Managing and running a sports league is like running a business. Various managers function as employees and the game is the product. Players rely on the league to meet their service needs. Sports leagues can enjoy various types of commercial insurance. Let’s discuss some of the types of protection available.
Insuring your team means making sure they have resources at their fingertips. That means insuring your commercial assets. You’ll be able to make a comeback if something happens that hampers operations.
Why Commercial Insurance Helps Leagues
Leagues often have something of a corporate structure. Owners, managers, coaches, and desk employees might all organize operations and play. You don’t have to be a major league team to have these participants. Even amateur teams have commercial needs.
With commercial insurance, you can insure the business side of the team. You can increase your financial security, and that allows the team to keep operating. The cycle continues where you allow your team to play, make money and feed it back into the company’s assets. Thus, this coverage equals future success.
Potential Commercial Insurance Options
Based on the league specifications, several types of commercial insurance might prove beneficial.
- Property insurance can cover buildings and possessions belonging to the league. For example, if a fire damages the team’s uniforms, this coverage might apply for recovery.
- General liability coverage insures damage you cause to third parties. A supporter who gets hurt in the team office might qualify for this coverage to pay their medical bills.
- Employment practices liability coverage (EPLI) covers allegations of mistreatment or discrimination by the league against employees or prospective hires. It might help settle lawsuits, pay restitution or cover other costs.
- Directors & officers coverage extends professional liability insurance to decision-makers, like governing boards. In case of mistakes or misconduct, this coverage might protect the accused parties.
- Cyber liability protection insures the team against personal data losses. If a hacker steals the team's private data, insurance might provide damage control. It might pay regulatory fines, and help others recoup their losses in case their identity comes under threat.
- Workers’ compensation insurance pays supplementary income to league employees who get hurt on the job. According to local law, many leagues must provide coverage. Keep in mind, coverage might not apply to players themselves.
- Commercial auto insurance insures league vehicles. Most states require this coverage. Your policy can usually provide liability and physical damage protection.
Depending on the size and function of your league, you might not need all these types of coverage. In other cases, more protection might prove beneficial. So, talk to your league insurance agent at 800-247-1734. We’ll help you determine the most appropriate coverage.
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