It is very important for every sports organization to carry sports insurance for its overall protection. Athletes engage in various kinds of activities, ranging from daily practices to games and tournaments, where accidents and injuries are a common occurrence. No matter what precautions are taken, injuries and accidents are bound to take place at some point of time where sports are concerned. This may result in lawsuits against the league or its participants; this is where sports insurance kicks in with its unique coverage.
How does sports insurance work?
A typical sports insurance policy protects an organization’s athletes, directors, coaches, volunteers against lawsuits that may arise from property damage and bodily injuries, some policies may even cover liability costs arising out of abuse or molestation. Sports insurance offers protection utilizing its 3 major aspects.
Sports insurance coverage:
A comprehensive coverage should protect you organization from liability costs arising from property damage, and injury related to operations, premises, products, advertising and participation.
Sports insurance offers coverage in the three ways as follows:
Accident insurance:
This coverage pays for the medical costs incurred by an accidental injury to a participant. This part of the coverage ensures that all participants and volunteers are covered for their medical bills, and get the best treatment required for their recovery. This also minimizes the chances of lawsuits filed against the organization by any enraged participant who might suffer an accidental injury. The average limits of an accidental medical costs reimbursement ranges from $25,000 to 100,000 per injured claimant.
General liability insurance:
Lawsuits can emerge out of any sports activity and even from off premises injuries. Lawsuits may be filed by an alleging visitor, spectator or a participant who may suffer property damage or personal injury owing to your organization’s negligence. You need to fight a case even if you have proof that your organization was not responsible for the damage. General liability coverage offers protection against civil claims and costs incurred from fighting defense cases, including attorney’s fees. All directors, volunteers and officers, including the organization itself should be covered to get proper benefits. It is important to remember that general liability coverage does not give any benefits without accident insurance coverage in place. So, you’ll need to buy accident insurance first for your general liability insurance coverage to work.
Directors and officers liability insurance:
This coverage protects against the costs incurred by lawsuits that general liability does not cover. It covers lawsuit allegation that the organization’s mismanagement has caused economic injury to another party or that the other person’s federal laws have been violated. Lawsuits that are generally covered under this section include discrimination, wrongful termination or suspension of an athlete, violation of your own rules and regulations. The sports organization, directors, officers and volunteers should all be covered under this section of sports insurance.
Benefits of sports liability insurance:
The other benefits of sports liability insurance policy are as follows:
• No deductibles for liability claims.
• Additional umbrella policies.
• Equipment coverage.
• Additional endorsements to suit your organization’s special needs.
Sports insurance is a must for any sports organization to protect itself against any economical loss due to the different hazards related to the general activity of sports. Thus, choose your coverage wisely to protect your sports organization and ensure its smooth operation.Blog Category