What You Should Know About Sports Organization Insurance

Sports organizations have a legal duty of care to ensure the safety of players, staff and spectators. Whether it’s during practice, social events, or in its day-to-day operations, sports organization insurance can guard you against the risks that come with running a team, club, tournament and/or a league.

Professional Sport Teams Insurance
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Risk Management for Sports Organizations

Insurance is only a part of a sports organization’s risk management program and all of the following are other risk management recommendations to help protect your sports organization.

  • “Ensure equipment meets the standards set by the Canadian Standards Association
  • Determine an appropriate supervisor-to-user ratio whether it’s for youth sports or recreation activities. The appropriate ratio will depend on the type of activity, the equipment being used, the age of the participants, etc.
  • Screen patrons for health limitations that may make it unsafe for them to participate in your program.
  • Use signs to warn patrons of any hazards. Signs should use symbols and French and English text where possible.
  • Implement a screening and hiring standard policy to ensure that you employ only qualified people. You may wish to require a criminal background check for employees and volunteers working with the elderly or children… 
  • Ensure the facilities and equipment are regularly inspected for damage and repaired or replaced as necessary.” 

Sports Organization Insurance What’s Covered?

Our sports organization insurance package can be customized to the needs of your league, club, association or team and can cover any or all of the following participants involved with tournaments, games and practice etc:

  • Directors & officers
  • Employees & volunteers
  • Managers
  • Coaches
  • Officials & referees
  • Players and teams
  • Spectators & participants
  • Sports facilities & offices
  • Youth sports clubs
  • Volunteers

Sports Organization Insurance Coverages

Commercial General Liability Insurance can provide medical expense and legal liability coverage including defence costs, settlements and awards for damages for lawsuits alleging bodily injury and physical damage, property damage, false advertising and libel & slander. 

If your sports organization hosts special events, games, matches or banquets, you will also need the protection of Event Coverage Insurance which can cover your liability exposure in case an injury to participants happen at your event, the property is damaged or, if alcohol is served at your event, an intoxicated patron who attends your event causes bodily injury, loss of life or property damage either during the event or after they’ve left it.

Property Insurance protects building and contents for both facilities and head offices in the event of fire, flooding, windstorms, earthquake, burglary, vandalism and other perils. You may also need to include:

  • Business Interruption coverage for income lost due to an insured peril; and
  • Extra Expense coverage for the costs of setting up a temporary location following an insured peril.

Directors & Officers (D&O) / Board Insurance protects the directors and officers of your sports organizations in case of lawsuits alleging mismanagement, conflict of interest and other ‘wrongful acts. 

What is Sports Insurance? 

Sports insurance covers your sports team, including all staff and yourself as the owner, from the cost of lawsuits alleging negligence leading to property or physical damage, bodily injury, as well as false advertising, libel or slander. Sports teams have a fairly high-risk exposure, and sports insurance is designed to shield owners from the risk that comes from the operations of a professional team. A comprehensive sports insurance package can also address a team’s risks associated with owning property, hosting events, and more, depending on each situation. 

Sports insurance allows teams to operate without fear of losing their assets if something goes wrong during the regular operations of the team. 

What Does it Cover?

With Commercial General Liability Insurance coverage, a sports team is covered for medical and legal expenses, including court costs and settlement payments, and other potential costs associated with claims made against it alleging bodily injury, property damage, libel and slander or false advertising. 

Sports teams should also consider adding Event Liability Coverage if they host any type of events at their facilities or elsewhere, including games and special events, to guard against the liability associated with such events. Risks include damage to your property, and if alcohol is served, possible property damage, injury or even loss of life both during and following the event. 

Property Insurance covers the physical assets of the sports team and should be included in your Professional Sports Teams Insurance package. This coverage applies to damage caused by extreme weather events, fire, flooding, theft and vandalism. 

If your sports team is overseen by directors and officers, D&O Insurance is essential for protecting these individuals from lawsuits alleging negligent or improper acts. 

How Much Does it Cost? 

Professional Sports Teams Insurance can vary substantially based on the individual circumstances of a given team. Several factors play into the cost of coverage for a sports team, including the number of games and events held, if any physical assets are owned by the team, the number of players, the projected annual revenue of the team, whether the team has to travel to away games, and many more. ALIGNED Insurance brokers work with the best companies in the country to design tailored coverage at competitive prices.  

Does my Sports Team Insurance Include Coverage for International Tournaments? 

While your sports team insurance does not cover your team when travelling internationally, there are other options for seeking coverage for international travel that can be discussed with your ALIGNED broker. 

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