It is common for sportspersons to suffer from injuries. It is also common for the event organizers to suffer different damages. The treatments are costly and sometimes the losses cost a fortune. The sports and fitness insurance aims to cover all sports professionals, sports teams, and even the organizing agencies. Let us study it in detail and understand the various types of covers offered.
As per a recent survey conducted by StatsCan, around 35% of the injuries happen due to participating in sports or because of performing fitness exercises. Sports professionals usually suffer from physical as well as mental exertion and often see a doctor.
The medical costs are simply expensive, and they often search for insurance policies that can cover the different events. Besides this, it is also a possibility that someone else can suffer due to an act of their omission or negligence.
The insurance industry offers a solution to all such problems by offering a specialized liability package known as sports and fitness insurance. This article covers this kind of insurance policy in detail and guides you about the different types of covers offered.
Who Is Covered by Sports and Fitness Insurance?
Below is a list of professionals as well as events covered under this insurance policy:
- Sports Teams – Professional or Amateur
- Sports Leagues – Recreational or Private
- Sporting Events – Tournaments, Sports Camps, etc.
- Coaches, Managers, and other instructors
- Dance Instructors
- Martial Arts
- Yoga, etc.
What Are the Different Covers Offered?
A sports insurance policy is a packaged product, and you can select the different types of covers based on your need and suitability. The cover is subject to the limit of the sum insured. Usually, a comprehensive sports and fitness insurance policy will provide the following coverages:
|Name of the Coverage
|Commercial General Liability Insurance (CGL)
|It gives you financial protection and covers all the third-party injuries as well as property damagesSample Event:You are the owner of a sports complex.You organized an event in which a spectator fell from the stairs The CGL policy can cover all the medical and legal expenses
|Professional Liability Insurance
|This cover is specifically designed for coaches, physical instructors, trainers, etc. who are in the profession of giving advice and suggestionsIt covers all their acts of omission, negligence, errors, etc.Sample Event:You are a fitness trainer and were hired at a gymA gym participant suffered from an attack of asthma while running on the treadmillHis parents sued you and claimed that this happened due to your negligenceThis policy will cover your legal expenses and settlement expenses.
|Cyber Liability Insurance
|Cyber-attacks, leaks of financial information, and data breaches are quite common nowadays.This policy aims to cover all the expenses such as network repair, legal fees, and even extortion money. Sample Event:You are a player’s manager and store all their financial information on your laptopYour laptop got hacked and this led to a major data breachA few players sued you for your negligenceAll your settlement and legal expenses will be covered
|Directors and Officer’s Insurance (D&O) (also known as Management Liability Insurance)
|This policy provides financial protection to the directors and officers of a sporting organizationIt covers costs such as indemnification, legal expenses, losses, etc. which can happen due to:Wrongful dismissalsNegligence, omission, and errorsViolation of established rules and regulationsBreach of fiduciary duties
|Sports Equipment Insurance (also known as Contents Insurance)
|It is a type of property coverage and covers the cost of sporting equipment, which can be lost, damaged, vandalized, etc.Sample Event:A club team vandalizes the sporting kits of the opposition in a fit of rageThis policy can cover the cost of damaged equipment
What Is the Cost?
Like every other insurance policy, you will be required to pay a premium for the Sports and Fitness Insurance Policy. How much do you have to pay? – It entirely depends upon the covers opted for.
For example, on average a Sports and Fitness Insurance Policy for individuals that comprises Commercial General Liability and Professional Liability costs $280 per annum. The insurance limit is $2 million.
Similarly, sports facilities and organizing agencies will have to pay $350 per annum with all the above conditions remaining the same.
How Should An Establishment Choose The Best Policy Options?
As stated earlier, a Sports and Insurance Policy can provide you with five different types of coverage. However, you might not require all of them. The choice of what all covers you should avail of depends upon the following factors:
- What is the location of the sports facilities?
- What is the length of the league, tournament, event, or season?
- How long and intense are your training schedules?
- What is the level of experience of the participants?
- How prone are the participants to injuries?