Hosting a Company Ball Game? Get Sporting Event Insurance

Your company will need sporting event insurance in case there are problems during an event. Sporting events are meant to be fun and are often used for team building or to boost morale. However, there may be brawls between game players, or someone might get injured. Those who are injured can sue for liability or other legal issues. If you don’t have insurance coverage, you could be facing hundreds of thousands of dollars in damages.

What it Is

Sporting event insurance is third party liability insurance. It protects company staff, the event organizer and others involved in the event. Courts expect the companies hosting such events to exercise their duty of care to ensure the safety of participants, and if that duty is breached, then the company often pays for damages. When a company buys sporting event insurance, they are paying for legal representation, as well as payment for damages up to the coverage amount. It even covers claims resulting from event cancellation due to the weather. Some insurance covers various types of sporting events, such as:

  • Soccer Tournaments
  • Golf Events
  • Softball Games
  • Volleyball Events

It’s important to inquire whether the type of sporting event your company plans to host is covered by the insurance company you want to do business with.

What it Covers

The policy coverage of the various products widely differs. Some policies are so basic that it may not be worth buying, given the risk of liability. The company is better off buying  a more comprehensive policy that covers:

  • Property damage
  • Death or injury of participants
  • Liability or property damage claims related to games or practice
  • Use of athletic fields or other practice area 

Any sports event insurance you’re considering should at least cover these main aspects, or you can suffer tremendous losses in legal fees.

How to Get It

Buying insurance for a sporting event is much like buying any other type of insurance. You will be required to complete an application, get approved and then you’ll be covered. Some insurance companies specialize in this type of insurance, while other insurance companies offer it as a liability insurance products. The main factor in deciding which company to choose should be the financial rating of the company, the policy terms offered and the insurance company’s record for paying out claims.

There is no point in buying great coverage when there’s little chance that you’ll actually get paid if you file a claim. One way to determine that is to review the insurance loss ratio of the company. If it’s high, then claims are being paid to those that are insured. If it’s low, then the company is not paying their clients large amounts when they file claims. You can usually find the information on the company website. If not, you can ask your insurance representative. You can also divide the total claims in a year by the total premiums paid to figure out the ratio yourself.  

The bottom line is that it’s risky business to organize a company game and not buy sporting event insurance. If something goes wrong, the game can end up being a nightmare.

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