ensures that participants who are injured during play can receive medical treatment promptly, regardless of their personal medical insurance coverage.
How Can You Get Sports Insurance Coverage?
If you’re the owner or manager of a sports league or team, speak to the experts at JMG Insurance Agency for more information about your sports insurance needs or to purchase your own policy. JMG Insurance Agency works closely with numerous insurance companies to provide clients with a wide range of options, making it easier to find a policy that will provide the right coverage for your sports organization. The company prides itself on providing customized insurance solutions to clients in Connecticut, New York, New Jersey, Massachusetts, and Hawaii.