JRunning a sports clinic, sporting club, sporting event or just a social sporting gathering will have a few inherent risks. There will be a need for financial protection similar to any other business. Running, cycling, playing a ball sport like basketball, football or golf, swimming, badminton, dancing are all physical by nature.
Although they are fun and fulfilling health goals and whether you are competing seriously or participating purely for the social aspect, sports can cause loss or damage. These are the four main areas to consider when purchasing sports-related insurance.
Public Liability
Just like any business, sports activities also carry specific risks when operating in public spaces, and sport by its own nature is a “physical” activity. Examples of these “contact” sports are mentioned earlier, and the more the participants in one playing surface, the larger the risk.
Keep in mind insurance companies will want to know specifics such as venue, number of participants, number of spectators and nature of the sport. These all contribute to the premium the insurance companies will apply.
Keep also in mind that conducting sports competitions on public/council premises will require the council’s permission. This includes something as simple as a yoga class. Most likely councils will request a Certificate of Currency before conducting the activities.
Professional Indemnity
This covers errors and omissions that could lead to a loss or damage. This is required specifically for gyms and personal trainers.
A personal trainer may not be in physical contact with a client. However, if a personal trainer says to a client, he/she can bench press 100kgs and the client is injured, the client may go back to the personal trainer for litigation because of the advice they have provided.
Participation Cover
This insurance cover is sometimes known as player-to-player cover. In contact sports, there will be levels of physical contact. Whether intentional like in rugby or football field, or accidental like in a golf ball hitting another golfer, injuries can occur.
A usual Public Liability Policy will not extend to player-to-player injury. Only a specific insurance policy can extend this cover. A broker will have access to these sports-specific policies.
Equipment Cover
Most insurance policies will not extend equipment whilst being used. A specific example is a $10,000 fibreglass racing bicycle. Most household policies will cover leisure bikes whilst in use. But the moment they are being used in competition, the policy will not extend. Losing a $10,000 bicycle during a race is an expensive loss.
A specified sports policy extending equipment whilst in use is something players don’t often think about because of the replacement value. But high-end value items are important to insure.
Making an informed decision on your Sports Club Insurance should not be considered as any other insurance. Having detailed information required to present to the insurance companies, and understanding the risk will assist any unfortunate losses on an activity designed to be fun.
