Archive for the ‘Equipment Insurance’ Category

Crime and Equipment Policies for Sports Organizations

The difference is important

Some administrators who make the insurance purchasing decisions for sports organizations are confused over the difference between Crime Insurance and Equipment Insurance.  They mistakenly believe that theft of equipment by outsiders or vandalism of equipment is a crime covered by a Crime Policy.  This is not correct.

Here is an easy way to distinguish between the two policies:

Equipment Insurance = Loss of sports equipment due to fire, wind, vandalism, theft, etc.

Crime Insurance = Employee/Volunteer theft of equipment or embezzlement of funds.

Of course, the above explanation is an over simplification, but it is an easy way to understand the main differences between the two policies.

Safety in the Gym

Risk management from top to bottom

Occasional injuries in a gymnasium or sports facility are to be expected, but they’re usually due to the inherent risk of sports participation. However, no one should ever expect an equipment-related injury.

Safety in the gymIn-depth equipment inspections should be conducted annually, and visual spot checks every month. Documentation of these inspections is an integral part risk management and can be the key to combatting allegations of negligence or noncompliance in the event of an injury claim. (I’ll add internal link here to our blog post about the popped exercise ball after it posts)

Don’t assume staff is knowledgeable enough to conduct these inspections. If necessary, hire a professional inspection service. Such services usually don’t perform repairs, but can refer you to a company that does. If performing your own in-house inspections, there are areas that can be easily overlooked.

Looking up

As every grocery store manager knows, people focus on what’s at eye level. Sports facilities often have wall-mounted and/or ceiling-mounted systems, such as basketball nets, storage systems, and lighting. Make it a priority to look up for frayed cables or broken pulleys and mounts. Staff, players and fans are susceptible to serious injuries from stretched cables, loose attachments, or improperly stored equipment.

“If you see something that might be a problem, you need to investigate.” – Nick Cusick, Bison Inc.

Are problems afoot?

The gym floor houses equipment that can poses risks as well. Volleyball nets and soccer goals should be inspected for proper anchoring. Unsecured equipment can fall on players or cause players to trip. Safety wall padding should be checked regularly to ensure none is loose and still in good shape, not torn or worn thin.

Proper and sufficient signage can’t be stressed enough. Not only does it draw attention to safety issues and rules, but is a significant part of any risk management program. In other words, signs protect the public from safety hazards and the gym owner/operator. from potential lawsuits

If you have questions or concerns about safety issues, contact Sadler Sports and Recreation Insurance at (800) 622-7370. And don’t forget to “like” us on Facebook!

Source: Emily Attwood, “Inspections, Monitoring Key to Optimal Gym Operation,“ Athletic Business. March, 2014.

 

 

Property And Sports Equipment Insurance

Unique risk exposures require Commercial Property insurance

Most of the major exposures for sports and recreation organizations involve lawsuits and liability. However, sports and recreation organizations do have some unique property and equipment exposures which require the purchase of Commercial Property insurance.

Sports and recreation organizations commonly own the following types of property that Property and equipment insuranceshould be covered under a properly customized and endorsed Commercial Property insurance policy:

  • Buildings, sheds, fences, bleachers, scoreboards, and other structures
  • Personal property such as furniture, fixtures, office equipment, supplies, and inventory
  • Tenant improvements and betterments
  • Computer hardware, software, and data
  • Sports equipment
  • Field maintenance equipment

Commonly covered perils include fire, windstorm, hail, theft, vandalism, auto collision, etc.

Whenever possible, the Special Perils of Loss coverage form should be used and all property should be insured for its full replacement value. Computer hardware and software should be insured under a special Electronic Data Processing (EDP) coverage form that insures against certain common perils that are excluded under the regular Commercial Policy coverage form. In addition, equipment that leaves the premises should be insured under an Inland Marine coverage form that covers equipment to other locations.

An organization should carefully review its Property insurance needs with a property and casualty insurance professional who specializes in business insurance. That agent should use a detailed checklist to make sure that all special coverage needs and exclusion buy-backs have been addressed.

Sports and recreation organizations commonly enter agreements where they lease buildings and personal property. These lease agreements should be carefully reviewed for insurance requirements. The tenant or lessee is commonly required to carry certain types of insurance to protect the interests of the landlord or lessor. An experienced property and casualty insurance agent should review all such agreements to advise the sports organization on contractual requirements pertaining to Property Insurance.

Business income and extra expense

Property Insurance covers direct damage to property from covered perils and pays for  repair or replacement. On the other hand, Business Income insurance pays for indirect damage to an organization’s finances.

For example, if an organization’s headquarters were to burn down, it’s possible the whole operation could be disrupted and the sports organization would suffer from loss of income and ongoing expenses during the period of restoration. Or, if the sports organization were to immediately relocate to a temporary location and immediately resume operations, Business Insurance would cover the cost of lease payments, rush delivery of phones and computers, information technology consulting fees for set up, etc.

Business Income and Extra Expense insurance were designed to reimburse  these types of losses. It’s been statistically proven that these policies significantly lower the possibility of business failure and bankruptcy. Due to the complexities of determining the proper limit of coverage to purchase and the various coverage options, it is imperative to consult with a property and casualty insurance agent who specializes in business insurance for a policy that meets your organization’s unique needs.

Please contact Sadler Sports & Recreation insurance if you are interested in receiving a quote.