Where would sport be without its volunteers?  I am sure most sporting organisations would not exist today without the contribution over the years of their voluntary workers.

However it is also a fact that sporting organisations are finding it increasingly difficult to recruit and retain volunteers.  The demand of modern society on time contributes to this situation, but the exposure of the volunteer to risk is certainly another contributing factor to this situation.

The trend of increasing litigation sees the volunteer, as well as the participant and paid employee, at risk of being involved in a negligence claim.  It is hard enough to accept that paid employees are exposed to this risk as part of their sports role, but even more so that volunteers, who are giving their best for the benefit of others, can find their own personal assets on the line due to litigation.

Initiatives such as the Volunteer Improvement Program (VIP) have been put in place to assist in the recruitment and retention of volunteers, but sporting associations need to take their own actions to support their valuable people.  Recognition of the efforts of volunteers is important, but what can be done to protect them from the financial risks of litigation?

Sport's first priority should be to prevent circumstances occurring which present opportunities for litigation to take place.  This process can best be described as risk management, which includes the identification and management of risks.  However, despite all best efforts in regard to prevention, we also need to provide the safety net of appropriate insurance for those incidents which still occur.

So, what types of insurance can be put in place to protect those involved in sport from the financial burden or litigation? 

Common insurances are:

Public / Products Liability Insurance
Public liability insurance protects against actions taken claiming negligence which has contributed to an incident resulting in injury or damage to property.

Professional Indemnity
This cover indemnifies the insured against claims for compensation for breach of professional duty by reason of any negligence by way of act, error, omission or advice.  For sporting bodies this type of cover is particularly relevant to coaches and referees, but also applies to medical staff and other "professionals" involved in sport.

Directors and Officers Liability
This insurance indemnifies the Directors, Committee members, Trustees, Executives Officers and any other Officers of the sport against "wrongful acts" committed in their respective capacities within the sport.

"Wrongful Acts" includes breech of trust, breach of duty, neglect, error and omission.

Association Liability Insurance
This cover is specially designed for incorporated associations and is best described as a combination of Professional Indemnity AND Directors & Officers insurance.

Whilst not pertaining to be  litigation area, another insurance protection for volunteers is Voluntary Workers Personal Accident.  This cover provides financial protection to the volunteer should he or she be injured whilst carrying out his or her duties.

This is not intended to be an exhaustive list of insurance types and the cover description is very broad, but it will provide a useful outline.  It is extremely important that professional advise is obtained to ensure that cover is tailored to meet the specific requirements of the sport.

                 ROD HUGHES, National Sport Risk Manager
                                                                  Summer 1997
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Email:info@ieasport.com.au

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