Conference & Meetings World Issue 101 — July / August | Page 47
Sports insurance
wish to take note of some of the key
event insurance considerations:
Cancellation and
Non-Appearance
This is vital for
organisers of any
tournament or major event.
Organisers may well look for
comprehensive cover for the cancellation,
abandonment, postponement,
interruption, curtailment or relocation of
any insured event, due to a consequence
beyond the control of the insured.
Some of the other risks
covered could include:
• Damage or destruction
of the venue
• Unavoidable travel delay
• National mourning/Enforced reduced
attendance
• Terrorism
• Communicable disease
Other insurance considerations, not
just for organisers but for participating
teams and sponsors, might include:
Contractual Bonus
and Sales Promotion
It is important to think
beyond what might go
wrong. A player or team
doing well in a tournament can also be
expensive.
Most sponsorship and endorsement
contracts will incorporate
performance-related bonus incentives
and most international teams, like club
sides, would also offer their playing staff
a performance-related bonus to
maximise efforts.
Contractual Bonus Insurance can
protect a sponsor, brand, club, union
franchise or event organiser for their
contractually-assumed liability to award
bonuses to individuals or teams for
attaining defined levels of success or
achievement.
Loss of attraction
This coverage is not
typically covered by
traditional terrorism
coverage. Loss of attraction is tailored to
suit the needs of the client, protect
revenues in the event of terrorist activity
within an agreed radius of the business
of specific agreed locations.
The act of or threat of an act of
terrorism can not only impact the
defined area of the terrorist act or threat,
but can also have a knock on effect to the
wider economy. For example, a terrorist
act at an airport would have an impact
to the resorts the airport serves which
could be miles away from the actual
attack.
“The
challenge
of coping
with
natural
disasters
is a
significant
risk”.
Injury and disability
Although clubs do not
take part in the World
Cup, the fact their players
do is a significant risk. For instance, if
England hero Owen Farrell is injured in
Japan and misses nine months of the
following season, his club side Saracens
must continue to pay his wages and can
be seriously out of pocket if not properly
insured.
Injury is also an issue for national
unions - to ensure their players are fully
covered against the impact of injury
suffered on international duty, including
disability.
said tournament director Alan Gilpin,
who says risk assessment has been vital.
“It’s a complex piece and something
we would do for every tournament. But
this one has a heightened sense of
realism to it. We have to take it
seriously.”
It’s worth remembering, too, that in
2011 an earthquake hit Christchurch in
New Zealand, forcing eight games at
that year’s Rugby World Cup to be
moved to other cities. Many ticket
holders had to be refunded – not to
mention the money spent on switching
venues and changing travel
arrangements.
Howden is one company that has been
providing specialist travel cover for
professionals and amateur sports teams
for decades. Their insurance can cover:
• Personal accident
• Medical and emergency travel
expenses and assistance
• 24/7 emergency & security assistance
• Cancellation, curtailment or change of
itinerary
• Personal baggage and money
• Personal accident
• Passport indemnity, loss of passport
and travel documents
• Playing and training equipment
• Cancellation, curtailment or change of
itinerary
• Travel delay
• Personal liability
Adverse weather and
natural disasters
The challenge of
coping with natural
disasters is a significant risk in this
Rugby World Cup.
Japan is used to dealing with extreme
weather but last year the strongest
typhoon in 25 years hit the western part
of the country, killing 11 people. A few
days later, 41 people died during a
powerful earthquake on the northern
island of Hokkaido.
“It’s a real hot topic for us right now,”
Contact: [email protected]
ISSUE 101
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CONFERENCE & MEETINGS WORLD
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47