Frequently Asked Questions About Small Business Insurance
Recreation And Sports Insurance FAQ. Sports and recreation includes a wide variety of operations, from individual theater owners to theater chains to corporations that operate properties with recreational facilities spread over many acres.
It also includes publicly and privately owned athletic fields, stadiums, golf courses and other athletic facilities. The risks in this classification are similar in that all involve the admission of large numbers of people combined with significant public access. These shared characteristics mean that all share the potential for catastrophic loss.
For this reason, liability coverage with high limits of liability is critical. Property, workers compensation, crime and inland marine coverages are also important but their necessity varies by type of risk.
We wanted to provide a deeper dive into small business insurance to help our readers get a better understand of the commercial insurance policies they want and need with the Recreation And Sports Insurance FAQ.
Read the Recreation And Sports Insurance FAQ to learn what type of commercial insurance coverages are right for your business - including liability, property, workers compensation and other specialty policies.
Sports are, "activites involving physical exertion and skill in which an individual or team competes against another or others for entertainment.."
Recreation is, "activity done for enjoyment when one is not working.."
Recreation And Sports include - but are not limited to - the following types of businesses:
You can reference the Insurance Definitions, Dictionary And Glossary to better understand the commercial insurance policy terms and language used in our Small Business Insurance FAQs.
Following are some suggested commercial policies and coverages applicable for sports and recreation businesses:
The commercial package policy combines two or more coverage parts. In this arrangement, premium discounts apply but only if property and liability coverages for the same location are provided. Combining coverages on a single policy may not be practical or possible for many operations. However, when possible, every effort should be made to combine as many coverages as possible for convenience, cost savings, and to prevent coverage gaps.
Types Of Recreation And Sports Package Policies:
Property values range from fairly minimal to hundreds of millions of dollars. Regardless of the values exposed, the exposures in these risks are significant, even in operations with low property values. Most operations will have regular normal periods of unoccupancy and many will be located in difficult-to-access areas.
Some types of business personal property that are more mobile in nature are better covered by inland marine floater forms. Time element coverages are important and both business income and extra expense coverage forms should be reviewed to determine which provides the best coverage for the particular operation.
Types Of Property Coverages:
Inland marine coverage forms should be compared with property coverage forms to see which is more appropriate for covering the business personal property of a particular recreational operation. The inland marine coverage form is often the preferred form because of the mobile nature of the property or because the property is stored or moved off site when the location is closed for a season.
Always remember to remove items covered by an Inland Marine form from the business personal property schedule to prevent duplicate coverage and duplicate premium.
Types Of Inland Marine Coverages:
Many of the risks in this category have enormous money exposures every day they operate. Because of this, losses involving money and securities are the single biggest concern for most recreational facilities. This includes not only holdups and robberies but incidents involving counterfeit currency, computer fraud and forgery as well.
Employee theft is also a major concern in some operations because of attractive types of property or merchandise coupled with high rates of employee turnover.
Types Of Crime Coverages:
Recreational operations of all kinds must obtain the appropriate licenses and permits to first begin and then to continue operations. In order to obtain and retain the licenses and permits, they must obtain the required surety bonds.
Types Of Surety Coverages:
Recreational facilities have a way of bringing susceptible groups of individuals and situations together that can be potentially dangerous if not properly monitored. The joy and happiness of the moment can quickly change because of a calamity and those calamities can then lead to lawsuits.
Types Of Liability Coverages:
Recreational facilities may employ medical professionals to provide immediate first aid or other medical attention in case of an accident, and security officers to assist in crowd control. Professional liability coverage is needed in these cases to protect the financial interests of the recreational facility due to mistakes, errors or omissions by these professionals in doing their jobs.
Types Of Errors And Omissions (E&O) Coverages:
Automobile exposures for these operations can range from little or none to very complex and involved. For example, some facilities include group transportation from hotels or airports to and from the recreational facility.
Transportation activities that occur within the facility premises may be covered by the commercial auto policy or by the general liability coverage, depending on the type of vehicle involved and the way it is licensed.
There may even be garagekeepers exposures if customers' vehicles are cared for or operated by the business while the customers are using the facility.
Types Of Business Auto Coverages:
Employees at recreational facilities may be involved in dangerous operations as they maintain and repair equipment and protect guests visiting the premises. In addition, seasonal employees and high rates of employee turnover lead to an inexperienced work force, which can cause higher accident rates. Workers compensation coverage will pay for the injuries.
Types Of Workers Comp Coverages:
Recreational facilities participants are as varied as the services offered by the facilities. Mixing individuals of varying abilities in large numbers with potentially dangerous activities should encourage any recreational facility owner to purchase high limits of liability through an excess or umbrella policy.
Types Of Excess Liability Coverages:
The owner of multiple recreational facilities may own or lease aircraft as a means to easily, comfortably and conveniently travel between locations.
Types Of Aviation Coverages:
Some recreational facilities have watercraft and related operations and exposures that can only be covered by an ocean marine, yacht or other similar policy.
Types Of Ocean Marine Coverages:
Because of the variety of operations, hazards and exposures at recreational facilities, other coverages may be needed from time to time to respond to them. Recreational operations are using drones in creative ways and, as technology improves, will be using them in even more ways. One or more of the following coverages may be needed to fill a particular coverage gap at a specific facility.
Types Of Specialty Coverages:
There are many commercial insurance policies available for Recreation And Sports. To find out what types of coverage your business needs, speak to a professional insurance broker with experience in insuring these business types.
Learn about the coverages available for specific industires with the Insurance FAQs below: