For many clubs the word insurance conjures a grey area of understanding. There is often a misconception surrounding the costs involved and what insurance is actually needed. The worrying factor is that these assumptions lead to inaction and a burying of the head in the sand mentality from some office bearers that apply the theory – If you don’t understand it, just ignore it.
It is worth dispelling the mysteries surrounding insurance. Establishing what type of insurance cover a club needs. Why it is prudent and the risks involved for the club and its office bearers.
Good Public Liability policies provide clubs protection in the event that the club has to pay compensation to third parties for personal injury or personal damage.
Claims of negligence may arise due to loss, damage or use of property or the injury or death of an individual.
Good public liability policies will cover claims resulting from the negligence of club members, including voluntary workers who are engaged on behalf of the club.
Clubs ideally need Professional Indemnity insurance cover to protect any representative providing professional advice including coaches, trainers and medical staff. Professional Indemnity insurance indemnifies against claims where it is found that advice being provided by club representatives is negligent.
Directors and Officers Insurance
All incorporated clubs should consider Directors and Officers to protect club officer holders against claims which may arise from a failure to carry out the obligations and duties of the role. In some instances, these failures may result in claims against individual Directors and Officers of the club which may expose them to paying the claim personally if they do not have the protection of Directors and Officers Insurance.
Building and Contents
Building and Contents insurance protects the buildings and contents of your club from theft and damage. Consider policies that cover your clubs equipment away from the club facilities, i.e. when the equipment is taken to competitions at venues other than the home venue of the club.
Check to ensure your policy covers;
The protection offered by Accident insurance policies varies from policy to policy so it is important to understand the terms of each policy. The more inclusions in the policy, the more expensive the policy will be. It is important that accident insurance policies cover not only players and participants but also:
- Officers of the club
- Trainers and other support staff
- Club members
Accident Insurance policies will cover and make payments to some or all of the following occurrences:
- Permanent or temporary disability
- Loss of income
- Rehabilitation of sports injuries
- Repatriation of the injured competitor
It is very important that clubs understand the amount of covered offered by their accident protection policy. If it doesn’t cover 100% of an injured individual’s income, this must be made clear so additional income protection can be acquired.
Clubs or club members may wish to have additional income protection insurance coverage if the Accident Protection insurance cover does not offer the level of cover required by an individual.
Volunteer Staff Insurance
Volunteer staff insurance covers the individuals in your club that are helping out on the field of play and also in the club facilities. Officials suffering injury from ancillary activities or even those harmed in the kitchen facility helping to prepare meals, for example, will be covered for injury and loss of earnings.
- Prize Indemnity – Insurance policies can be taken out to cover the cost of providing major prizes in a game of chance such as golf ‘hole in one’, ‘half court’ basketball shots, football/soccer ‘super kicks’, perfect ten pin bowling scores, tagged fish and many more.
- Player Bonus –Insurance policies are available to cover the cost of a bonus which becomes payable on the athlete achieving a certain level. For example, winning the State, National or World Championship in a given event or sport.
- Adverse Weather – Insurance policies can be sought to protect your club from financial loss of an event as a result of adverse weather conditions such as a torrential downpour, drought, gale force winds, unsatisfactory water conditions or even a sudden temperature change.
- Cancellation/Abandonment – Insurance cover can be taken out to cover financial loss relating to an event being postponed, relocated or cancelled due to circumstances beyond the control of the club organisers.
- Non-appearance/Performance – Insurance cover can protect against financial loss arising from the non-appearance of a star performer or group at a specified event.