Whether you operate a league, camp, school-related program or other sports organization, as a responsible proprietor, you must understand various risks and exposures that could threaten your finances and imperil other parties. Even a single accident or error could have far-reaching financial ramifications and jeopardize your organization’s future. Given these stakes, your organization should prioritize understanding liability risks and appropriate insurance solutions.
What Liability Risks Do Sports Organizations Face?
Your athletes, coaches, spectators and other participants and stakeholders all rely on you to establish and maintain adequate risk management and loss control measures to allow everyone to safely enjoy their athletic ventures with peace of mind. Unfortunately, incidents may be inevitable regardless of your organization’s dedication to safety.
Although the exact perils and potential incidents that your organization must account for may vary depending on your specific operations and unique circumstances, consider the following examples of incidents for which you could bear liability:
- Athlete injuries—If an athlete is injured during a competition, practice or other official function of your organization, you may bear liability for their medical expenses and financial losses.
- Employee bodily harm—You could be held liable for on-the-job injuries or work-related illnesses suffered by your coaches, trainers or other staff.
- Third-party losses—Spectators, passersby and neighboring properties could all accrue losses as a result of your operations, potentially putting you at risk of significant financial consequences.
- Improper conduct—Claims of harassment, misconduct or abuse against your organization and its employees can be costly and may arise both from athletes and employees.
- Vehicular accidents—Sports organizations may often use motor vehicles to transport athletes, staff and equipment, creating significant potential road-related risks and exposures.
- Professional errors—Your organization’s coaches and trainers could be accused of providing improper guidance or instruction to athletes.
- Cyber incidents—If your sports organization stores sensitive data, such as medical records and social security numbers, a data breach could leave you responsible for resulting losses.
How Can Insurance Help Protect Sports Organizations From Liability Risks?
Many types of insurance can be tailored to curb your organization’s liability risks and exposures. Given the many potential incidents for which you may bear responsibility, assembling and maintaining a versatile insurance portfolio should be a top priority. When doing so, consider the following components:
- Participant injury liability coverage
- Employer’s liability coverage (usually included in workers’ compensation insurance)
- General liability insurance
- Abuse liability coverage
- Commercial auto insurance
- Professional liability insurance
- Cyber liability insurance
- Commercial umbrella insurance
Get the Right Coverage
Accidents happen despite your organization’s commitment to the health, safety and wellness of your athletes, employees and others. Even if you are eventually absolved of responsibility for incidents, the financial and reputational consequences of allegations can still have far-reaching ramifications.
The dedicated staff at Bene-Marc Inc. are here to help protect you from these difficult situations. We specialize in helping sports organizations secure optimal insurance solutions and will work with you to tailor coverage to your needs. Contact us today to get started.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.