Archive for the ‘Event Insurance’ Category

Sports / Event Insurance for Terrorism, Active Shooter, and Civil Unrest

Las Vegas incident could be tipping point for revamped insurance and risk management

Ever-increasing threats involving terrorism, active shooters, civil unrest and other malicious acts bring to light the need for new, more comprehensive insurance coverage forms. They also prove the need for pre-event and post-event risk management.

As a result of the Las Vegas incident, gone are the days when sports / event administrators can just hope for the best. Sports and recreation events with large numbers of participants / spectators in public settings are ripe targets for malicious actors. As a result, these organizations must start to purchase appropriate insurance and follow risk management best practices when addressing these threats.

The rise in incidents

Active shooter is the most recent peril to gain widespread media attention. This is due to its increasing frequency, ease of planning / execution, and difficulty in prevention. The Department of Homeland Security’s (DHS) definition of an active shooter is “…an individual actively engaged in killing or attempting to kill people in a confined and populated area; in Terrorism insurancemost cases, active shooters use firearms(s) and there is no pattern or method to their selection of victims.”

According to the Advanced Law Enforcement Rapid Response Training Center, active shooter events increased from 5.2 per year from 2000 to 2008 to 15.8 events per year from 2009-2012. The figure rose to an average of 20 incidents per year in 2014 and 2015, according to the FBI. Most of these events occurred on business, school, and government properties. However, the Las Vegas incident introduced sports and recreation venues as high-profile target areas.

Mass violence and civil unrest perils represent the potential for many types of losses to sports and recreation organizations

  • Liability for failure to have a risk management plan, failure to respond, inadequate on-site security, inadequate on-site medical personnel, fencing too high to escape, etc. resulting in bodily injury to participants, spectators, employees, independent contractors, vendors, and other members of the public. The potential for damages are astronomical due to the large number of people at risk.
  • Property damage to premises and clean-up expenses. Property damage may result from bullet holes, bomb blasts, fire, vandalism, and contamination. Clean up may include removal of bodies, blood, debris, and contaminants.
  • Public relations expenses and post-event counseling expenses due to emotional and psychological duress.
  • Loss of income from the event and future events, both at the same location and all locations.
  • Loss of reputation resulting in lost future revenues.

Meet the mass violence and disruption perils

Standard terrorism: Traditional terrorist attacks are large scale and highly coordinated. They typically target global corporations, buildings, transportation systems, and other infrastructure with bomb blasts. A new type of ISIS-inspired terrorism emerged in recent years with smaller, lone-wolf type attacks. These include the use of trucks to run through crowds and small arms and knife attacks. Terrorists attempt to intimidate, coerce, or harm a civilian population or government.

Chemical, biological, radioactive terrorism: Terrorists can cause catastrophic loss of life, property damage, and financial loss from chemical, biological, and dirty bomb terrorism. Even the mere threat of these types of terrorism incidents can cause massive losses due to closures, evacuations, and postponements while the threat is being investigated.

Cyber terrorism: Terrorists may employ cyber attacks on a government’s infrastructure, industrial controls, banking system, hospitals, etc., resulting in property damage and business interruption.

Active shooter: Active shooters are typically single assailants who attack large groups in confined spaces. They have no connection to their victims and are not motivated by terrorist causes.

Civil unrest: A disruption in the social order involving a group of people engaging in protests, riots, and strikes, which may result in violence, property damage, and loss of revenue.

Impairment of access: Acts or mere threats of violence can prevent employees or customers from accessing work sites, resulting in financial loss. Impairment may result from terrorism, civil unrest, strike, or government cordon at either the employer’s location, adjacent locations, or within a certain mile radius.

What insurance coverages are required to protect against mass violence and disruptions?

The types of common insurance policies that can come into play after a mass violence or disruption incident are Workers’ Compensation, General Liability, Excess Liability, Property (direct damage and loss of business income), Cyber Risk, Event Cancellation, and Active Shooter insurance.

Workers’ Compensation and Employer’s Liability

Workers’ Compensation responds to job-related injuries to employees or uninsured subcontractors. It covers medical bills, lost wages, and lump-sum awards for disabilities, disfigurements and death benefits. Uninjured employees who witness a malicious act event may qualify for benefits due to post traumatic stress disorder (PTSD). Workers’ Compensation is typically the exclusive remedy for an injured worker.  But some scenarios may arise where employers can be sued directly for failure to respond to specific threat warnings prior to an event. There is no terrorism exclusion under a Workers’ Comp policy.

General Liability

The standard General Liability policy form carried by most sports and recreation organizations will likely respond to most claims alleging failure of the organization to prevent or adequately respond to an incident resulting in Property damagebodily injury or property damage. Note that the policy’s each-occurrence and/or aggregate limit may not be adequate to pay the types of extreme damages that may result when multiple individuals are killed or seriously injured.

General Liability policies may contain an exclusion for certified acts of terrorism as defined by the Terrorism Risk Insurance Act (TRIA) unless the buyback has been selected with the additional premium paid. Opting for the buyback, which is relatively inexpensive, is strongly recommended. To be a certified act of terrorism under TRIA, all property & casualty insurance losses must exceed $5 million and an effort made to coerce a civilian population of the U.S. or influence the conduct of the U.S. government.

Excess Liability / Umbrella 

Excess Liability insurance extends the liability limits of the underlying General Liability policy in increments of $1 million, depending on the policy limits purchased. The same coverage considerations that apply to General Liability also apply to Excess Liability. Excess Liability policies may contain the TRIA exclusion for certified acts of terrorism. In addition, some carriers may apply an additional exclusion for non-certified acts of terrorism. This could eliminate coverage for smaller scale terrorist events and active shooter situations. Sports organizations should strongly consider opting for the buyback from certified acts of terrorism under TRIA. They should also consider negotiating with their carrier to remove any exclusion for non-certified acts of terrorism.

Property and Business Interruption

Property insurance policies may pay for Interruption of Businessdirect damage to buildings and contents from a covered malicious act attack. They may also cover indirect damage, which includes loss of business income and extra expense.

Coverage for business interruption is only triggered if there is a direct physical damage loss under the policy. Organizations should also consider a business income buyback for losses stemming from actions by a civil authority to prevent or limit access. This commonly occurs after a malicious act as the location will be considered a crime scene. Business interruption insurance is a complicated coverage. As a result, if a loss occurs, organizations should hire an expert to assist with the filing of a claim to maximize recovery.

Certified acts of terrorism under TRIA can be covered if the buyback is selected and the additional premium paid. However, even with TRIA, the standard war exclusion will not be removed and additional exclusions may exist for nuclear, biological, chemical, and radiological (NBCR), depending on the state.

Cyber Risk

Cyber extortionists can shut down computer systems with denial-of-Ransomware attackservice attacks and other cyber-extortion schemes. Terrorists can hack into systems causing direct damage to equipment, software programs, and data. Cyber Risk policies can pay for the following direct damages to the policyholder: extortion or ransom costs; restoration costs of lost data, information, and programming; and business interruption and extra expense resulting from failure of computer systems.

Cyber Risk policies can also pay for liability costs resulting from hacking, breach of confidential data and related credit monitoring costs.  

Event Cancellation Insurance and Enhancements

Due to the limitations of standard property & casualty insurance policies, we advise sports organizations hosting events purchase Event Cancellation insurance with appropriate coverage enhancements.

Traditional Event Cancellation policies may cover loss of business income due to adverse weather; venue unavailability from perils such as fire, collapse, gas leaks, and flood; wildfires, earthquakes; loss or power or communications; communicable disease; non-appearance of key speaker or entertainer; and national mourning.

Additional endorsements may be available to cover loss of business income due to terrorism; sabotage; active shooter, chemical, biological, radioactive or nuclear (CBNR) terrorism; war, civil war, and political subversion; strikes, riots, and civil commotion; political intimidating; and national mourning. Some carriers may extend coverage to mere threat of many of these perils.

Active Shooter Insurance

New specialty forms have emerged for stand-alone Active Shooter Insurance. If this coverage can’t be endorsed onto an Event Cancellation Policy for loss of revenues, sports / event administrators should consider an Active Shooter policy. Also, Active Active Shooter InsuranceShooter policies offer a liability limit. The most common coverages and benefits are as follows:

  • Primary Liability with limits ranging from $500,000 to $25,000,000 to cover allegations of negligence from harm caused by attacks using deadly weapons. Even if existing General Liability and Excess Liability policies respond to these allegations, such limits may not be high enough to cover potential damages in an active shooter situation. As a result, a high-limit Active Shooter policy may be a more cost effective way to increase protection.
  • Pre-event services, such as security vulnerability assessment, preparedness seminars, and training modules.
  • Post-event services, including crisis management, advising on emergency communications, emergency call center, and counseling.

Pre-event risk management training for active shooter

Pre-event risk management for active shooter situations is becoming commonplace in educational, business, and governmental settings. Training staff on how to exit, resist, or fight can buy time for law enforcement to arrive.

One respected source of training is the ALICE Training Institute, which focuses its online training module on the following:

Alert: Recognizing danger, first notification to those at risk and law enforcement

Lockdown: Secure in place if unable to evacuate or prepare to evacuate or counter

Inform: Notify law enforcement or others at risk in real time if possible

Counter: Interrupt intruder plans and objectives

Evacuate: Move from danger when safe to do so

ALICE provides client-specific training with a plan geared towards particular locations. In the context of sports and event incidents, the two preferred techniques are usually alert and evacuation.

How to get a quote for Event Cancellation and Active Shooter

For more information on Event Cancellation and Active Shooter insurance and risk management please complete our Contact Us form or call 800-622-7370 and ask for our sports department.

 

Managing Risk in Parking Lots During Sports Events

Aim for an injury-free zone

Sporting events are controlled competition among rivals, and that gets people excited. For as long as people have been running races, throwing balls, and riding horses, crowds have gathered to cheer on the competitors.

When emotions run high, that excitement can continue after the competition is over, and not always with good results.  All too often, the parking lots associated with sporting events can become an arena for fights, assaults and other dangerous behavior. Parking lots are where more than 7 percent of violent attacks at sporting and other large crowd events take place, according to the Bureau of Justice Statistics.

Anything can happen

Tailgating and fierce rivalries can lead to confrontations, intentional or not. Whenever alcohol is present, so is the potential for a something to go wrong. For example, a fan suffered a broken leg following a college football game when a drunk patron knocked her down as she walked to her vehicle. She sued the school because no securitSporting event parking lot liabilityy or parking lots attendants were present when the incident took place. Taking the fact that the school sold alcohol at the event and therefore knew the potential for intoxication and the risks involved to attendees, the court ruled in the student’s favor.

The facility’s responsibility

Facility owners/managers should take proactive steps to reduce the potential for bodily injury and property damage in parking lots that can result from tailgating, accidents, fights, assaults, vandalism, etc. Anytime a large crowd includes excited, upset, and possibly intoxicated people, tempers can flare. Add to the mix rain, heat, and/or a long wait to get out of the parking lot, and trouble can easily erupt.

Below are risk management strategies to reduce parking lot risks.

  1.  Document everything. It’s easier to defend your facility if it has written training manuals, documented safety checks, a log of issues/resolutions and video or still images of recorded incidents.
  2. Maintain appropriate lighting, checking bulbs annually.
  3. Remove shrubs and keep large trashcans and other large objects from obstructing a full view of the parking lot.
  4. Have sufficient parking lot staff to visually monitor and conduct periodic walking checks of all areas.
  5. Train parking lot staff to address violations, establish a presence by interacting with fans, and intervene immediately when disturbances take place.
  6. Install high-resolution security cameras.
  7. Meet prior to the event with security officials, law enforcement and facility management to discuss potential issues and debrief following the event.
  8. Ensure that parking lot staff members are all on the same page about who has authority, the chain of command, and proper communication channels and procedures.
  9. Inform fans of safety procedures using signs, the public address system, and fliers.

A facility won’t be liable for unanticipated third-party criminal acts. But if an incident does take place, the facility has a duty to take precautions against future occurrences.  Not doing so can mean significant liability.


Source: Gil Fried. “How Safe are Parking Facilities Near Sporting Events?”rel=nofollowFrom Gym to Jury. Vol. 26. No. 4.

Sadler Featured in Sports Trade Magazine

The January/February 2017 issue of Sports Destination Management’s bimonthly magazine features John Sadler’s article, “Insurance Basics: What You Need to Know.”  SDM is a trade magazine for sports event managers and organizers.

In the article, Sadler explains why it’s important to address insurance needs while planning tournaments and other sporting events. In his over 25 years in the sports insurance industry, Sadler has seen many tournament hosts rely almost entirely on their own sports insurance for protection. Too many of these hosts are unknowledgeable about or neglect the importance of contractual transfer, which is transferring the risk of loss and/or the responsibility to pay for loss to the other party in the contract.

Sadler points out, however, that contractual transfer doesn’t replace tournament hosts’ needs for their own insurance and lists the reasons why.

The article also discusses at length the most common contractual transfer tools, such as liability waivers/releases and indemnification/hold harmless provisions.

Also covered in the article are insurance requirements for teams participating in tournaments and the importance of specifying the areas of responsibility for both the tournament host and the participating team in terms of operational control. Sadler stresses that a well-drafted provision in the tournament host agreement can be helpful to clarify which party has operational control and resulting liability.

Special Events May Require Special Coverage

Safety should be priority No. 1

Many for profit and not for profit organizations hold special events throughout the year. These can be tournaments, banquets, marathons, fundraisers, award ceremonies or simply family days that include fun activities and entertainment. A lot of planning and organization are required to ensure these events are successful. One element of the planning stage that should never be overlooked is determining whether your insurance program includes the coverage needed for a safe event for everyone involved – hosts, participants, volunteers, vendors and guests.

There are risks involved in hosting and managing special events that may require either added short-term or annual coverage. Beyond checking with your agent as to whether your event is adequately protected, below is a list of areas that require particular attention during the planning stages.

Vendors

Vendors can include caterers, tent and equipment rentals, concessions, security, and parking attendants. It’s important to research your vendors well because poor service or a mishap on their part can spoil an entire event – think of the potential consequences of a collapsed tent or food poisoning. It’s critical that each of your vendors provide you with a valid certificate of insurance evidencing General Liability with a limit of at least $1 million each occurrence and that they can add your organization as an additional insured on their policy.

Venues

It’s not unheard of for the actual venue of an event to be a factor that causes an accident or injury claim. Stages can collapse, fire exits get blocked, and severe weather can trigger the need for fast evacuations. The more knowledge you have about the number of people attending the event, the electrical equipment needed, and potential for severe weather, the better prepared you will be. For indoor events, make sure you know the emergency protocols of the building, which includes knowing where all the fire extinguishers, exits and stairwells are located. For outdoor events, be sure the terrain and any light/sound rigging are properly installed. Monitor the weather in the days leading up to the event as well as during the event – storms can pop up unexpectedly with disastrous results. There are weather apps for smartphone that can alert you to severe weather watches and warnings.

Emergency Planning

Every event should have a unique emergency plan which all staff and volunteers receive and sign that they have read it. The emergency plan should include who has the authority to shut the event down or ask a vendor to vacate. Sudden storms, a shooter in the area, or a vendor with a lapsed permit are only a few examples of when someone may need to make an on-the-spot decision.  The emergency plan should also include a protocol for announcing a closing or changes in the event programming. It goes without saying that all event staff and volunteers should be familiar with the event emergency plan, to include medical emergencies, lost children, crime and severe weather.

Security

Security often is something that tends to get “overlooked” because it doesn’t generate income. However, security should be considered an investment that reduces your risk of liability, which is just as good or even better than income. Below are some security tips that can make for a much safer event for everyone involved.

  • Volunteers are a great resource, but don’t use them for security enforcement purposes, such as dealing with unruly people, enforcing parking or alcohol regulations, or providing first aid. It’s best to have trained medical and law enforcement professionals handling these duties.
  • Using teachers, senior/varsity athletes and other community leaders is also not a good idea when it comes to maintaining order in the crowd. These temporary-authority figures aren’t always respected by others when they’re out of their element.
  • If you pay for professional security, don’t scrimp. Going with the cheapest security service may not be your wisest decision. Are their employees simply hired staff or trained personnel? Ask what types of sports events and what size crowds can they handle. Ask for examples of situations they managed to control and get references.

Sadler offers Special Event insurance and one of our insurance experts would be happy to help you determine what coverage your event needs. Call us today at (800) 622-7370 or simply request a quick special event insurance quote online now.

Food Safety in Concessions (Infographic)

Are you cooking up trouble?

Ants, bees, flies, rain, or wind can be annoying when enjoying a hot dog and soda at the ballpark. However, all of those pale in comparison to food poisoning, another outdoor food risk!

Indoor and outdoor sports organizations face liability risks from food poisoning incidents resulting from improper food handling at concession stands. These incidents should be covered by General Liability insurance. However, preventing such risks is preferable. Here are some tips for reducing the risk.

Management and purchases

• Concession stands must adhere to all local food licensing and permit laws and regulations.

• All concession workers should receive training in proper food handling by management.

• Only purchase food from reputable, good-quality sources.

• Do not purchase or serve any food past the expiration date.

• Avoid serving food prepared at home, other than baked goods.

Food Safety

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Food Handlers

• All concession workers must wash hands with soap and warm water after potential contamination events. These include but are not limited to using the restroom, sneezing or coughing,  touching counters and garbage cans, dumping garbage, touching cash register and money, and touching your face, mouth or hair

• Use of gloves and hand sanitizers offer hand additional protection, but are not a substitute for frequent hand washings.

• Food handlers be symptom-free of illness (coughing, sneezing or sniffling, fever, nausea, vomiting, diarrhea) or open wounds when handling food.

• Food handlers must use appropriate utensils, gloves, or deli paper when handling food.

Insects and Vermin

• Store all food off the floor.

• All food should be covered and spills/drips continually wiped down to discourage insects.

• Keep trash cans covered at all times?? with tight-fitting lids.

 Refrigeration

• Foods requiring refrigeration to be held at 40° F or lower until being served.

• Keep a thermometer in your refrigerator/freezer to ensure fridge is maintained a 40°F and freezer at 0°F.

• Perishable food should not sit out of refrigerator longer than two hours.

Sanitation

• Disposable utensils and paper products should be used to reduce cleaning and contamination.

• Do not wash or reuse disposable products.

• Sanitize and wipe down all food preparation surfaces and concession equipment frequently.

• Do not overfill garbage cans, and empty them frequently.

For more detailed food handling information, you can download our food risk management report.

Protecting your organization from liability claims

Did you know that liability protection is critical for all sports and recreation organizations? It only takes one injury-related lawsuit to financially ruin your organization. Having the right sports and recreations insurance protection offers you peace of mind.

Finding the right insurance coverage doesn’t have to be difficult. We at SADLER understand the specific needs and unique risks associated with your sports or recreation organization.

If you would like to learn more about liability prevention or are ready to get a customized insurance quote, you can apply online now or call us at 800-622-7370.

There are no obligations and most quotes are sent in just a few hours. With no application fees and the most competitive rates in the industry, what have you got to lose?

 Sources:
  • Stadium Foods Present Unique Food Safety Risks: Part 1 And Part II; April 19, 2010; Richard J. Arsenault.
  • Food Safety Hints for Non-Profit Organizations and Schools; Fort Wayne-Allen County Department Of Health; Ft. Wayne, Indiana.
  • A Quick Consumer Guide to Safe Food Handling; University Of Minnesota; Feb. 4, 2009; Parts Adapted from Your Safe Food Handbook, USDA, Feb. 2008.

New Technology Enhances Event Security

Game Changers

We all know about game changers. Sometimes it’s a certain player, a momentum swing, the venue or fans, and other times it’s an event that makes us stop and rethink our views on one particular topic or another. The bombings at this year’s Boston Marathon qualify as a game changer.

It’s often a catastrophe that makes us re-evaluate our priorities. In the case of the Boston Bombings, we have been forced to address our personal safety and the safety of participants at sporting events.

Increasing event security

In attempts to strengthen event security at its football games, the NFL recently banned spectators from bringing in purses, coolers, backpacks and other miscellany. Some view this as overkill, while others view it as the natural evolution in the continual ramp up of security measures in a volatile setting.

The tech revolution

The technology boom is also helping to strengthen event security. While closed-circuit television is still the industry’s main method, it is the use of cellphones that has been most beneficial in enforcing safety regulations at sporting events, and not just among event staff. Many venues advertise a number for spectators to text or call if other patrons become unruly or are acting suspicious. And did you know there are apps available for reporting security issues? Fans may now anonymously submit complaints/observations using ISS 24/7 (or other) software. Game changer!

In addition to security hotlines, social media has helped to police patrons at sporting events. People love Facebook, Twitter and Instagram. Many sports teams and event management companies have learned to use these tools to their advantage. They post on their accounts to spread the word of inclement weather, evacuation notices and other pertinent information.

Smartphones are good for more than just checking your Twitter feed. They are also important in documenting fan behavior at games, both good and bad.  In a world where anyone can be famous on the Internet, staying on your best behavior can mean the difference between YouTube fame and infamy.

Source: Kelly Martin,  “Safety and Security: Changing your game for the better,” Sports Destination Management. Sept./Oct. 2013.

Aftermath of the Boston Attack

Looking at the impact on Sports Event Insurance

The Boston Marathon terrorist attack has sent shock waves through the sports event insurance industry, creating uncertainty about whether certain event coverages will be offered and at what limits. At a minimum, terrorism premiums for high-risk events are expected to skyrocket.

After the 9/11 terrorist attack, underwriters responded with enhanced risk management for arenas and stadiums. However, closed venues are much easier to secure than open events such as a marathon that has a 26.2 mile course.

The 9/11 attacks also resulted in private insurance carriers excluding terrorism coverage under General Liability policies, which was picked up by the federal government for a buyback of less than 5% of private insurance premiums in most cases. After 9/11, the terrorism coverage buyback was typically only purchased by larger event promoters in major population centers. However, the Boston attack has given rise to speculation that the terrorism buyback will become much more expensive and many smaller event promoters outside of the major population centers will be interested in its purchase.

The next question is what type of liability event promoters and organizers have in the first place to prevent terrorist attacks. At first glance, event security against terrorist attacks would primarily be a matter for law enforcement. However, event promoters and organizers can have liability for not implementing risk management controls and coordinating with law enforcement. The industry will undoubtedly respond with enhanced risk management requirements based on the lessons learned from the Boston attack.

Source:  “Boston Attack Leads Sports-Event Insurers To Reassess Business,” bloomberg.com. Aaron Kuriloff and Mason Levinson.  April 17, 2013.

The Athletic Participant Exclusion

Difficult to understand in context of special events or competitions

General Liability policies often include an Athletic or Sports Participants to exclude exposure for sports activities that may occur at special events for nonprofit associations and corporate picnics. However, the wording in this exclusion is unclear and can lead to surprising results when interpreted by claims departments and courts.

The exclusion states that the insurance policy does not cover “bodily injury to any person while practicing for or participating in any contest or exhibition of an athletic or sports nature sponsored by the named insured.” The two most common issues are determining whether a particular activity is an athletic or sports contest and what is meant by Athletic Participant Exclusion“practicing for or participating in.”

Unfortunately, most policy versions of this exclusion do not define these terms, and court decisions are all over the board in rulings. Here are examples of how various courts have ruled:

  •  A rodeo event where participants attempted to remove ribbons from a bull’s horn was found to qualify as a contest of an athletic or sports nature since the participants were engaged in physical activity for pleasure. The Oklahoma court instructed that the word “contest” means a competition or struggle for victory and “sports” is defined as physical activity engaged in for pleasure.
  • The Louisiana Supreme Court ruled that cheerleading activities during a football game did not constitute a sports contest since cheerleading was ancillary to the real sporting event – the football game.
  • A New Mexico court ruled that a jockey was not practicing for a horse race while exercising a racehorse. The court reasoned that “practicing” means the same act or acts required for success in the sport in question or at least so similar as to develop the particular capabilities and skills essential to success. Furthermore, the risks accompanying practice must be the same as those faced by a participant in an actual competition.
  • A Louisiana court ruled that a football team’s school-supervised, off-season weight-lifting program was not practicing football since practicing for football involved running of plays, passing, blocking, tackling, etc.
  • A Michigan court ruled that a referee was not a participant in a hockey game because a participant is “actively involved in the contest either individually or jointly with team members, but the referee has “an uninvolved role and is responsible for the application of the rules to the contest.”

Where the exclusion is present, what would the claims department of the insurance carrier or the courts decide in the event of an injury at a company sponsored fishing tournament? This question was recently posted to the Big I University faculty in their April, 2012 online publication. The faculty members were divided on the predicted outcome.

Based on the lack of definitions in the Athletic or Sports Participants Exclusion and the unpredictability of the above rulings, policyholders should always assume that the exclusion removes all coverage for anything similar to an athletic event or practice unless written clarification has been received from the underwriter or claims department of the carrier.

 Source: A Closer Look at Tricky Coverage Issues; Robert Redfearn, Jr.; Insurance Journal; Sept. 3, 2007

Super Bowl Insurance and Risk Management

More at risk than the main event

Special sport events insuranceSuper Bowl fans are likely unaware of the risk exposures of the event and those extending far beyond the venue’s gates. Planning of an event the size and scope of a Super Bowl begins years in advance. The types of insurance policies typically needed for a Super Bowl-type of event are spread among multiple insurance carriers and include the following:

  • General Liability and Excess (limits may exceed $100 million)
  • Property
  • Media Liability
  • Event Cancellation
  • Weather Insurance

And there are Super Bowl exposures that require risk management controls:

  • The event itself, including field, stands, and surrounding parking lots for the normal exposures of slip/trip/fall, crowd management, and security
  • Preparation for potential terrorist attacks, including prevention and response
  • Halftime show with all the people on stage and fireworks
  • Pre-game airplane flyover
  • Adverse weather that prevents participant and ticketholder arrivals and departures, including postponement and cancellation contingency plans.
  • Surrounding activities such as pep rallies, parties, entertainment events, etc.
  • Collapse and other liability resulting from temporary event structures such as stages, bleachers, platforms, tents etc.
Source: Planners Tackle Super Bowl Risks, Rodd Zolkos, Business Insurance, January 30, 2012

Marathon, Triathlon, Walkathon

Expect the Unexpected

I came across an excellent article entitled Insurance: Expecting the Unexpected on the sports insurance and risk management considerations of hosting a sporting event such as a marathon, triathlon, or walking event. The article is presented in a way that is easy for the layperson to understand and includes plenty of real life injury examples.

The insurance coverages discussed include Accident, General Liability, Workers’ Compensation,  Equipment, Business Auto, and Event Cancellation and Weather insurance.

The risk management techniques discussed include participant waiver/release forms, collecting certificates of insurance from vendors, first aid stations, EMT, and review of contracts.