Professional Sports Insurance Policy Information
Professional Sports Insurance. Professional sports differ from amateur sports in that professional athletes are paid for their athletic skills and performance, while organizing their lives around rigorous professional training that keeps them in top form.
Professional and semi-professional sports clubs are usually members of a national or international association and participate within the structure and framework of the parent organization. An individual or group of individuals, a partnership, or a corporation may own each member club.
Sports facilities that (primarily) serve professional sports teams or athletes may range from swimming pools to ice-skating rinks, from race tracks to facilities for equestrian sports, and from ballparks to soccer fields.
While such facilities unquestionably promote public health as well as helping sports fans enjoy their favorite games, there is no doubt that professional sports facilities also face a multitude of risks.
Any one of the perils a professional sports facility may fall victim to could prove to be extremely costly, and that is why it is so important to carry out an in-depth evaluation of your insurance needs. What types of professional sports insurance coverage might be needed? Keep reading to learn more.
Professional sports insurance protects your organization and facilities from lawsuits with rates as low as $97/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked pro sports insurance questions:
- What Is Professional Sports Insurance?
- How Much Does Professional Sports Insurance Cost?
- Why Do Professional Sports Teams Need Insurance?
- What Type Of Insurance Do Professional Sports Need?
- What Does Professional Sports Teams Insurance Cover & Pay For?
What Is Professional Sports Insurance?
Professional sports insurance is a type of insurance that is designed to protect professional athletes, teams, and organizations from financial losses caused by injuries, accidents, and other unforeseen events. This type of insurance can cover a wide range of potential risks, including loss of income due to injury, medical expenses, and liability for accidents or injuries caused by the athlete or team.
Professional sports insurance typically includes coverage for both on-field and off-field injuries, including those that occur during training or practice sessions. This can include coverage for injuries sustained during games or competitions, as well as injuries that occur during travel or other off-field activities.
In addition to covering individual athletes, professional sports insurance can also provide coverage for teams and organizations. This can include coverage for losses caused by the cancellation or postponement of games or events, as well as liability coverage for accidents or injuries that occur on team or league property.
Professional sports insurance is typically purchased by athletes, teams, and organizations, but it can also be purchased by fans or other individuals who have an interest in protecting their investments in professional sports. This type of insurance can be customized to meet the specific needs of each individual or organization, and can be tailored to cover a wide range of potential risks and exposures.
Overall, professional sports insurance is an important tool for protecting the financial well-being of professional athletes, teams, and organizations, and can help ensure that they are able to continue to compete and perform at the highest levels.
How Much Does Professional Sports Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small pro or semi-pro sports organizatons ranges from $97 to $149 per month based on location, size, revenue, claims history and more.
Why Do Professional Sports Teams Need Insurance?
Professional sports teams need insurance to protect themselves from financial losses due to a variety of risks. These risks can include injuries to players, cancellations or postponements of games due to unforeseen events, and losses from liability claims.
Additionally, many leagues and governing bodies require teams to have certain types of insurance coverage, such as workers' compensation insurance for players. By purchasing professional sports insurance, teams can mitigate the potential financial impact of these risks and ensure that they have the resources to continue operating in the event of a loss.
It also provide protection for teams in case something happened to the stadium or any other properties of the teams. Overall, it help teams operate securely in terms of financials and make sure that the players, staff and facilities are covered from any unfortunate events.
In addition to protecting against financial losses, insurance can also help sports teams manage risk and comply with legal and regulatory requirements. For example, many sports teams carry liability insurance to protect against claims of negligence or other types of liability. This is especially important in professional sports where there is a high level of physical contact, and injuries can occur frequently.
Insurance can also provide teams with access to expertise and resources that can help them prepare for and manage risks. For example, insurance companies often provide risk management services to help teams identify and mitigate risks, as well as legal and claims support to help teams navigate the claims process.
Furthermore, Insurance also helps teams attract and retain top talent by providing benefits such as medical coverage and disability insurance for players. This can be especially important for teams that are competing for top athletes in a highly competitive market.
In summary, Professional sports teams need insurance to protect against financial losses, manage risk, and comply with legal and regulatory requirements. Additionally, insurance provides resources and expertise that can help teams prepare for and manage risks and also helps teams attract and retain top talent by providing benefits such as medical coverage and disability insurance for players.
What Type Of Insurance Do Professional Sports Need?
Each type of insurance protects business owners from a specified set of perils, covering costs up to a stipulated amount. professional sports facilities will not only vary greatly depending on the type of sport they are designed to host, but other factors also determine the exact nature of their insurance needs.
The jurisdiction in which your facility is based, your number of staff, the size of your operation, and the value of the equipment you own are merely examples. That is why it is vital to talk your insurance options through with a commercial insurance broker who is deeply familiar with the needs of athletic facilities.
Meanwhile, here is a look at some essential types of professional sports insurance coverage that are usually always needed:
- Commercial Property - Any business with physical assets needs commercial property insurance, as it covers their building and the assets inside in the event of perils such as theft, vandalism, acts of nature, and certain accidents.
- Commercial General Liability - This type of professional sports insurance coverage protects you from third party personal injury and property damage liability, as it helps you manage the costs arising from lawsuits. Attorney fees, court expenses, and settlement costs can all be covered.
- Athletic Participation - Athletic facilities should be aware of the fact that general liability policies exclude sports events. This type of coverage, which may also have slightly differing names, will ensure that you are fully protected. It will pay for costs relating not only to personal injury claims in an athletic context, but also, for instance, the costs that follows if an athletic team sues you after you have to cancel an event due to unforeseen circumstances.
- Workers' Compensation - Should one of your employees become injured at work, this form of coverage reimburses them for their medical bills. In addition, it covers wages they lose to related work absences. In the process, it protects you from litigation.
While these types of insurance all help protect your financial future even if your professional sports facility is confronted by a major peril, be aware that your business may require other kinds of coverage as well.
A commercial insurance broker can help guide you through the process of building a professional sports insurance comprehensive plan just right for your unique circumstances.
Pro Sport's Risks & Exposures
Premises liability exposure is high due to the large numbers of visitors on premises and the strong emotions that can arise between rival fans during sporting events. Public and life safety exposures are very important. Good housekeeping is critical to preventing trips, slips, and falls.
Any group tours must be staffed to adequately supervise participants. Escalators and elevators must be inspected regularly. Floor coverings must be in good condition. Adequate lighting, marked exits and egress are mandatory. Steps must have handrails, be well lit, marked, and in good repair. Parking areas should be maintained free of snow and ice.
Security at events, in the building, corridors, and parking areas need to be carefully reviewed. Disaster plans, including terrorist attacks, must be in place and practice drills held with employees. The event and practice facilities may present an attractive nuisance hazard when not in use.
There must be adequate security to prevent unauthorized entry to children, vandals, or would-be terrorists. Personal injury losses may occur due to alleged wrongful removal, invasion of privacy, or discrimination. Contracts with suppliers, vendors, event planners, and performers must be clear as to all responsibilities.
Liquor liability exposure can be quite extensive at a sporting event if employees are not properly trained to recognize the effects of excessive alcohol consumption. Procedures must be in place for checking IDs and refusing to serve underage or intoxicated individuals. There should be a "cut-off" time well before the end of the game to prevent visitors from excessive alcohol consumption prior to driving home.
Products liability exposures can be high if the sports club operates the restaurants or snack bars. Employees should be trained in the proper handling of consumables to prevent foreign objects in food, food poisoning, or the spread of other transmissible diseases. Other product liability exposures can arise from gift shops. If these are contracted out, the club should verify that the operators have adequate liability coverage.
Professional liability exposure comes from any medical doctor or nurse who is part of the staff. The relationship and responsibility for providing insurance must be spelled out in a contract, including the type of procedures that can be handled by the medical professional.
Workers compensation exposure can be very high. Employees who set up, build, or transport stage settings, equipment, lighting, and scenery may be injured by cuts, puncture wounds, electrical shocks and burns, slips and falls, back injury, hernias, strains, or sprains from lifting or working from awkward positions.
Stage and lighting setup may involve aboveground exposures that need additional protection and precautions to avoid falling from heights or being hit by falling objects.
Hawkers, peddlers, and vendors employed by the event facility to sell wares in the stands have high potential to slips and falls from limited visibility as they ascend and descend steps carrying items to sell. Ongoing exposure to noise levels can result in hearing impairment.
Food preparation operations can result in cuts, scrapes, and burns. Cleaning and maintenance operations can result in lung, eye or skin irritations, and reactions.
Adequate security and training must be provided to employees handling money in ticket booths, gift shops, and concession stands to reduce the possibility of injury due to holdups. Security personnel must be trained to deal with both holdups and unruly patrons.
Highly-paid athletes may be injured during training, while traveling to away events, or while competing with other clubs. Their contracts should state whether they are employees of the club or independent contractors.
Instructors, coaches, trainers, and others in related positions may experience sports-type injuries. The legal status of those positions needs careful review to evaluate the actual potential for loss.
Employees may have significant travel-related exposures. The type of travel, frequency, and mode of transit require review. Any owned vehicles or aircraft will result in substantial additional exposures.
Property exposure consists of buildings or personal property owned by the club or for which it has assumed responsibility. Most sports facilities have extensive wiring for lighting, sound systems, and other electronic equipment.
Event sponsors and performers will often bring their own equipment that must be fitted into the electrical system provided by the facility owner.
It must be in good repair, adequate for the equipment used, and meet all current building standards. Circuit breakers and/or fuses must be well maintained with no overrides.
Stage preparations such as building, painting, or gluing of scenery and displays that use wood, plastic, or flammables will contribute to the fire load. Some performers incorporate smoke or fireworks into their shows. These materials must be properly controlled, with all flammables stored in approved containers and cabinets.
If food preparation is done on premises, all cooking equipment must be properly controlled. Smoking should be prohibited throughout the facility. There should be hard-wired smoke detectors throughout the facility.
A sprinkler system is advisable. Domed roofs may collapse due to heavy wind or snow. Training facilities may be located on separate premises. Sports facilities may be a target for vandalism. Business income loss and extra expenses may be high after a loss if backup facilities are not available.
Equipment breakdown exposure may be high due to the heating and air conditioning systems, cooking equipment, hot water systems, electrical control panels, and lighting and sound equipment used for special events. Breakdown and loss of use could result in a significant loss, both direct and under time element, if replacements parts are unavailable or repair time is lengthy.
Crime exposure is from employee dishonesty and money and securities. Employee dishonesty coverage should be extended to include volunteers. Background checks should be conducted on all employees and volunteers handling money. Employees who are in charge of ordering must not be the same who handle disbursements and billings. Frequent inventories and audits must be conducted for adequate monitoring.
If tickets are sold at events, a significant amount of cash may accumulate. Cashiers' drawers should be kept stripped with regular deposits made throughout the day. There should be a centrally located locked cash room with a guard on hand to protect the employees and money.
All monies should be double counted and balanced with cashier balance sheets. All cashiers must be held accountable for shortages.
Inland marine exposures include accounts receivable if the club bills for services, bailees customers, commercial articles, computers, and valuable papers and records for contracts with suppliers and vendors. Values can be high with the wide variety of equipment for sports, sound, lighting, scenery, and displays.
Owned equipment taken off premises can be damaged in transit or stolen. Duplicates of records should be made and stored off-site for easy restoration. Contracts should be reviewed to determine if bailment situations are created with the athletes, speakers, performers, and guests.
Commercial auto exposure can be high since athletes must be moved from one location to another for sporting events. If there are owned vehicles, all drivers must be properly licensed and have acceptable MVRs. Team buses and other owned vehicles must be maintained on a regular basis with service records retained.
What Does Professional Sports Teams Insurance Cover & Pay For?
Professional sports teams may face lawsuits for a variety of reasons, including player injuries, discrimination, and contractual disputes. Here are a few examples of such lawsuits and how insurance can protect the teams:
Player Injuries: If a player is injured during a game or practice, they may sue the team for negligence or breach of contract. In this case, the team's insurance policy, specifically a workers' compensation policy, may cover the cost of medical expenses, lost wages, and any settlement or judgment against the team.
Discrimination: Professional sports teams can also be sued for discrimination based on race, gender, religion, or sexual orientation. In this case, the team's liability insurance policy may provide coverage for legal defense costs, settlements, and judgments.
Contractual Disputes: Professional sports teams may face lawsuits related to contractual disputes with players, coaches, or other personnel. In this case, the team's errors and omissions insurance policy, also known as professional liability insurance, may provide coverage for legal defense costs, settlements, and judgments.
Stadium Accidents: If a spectator is injured at a game or event, they may sue the team for negligence. In this case, the team's general liability insurance policy may provide coverage for legal defense costs, settlements, and judgments.
Overall, insurance can protect professional sports teams by providing coverage for legal defense costs, settlements, and judgments related to various types of lawsuits. It is important for teams to have comprehensive insurance coverage to protect themselves from potential financial losses resulting from lawsuits.
Commercial Insurance And Business Industry Classification
- SIC CODE: 7941 Professional Sports Clubs and Promoters
- NAICS CODE: 711211 Sports Teams and Clubs
- Suggested Workers Compensation Code(s): 9178 Athletic Sports or Park: Noncontact Sports, 9179 Athletic Sports or Park: Contact Sports
Description for 7941: Professional Sports Clubs And Promoters
Division I: Services | Major Group 79: Amusement And Recreation Services | Industry Group 794: Commercial Sports
7941 Professional Sports Clubs And Promoters: Establishments primarily engaged in operating and promoting professional and semiprofessional athletic clubs; promoting athletic events, including amateur; and managing individual professional athletes. Stadiums and athletic fields are included only if the operator is actually engaged in the promotion of athletic events. Establishments primarily engaged in operating stadiums and athletic fields are classified in Real Estate, Industry Group 651. Amateur sports and athletic clubs are classified in Industry Group 799.
- Arenas, boxing and wrestling (sports promotional): professional
- Athletic field operation (sports promotion)
- Baseball club, professional or semi-professional
- Basketball club, professional or semi-professional
- Football club, professional or semi-professional
- Ice hockey clubs, professional or semi-professional
- Managers of individual professional athletes
- Professional or semiprofessional sports clubs
- Promoters, sports events
- Soccer clubs, professional or semi-professional
- Sports field operation (sports promotion)
- Sports promotion: baseball, football, boxing, etc.
- Stadiums (sports promotion)
Professional Sports Insurance - The Bottom Line
To discover the specific types of professional sports insurance policies you'll need, what coverage you should carry and the associated costs, speak with a reputable commercial insurance agent.
Additional Resources For Sports & Fitness Insurance
Learn about small business sports & fitness insurance policies and what they cover so that your customers, employees, and equipment are protected.
- Golf Course & Country Club
- Gym Fitness
- Hole-In-One Insurance
- Ice Skating Rinks
- Martial Arts
- Professional Sports
- Sports Team
- Swim Clubs
- Yoga Teacher
- Specialty Sports And Hobbies
The sports and fitness industry is a high-risk industry that requires insurance to protect businesses and individuals from unexpected accidents and injuries. This is especially important for businesses that offer physical activities or equipment, as they are more likely to face lawsuits if a customer is injured while participating in their services.
Additionally, the sports and fitness industry often involves high-value equipment and facilities that need to be protected from damages caused by natural disasters, vandalism, or theft. Commercial insurance can provide coverage for these types of losses, ensuring that businesses are able to continue operating and providing services to their customers.
Business insurance also plays a critical role in protecting the personal health and safety of those participating in sports and fitness activities. Accidents and injuries can occur at any time, and having the right insurance coverage can provide financial protection for medical expenses, lost wages, and other related costs.
Overall, the sports and fitness industry needs insurance to safeguard businesses and individuals from the risks and challenges that come with providing physical activities and equipment. Without insurance, the industry would be vulnerable to significant financial and legal losses, which could ultimately harm its ability to thrive and grow.
Minimum recommended small business insurance coverage: Building, Business Personal Property, Business Income and Extra Expense, Employee Dishonesty, Money and Securities, Accounts Receivable, Bailees, Computers, Contractors' Equipment, Golf Carts, Valuable Papers and Records, General Liability, Employee Benefits, Environmental Impairment, Umbrella, Hired and Non-owned Auto & Workers Compensation.
Other commercial insurance policies to consider: Earthquake, Equipment Breakdown, Flood, Mobile Equipment, Cyber Liability, Employment-related Practices, Liquor Liability, Business Automobile Liability and Physical Damage, Garagekeepers, Stop Gap Liability and Unmanned Aerial Vehicles (UAV) (Drones).