Insurance for Sports & Recreation Businesses

As people look for alternative ways to put the electronics down and be more active, local sports and recreation businesses are swiftly rising to meet the demand. Whether you’re the king of adrenaline, a favorite sports league, or provide a more subtle expression of fun, safety protocol is not just for your members. It includes practicing safe business through… you guessed it, insurance, known as Sports & Recreation Insurance.

What is Sports & Recreation Insurance?

This is a consolidated term used to address the risks of diverse businesses who specialize in improving health and lifestyle balance through physical activity and often, community. The idea is to help these organizations sustain their operations, equipment, staff, volunteers, and customers, should the unwanted unexpected occur.

For a list of specific industries, click here.

What are Your Core Industry Risks?

Each sport or recreation business holds its own detailed list of risks. For example, working with minors, hosting events, or high-adrenalin level activities can dramatically alter your risk profile. Broadly speaking, most sports, leisure, or recreation organizations share these risks:

Physical Injury: Anytime people are engaging in athletic movement on your property, there is a higher chance someone will experience an injury. Even if you take all necessary safety and legal precautions, a customer or staff injury can lead to a lawsuit or costly medical bills.

Conflict Management: If a customer, volunteer, or employee claims your organization caused harm from a bad decision, inappropriate behavior, or is to blame for lost rights or opportunities, this can lead to a costly wrongful action lawsuit.

Equipment & Assets: You most likely own some very niche (and expensive) equipment. Insurance could help you replace or repair stolen or damaged assets. Your operations and customer experience depend on it.

What Should Your Policy Include?
It’s critical your policy tells your business’ story. Please connect with one of our experts and refer to your policy for specific coverage details.

Property Coverages: Addresses the risk of damage or loss to physical business property at the hands of a covered peril, such as theft, fire, vandalism, fallen objects, and some weather events. If your business is grounded in a climate that faces unique weather-related risks (such as floodplains or hurricanes), you may need endorsements (extra coverage) to include these events. Unless a peril is specified in writing, you will not have coverage for that damaging event. Working with an advisor who invests time in learning your industry and environment can prevent costly coverage gaps.

• Building Coverage: Covers costly damage to the physical building (or field).
• Business Personal Property: Covers unattached assets are that are critical to the functioning of your organization like fences, office accessories, inventory, etc.
• Special Property: Covers unique and costly possessions like equipment, carnival machinery, etc. These are typically very costly and require expert policy writing and evaluation.
• Business Income Loss: A loss associated with a building or primary business equipment can bring business to a halt. This coverage reimburses the business for lost income for a specified amount of time (typically a year) while the claim is being processed, equipment is being purchased, or a building is being re-built.

Liability Coverages: Addresses bodily injury and property damage caused by your negligence.

• General Liability: In case someone gets injured on business property.
• Employment Practices Liability Insurance (EPLI): Covers employer liabilities such as discrimination, improper dismissal, or sexual assault of employees and volunteers.
• Professional Advice: Covers accusations of misinformation, bad decisions, and more.
• Special Events: Covers special events like camps, team celebrations, fundraising, etc.
• Travel: Covers commutes to and from games or events.
• Cyber: Protects costly database breaches that could lead to compromised information about your business and customers.
• Directors & Officers: Covers the decisions made by board members, officers, or trustees.
• Custody, Care & Control: Covers liability associated with personal property owned by others like locker items, personal equipment, gym bags, etc.
• Product: If you make and distribute goods on behalf of the business (retail shop, medicinal cream, baked goods, etc.), this covers the physical product in case it’s defective and leads to harm.
• Sexual Molestation: Responds to allegations of sexual abuse.

Auto Coverages: Addresses liabilities associated with damage to/by agency vehicle(s).

• Hired & Non-owned: Covers employees/volunteers who are driving on behalf of the business in their own/rented vehicles.
• Business-Owned Vehicles: Covers business-owned buses & vans.
• Inland Marine: Covers any type of equipment while in transit.

What to Look for in Your Carrier?
Your industry is not “general,” which means your policy should reflect its’ intricate nuances. We’re proud to partner with credible carriers who weave together solutions to your niche risks. This allows us to evaluate and treat your risk profile in one comprehensive policy, confident that it meets our non-negotiable high-quality standards.

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