What Is Sports Insurance: What’s Covered and Why It Matters

Choosing the right sports insurance is a key part of smooth operations for sports organizations. From injuries on the field to liability claims, costs can add up quickly. The right coverage protects athletes, teams, and sports facilities.

Sports organizations can have a lot of moving parts.

From liability, to property insurance, to injury coverage – insurance for sports teams and professionals can get complicated.

That said, having comprehensive coverage in place ensures that everyone, from your players to your coaches and admin staff, is financially and legally protected.

Here, we’re explaining exactly what sports insurance is, along with the specific coverages needed to protect sports organizations and their members. 

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Click below to find what you need:

• What is sports insurance?
• What kind of insurance do sports organizations need?
• Insurance coverages for athletes explained
• Insurance coverage for youth athletes 
• Insurance coverage for sports facilities 
• Why insuring sports facilities matters 
• Choosing the right policy
• What’s not covered?
• Who pays for athlete injuries?
• How much does sports liability insurance cost?

So, what is sports insurance?

So, what exactly is sports insurance? Let’s jump into it. 

At its core, sports insurance refers to a type of business insurance coverage designed to protect sports organizations along with their athletes, teams, coaches, and facilities from financial losses. 

These losses can be related to accidents, injuries, property damage, cyber attacks, and more. 

Depending on the organization’s needs, policies can be designed to cover everything from medical costs and liability claims to damage to equipment or sports complexes.

Like other industries, insurance in sport is not one-size-fits-all. 

Depending on the organization or athlete, coverage can include:

• Athletics insurance for individual players or professional teams
• Youth sports insurance coverage for minor athletes
• Sports facility insurance for gyms, arenas, or local clubs
• Insurance for youth sports teams to protect coaches and volunteers
• Sports complex insurance for large venues hosting multiple events

Having insurance in sport ensures that when accidents do occur (which is almost inevitable, especially when dealing with athletes) the financial burden doesn’t fall entirely on the athlete, coach, or organization.

What kind of insurance coverage do sports organizations need? 

There are a lot of factors when it comes to operating sports events and organizations. 

This also means there are different risks that teams and organizations face daily.

A few examples of common insurance “risks” that sports organizations face include:

• Property damage: Damage to stadiums, arenas, training facilities, locker rooms, or equipment caused by weather, fire, or vandalism. This can run sports organizations anywhere from a few thousand to millions of dollars in damages – which is why having the right coverage is key!
  
• Theft or loss: Loss or theft of athletic equipment, merchandise, cash from events, or sensitive digital data assets like ticketing or fan data can also be a very costly loss – both from a financial and legal standpoint.
  
• Liability claims: Claims arising from spectator injuries, player injuries, or third-party injuries during games, practices, or events (ex: slips and falls or crowd incidents) are not uncommon. Having the appropriate commercial general liability insurance in place is key important to ensuring you can continue to operate.
  
• Vehicle accidents: Accidents involving team buses, staff vehicles, or rented transportation while traveling to games, practices, or tournaments, can seriously interrupt operations – whether someone is injured, or games are missed.
  
• Health and injury risks: A lot of people keep sports organizations running. Player, coach, or staff injuries, including both acute injuries (fractures, concussions) and long-term health issues that may result in medical costs or lost playing time.
  
• Loss of income: This can be due to revenue loss from canceled games, reduced attendance, weather-related closures, or disruptions such as facility damage or public health restrictions.
  
• Natural disasters: Events like floods, hurricanes, extreme heat, or wildfires can force event cancellations, damage facilities, or endanger athletes and fans.
  
• Legal and regulatory risks: Lawsuits or penalties related to player safety standards, employment laws, anti-doping regulations, contracts, or league governance rules are not uncommon, especially for very large sports organizations.

Without the proper insurance coverage in place, any number of these insurance risks could seriously set sports leagues or organizations back. 

As an organization official, speak with a qualified sports insurance broker or professional to make sure you have what you need. 

The commercial team at KBD is happy to help. ☺️ Give us a call today.

Types of insurance coverage for athletes explained

Competing or training at a high level comes with risks. Athletes, whether they’re amateur or professional, risk injury every time they step on the field, court or gym. 

Athletics insurance is designed to cover medical bills, rehabilitation, and sometimes lost income if an injury prevents the athlete from working or competing.

Specific coverages for athletes can include:

• Medical expenses for injuries
• Accidental death and dismemberment
• Liability for unintentional harm to others
• Coverage for travel to competitions

Making sure your athletes are properly protected is a good business practice for individual athletes and the team as whole. 

Questions? Get in touch with our team of insurance brokers, experienced with insuring sports organizations, today.

Call us.

Types of insurance coverage for youth athletes 

In Canada, “youth sports insurance coverage” refers to coverage for athletes under 18 years old. 

For young athletes, and youth programs, being insured is just as important. 

Accidents can happen during practices, games, or even travel. 

Insurance for youth sports teams ensures that parents, coaches, and volunteers aren’t held financially liable if an injury or accident occurs. 

This type of insurance typically covers organized programs, tournaments, and travel-related incidents. Additionally, insurance for youth sports teams not only covers injuries but also protects coaches and organizers from liability claims. 

This type of policy can also include coverages such as:

• Travel to and from games or tournaments
• Overnight trips for out-of-town competitions
• Volunteer or coach negligence claims
• Event cancellations or interruptions

Without proper insurance, even minor injuries can result in significant out-of-pocket expenses, so youth sports insurance and athletics insurance are a necessity.

Types of insurance coverage for sports facilities and arenas

Athletic venues take on a lot of risk by nature of their operations. 

Think about it: Sports facilities and arenas host thousands of audience members, as well as food and merch vendors – not to mention the sports teams themselves. 

Sports complex insurance protects against property damage, liability claims, and other risks that arise from day-to-day operations, including hosting leagues, tournaments, or community events.

Insurance coverage for sports facilities should typically include:

• Property damage insurance: This covers damage to the facility’s physical structures, including seating, court flooring, lighting, scoreboards, locker rooms, and concessions, whether caused by natural disasters, accidents, fire, or vandalism.
  
• Liability coverage for injuries: Falling under commercial general liability insurance, this protects the facility against claims arising from injuries to spectators, athletes, staff, or visitors due to conditions found unsafe, equipment failure, overcrowding, or slips and falls on the premises.
  
• Equipment and inventory protection: This covers loss or damage to facility-owned equipment and inventory. This can include things like goalposts, hurdles, mats, gym equipment, maintenance machinery, merchandise, and concession items.
  
• Business interruption coverage: This is a standard commercial insurance coverage that provides financial support for lost income and ongoing operating expenses if the facility has to temporarily close due to things like storm damage, structural repairs, or safety-related shutdowns.

Put simply, insurance for sports facilities ensures unforeseen events don’t derail operations.
 
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Why insuring sports facilities matters

As the main training and gathering spaces, sports facilities are at the heart of every sporting organization.

From arenas to private training centers, these venues carry significant risk, so having the right sports complex insurance matters. 

Insurance for sports facilities helps cover:

• Injuries to players or spectators
• Damage to equipment or infrastructure
• Lawsuits arising from accidents or negligence within the facility
• Loss of income due to event cancellations, or temporary closure of the facility
• Damage to the building itself

Insurance for sports facilities is key, whether they host team training, leagues, or public events. 

It provides a layer of protection so that the facility can continue operations even if an insurance claim arises.

Insuring sports facilities isn’t just about compliance; it’s about safeguarding buildings, equipment, and funds. 

That way, organizations can focus on performance, knowing they’re properly covered.

Choosing the right sports insurance policy

The type of sports insurance coverage and the limits for each policy depend on the team, sport, number of players, employees, and more. 

Selecting the right policy requires consideration of several factors, including:

• The type of sport: Contact sports, or high risk sports will likely require more comprehensive coverage than non-contact activities.
• Age group: Youth programs may need additional protection for minors.
• Facility type: Indoor arenas, outdoor fields, small gyms, and large multi-use complexes all carry different risks.
• Events and tournaments: Travel, overnight stays, and competition schedules can all affect coverage needs for a sports organization.
• Budget: Balancing adequate coverage with annual premium costs is essential.

Working with an experienced insurance broker can help organizations and athletes navigate options to be sure they have what they need. 

Need a sports insurance quote? Call us.

Sports insurance: What’s not covered

As we’ve covered, having sports insurance is important for organizations and the players and employees that work within them.  

However, it’s important to understand the limits of your coverage so there are no expensive surprises.

For example, a few things that may not be covered and/or have policy limits, include: 

• Intentional or reckless acts: Injuries or damage caused by deliberate actions, fighting, or gross misconduct by players, staff, or spectators may be excluded from coverage.
• Extreme or high-risk activities: Certain activities (ex: stunt performances, extreme sports events, or unapproved competitions) may be excluded or require separate, specialized insurance coverage.
• Pre-existing injuries or conditions: Medical costs related to injuries or health conditions that existed before coverage began are commonly excluded or capped.
• Wear and tear or poor maintenance: Damage resulting from regular wear, lack of upkeep, or failure to meet safety standards is typically not covered.
• Alcohol or drug-related incidents: Claims arising from intoxication, substance abuse, or failure to properly manage alcohol service may be excluded or subject to strict limits.
• Event cancellation due to non-covered causes: Losses from cancellations caused by low ticket sales, scheduling conflicts, or voluntary decisions are often not insured.
• Cyber incidents or data breaches: Losses related to hacked ticketing systems, stolen fan data, or ransomware attacks are usually excluded unless cyber insurance is purchased separately.
• Fines, penalties, and reputational damage: Regulatory fines, league sanctions, and loss of reputation or sponsorship value are generally not covered under standard policies.

Be sure to run any specific questions by your broker. They’ll be able to explain the coverage limitations that apply to your organization and policy. 

Questions? Call us. We’ll be happy to help.

So, who pays for athlete injuries?

In most sports settings, there isn’t a single party that always pays for athlete injuries. 

Instead, responsibility is usually determined by how the insurance policy is structured and the circumstances of the injury.

Typically, sports insurance is layered, and includes aspects like:

• Primary coverage: This is often the athlete’s own health insurance, which pays first for medical treatment. In Canada, this typically would be under Canada’s universal health care plan, depending on the type of injury.
  
• Secondary or excess sports insurance: This is purchased by the league, club, school, or event organizer, and falls under the commercial sports insurance umbrella. It typically covers costs not paid by the athlete’s personal insurance.
  
• Liability insurance: This applies when an injury is caused by negligence (for example, unsafe facilities or inadequate supervision), and covers legal defense costs and settlements. This would be part of the sports organization’s commercial insurance coverage.

In short, athlete injury costs are usually shared across multiple policies, with personal insurance paying first and the organization’s specific coverage filling the gaps. 

The exact payout depends on the policy terms, such as whether the activity was approved, and whether negligence or employment status is involved.

Questions? Call us. We’ll be happy to help.

How much does sports liability insurance cost?

As a commercial coverage, sports insurance can cost anywhere from $500 to tens of thousands of dollars a year, depending on the size of the organization. 

Famous sports organizations have been known to pay multiple millions a year – and that’s just to insure their star players. 

However, the specific cost of sports liability coverage depends on a few factors, including:

• Type of sport and level of risk: Higher-contact or high-speed sports generally carry higher premiums due to the increased likelihood of injuries.
• Size and scope of the organization: Larger organizations with more teams, athletes, events, or spectators typically face higher insurance costs because of greater exposure.
• Facility type and condition: The age, size, and maintenance of facilities such as arenas, fields, or training centers can affect premiums.
• Number of participants and spectators: More athletes, staff, and attendees increase the chance of accidents or injuries, which insurers factor into pricing.
• Claims history: Organizations with prior injury claims or lawsuits may pay higher premiums, while those with a strong safety record may qualify for lower rates.
• Coverage limits and deductibles: Higher policy limits provide more protection but increase premiums, while higher deductibles may reduce upfront costs.
• Risk management and safety protocols: Organizations with formal safety procedures and emergency response plans may receive more favourable pricing.

As always, the best way to know how much your policy will cost is by getting a tailored quote. 

We can help with that. Call us.

Wrap-up: Sports insurance in a nutshell

Sports insurance is a financial safety net and a key component of running a successful sports program or facility in Canada. 

From athletics insurance for players, to sports insurance for facilities, having the right coverage allows organizations to focus on performance and development rather than risks. 

Whether it’s insuring sports facilities, providing individual athlete insurance coverage, or protecting a community sports complex or event, sports insurance keeps things running smoothly on game day. 

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