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It’s essential that both the sport organisation and the individual have adequate insurance


Insuring against risk in sport


Insurance is an essential requirement when protecting individuals and organisations against potential risks – par- ticularly in this increasingly litigious age (and the recent riots). We ask industry experts what to consider to ensure the right cover for sports people, clubs and governing bod- ies, leisure trusts and the hosting of major sporting events


Chris Rackliffe, lead contingency underwriter, Beazley Group


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isks that organisers of major sporting events need to consid- er include cancellation due to


terrorism, adverse weather conditions or unforeseen circumstances, such as political unrest and civil commotion. Event organisers need to work


closely with their insurance broker and underwriters from as early in the plan- ning process as possible, to allow them to gather the key underwriting infor- mation. In addition, site visits can also be made to advise clients as to the steps they should take to lessen the risks of a cancellation. The next big decision the event organiser needs to make is


what level of cover is required. For example, does the full cost of running an event, including profits, need to be covered? And does the event timing allow for any rescheduling of key com- petitions due to unforeseen circumstances – as this may affect allotted televised coverage time, ticket sales and advertising revenue? If an event needs to be extended by an extra day – what would be the cost to the organiser to be able to do this? Collaborative discussions between clients and brokers


means that cover is tailored specifically for the event and en- ables more competitive pricing – based on the underwriter’s understanding of the risk.


32 Read Sports Management online sportsmanagement.co.uk/digital


Andrew Nixon, associate and sports lawyer, Thomas Eggar LLP


that the liability threshold is higher in sport than in other walks of life. However, the risks associated with personal injury still need to be man- aged – in particular when it comes to team contact sports. It’s fundamentally important that


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clubs have appropriate employer’s liability insurance in place to provide cover against any claims made against an employee who causes injury to an opposing player. Generally speaking, the clubs will be linked to any per- sonal injury claim on the basis of vicarious liability. Players also need to manage their individual risks. For exam-


ple, in football, clubs can lawfully terminate a playing contract, subject to obtaining medical opinions. Therefore, during con- tract negotiations, it’s important for the player to make it a contractual term that ‘notice to terminate’ cannot be invoked until – say – the last six months of the contract. This will ensure the contract is paid-up in full, effectively meaning the club is insuring the player against injury. If this cannot be agreed, then career-ending injury insurance should be obtained and the con- tract should contain a clause that the club pays the premiums.


Issue 3 2011 © cybertrek 2011


he concept of consent and the implied acceptance of cer- tain participator risks means


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