It is vital your club protects its assets with adequate insurance. Insurance is a common risk management tool, which may be used to minimise your club’s liability.
However, insurance is a reactive rather than a pro-active risk management tool. Other risk management strategies should be adopted in order to reduce the risk from occurring in the first place. Read more on risk management.
Examples of legal claims/risks sporting organisations are exposed to:
- Negligence claims – eg. personal injury or decisions made
- Criminal liability – including claims for sexual offences
- Discrimination and harassment
- Occupier’s liability
- Work Health and Safety
- Employment liability – eg. unfair dismissals.
What club committees should do
If you require or are unsure about insurance, talk to your state/national body about insurance in your sport in the first instance.
Types of insurance
Your club’s risk assessment process will identify the type of risks the club is subject to. This will help determine whether insurance is available and appropriate. Some policies that may be applicable to your club:
- Public liability insurance
- Professional indemnity insurance
- Directors and officers liability insurance
- Associations liability insurance
- Personal accident insurance
- Occupational health and safety cover
- Workers compensation
- Property contents insurance
- Fidelity insurance
- Building insurance
- Travel insurance.
Checklist for managing your insurance
This checklist should be used by the board on an annual basis to manage your club’s insurance.
Identify Yes or No to each question – and the action required.
Have we identified the risk which can be transferred to an insurer?
- Bodily injury as a result of negligence
- Third party property damage as a result of negligence
- Negligence by individuals in carrying out their professional duties (ie.coaches)
- Personal injury to officials, coaches etc
- Theft or damage to the organisation’s property, etc.
Have we taken out appropriate and relevant insurance?
- Public liability
- Professional indemnity
- Directors and officers liability
- Associations liability
- Personal accident
- Occupational health and safety
- Workers compensation
- Property content/building
- Types of insurance.
Do we understand our insurance policy?
For example, do we know:
- What is covered?
- What is excluded?
- Who is covered under the policy?
- When are they covered?
- Where are they covered?
- What is the level of cover?
- What is the excess if a claim is made?
- Is the policy a claims made or an occurrence policy?
- Have we have shopped around for a competitive premium price?
- Have we made all relevant disclosures to our broker/insurer?
- Have we consulted with all relevant people in our organisation in relation to potential claims?
- Safe Club is a risk management system for local sports clubs that specifically addresses injury prevention.
- NSW Sporting Injuries Insurance Scheme
- The Australian Sports Commission has information on insurance for clubs.