Risk Management Tips for Sports Organizations

IMPORTANT
CUSTOMIZATION – IT IS STRONGLY RECOMMENDED THAT EACH ORGANIZATION SHOULD CUSTOMIZE ITS OWN RISK MANAGEMENT PROGRAM TO MEET ITS OWN UNIQUE NEEDS.

DISCLAIMER – CAMBRIAN SPECIAL RISKS LIMITED DISCLAIMS ANY AND ALL LIABILITY RESULTING FROM THE IMPLEMENTATION OF ANY OF THESE RISK MANAGEMENT TIPS.

Typically, a sports organization should purchase four different insurance policies!

1. Accident Insurance
2. General Liability Insurance
3. Directors and Officers Liability
4. Crime Insurance

Let’s take a quick look at what they are:

1. ACCIDENT INSURANCE
Pays for medical bills on behalf of injured participants. This policy assures that your children and volunteers will receive the type of medical treatment that they deserve. Also, the threat of a lawsuit being filed by an injured player is minimized if the medical bills are taken care of by Accident Insurance.
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2. GENERAL LIABILITY INSURANCE
Covers certain types of lawsuits alleging that a spectator or player has suffered bodily injury or property damage due to the negligence of your organization. This policy provides legal defense and pays for costs of settlement. Covered persons should include the sports organization itself, directors, officers and volunteers. Lawsuits are filed everyday for injuries that occur at games/practices and during off premises non-sport activities. Even if you prove that you were not negligent, the legal fees must be paid.Those fees can easily run upwards of $10,000.
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3. DIRECTORS & OFFICERS LIABILITY
Covers certain types of lawsuits (not covered by the General Liability policy) alleging that your sports organization’s mismanagement has resulted in economic injuries to another party or that another party’s rights have been violated. Examples of types of lawsuits commonly covered include discrimination, wrongful termination or suspension of your league personnel or players, or failure to follow your own rules or bylaws. This policy also provides legal counsel for your defense and pays for costs of settlement. Covered persons should include the sports organization itself, directors, officers and volunteers. Again, even if you are totally innocent, the legal fees must be paid!
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4. CRIME INSURANCE
Covers a financial loss suffered by your sports organization as a result of embezzlement of money by your own volunteers. Also, this policy should cover theft of money by outsiders. It’s hard to think that your own volunteers would steal but it does happen. Who pays the bills if the money is gone?

Under some circumstances, some sports organizations may need additional policies such as Property and Auto.

***PROVINCIAL PLANS AND PRIVATE PLANS ARE ALWAYS PRIMARY***