CHOOSING SPORT SUMS INSURED A recent spate of threatened legal actions resulting from sporting accidents has highlighted the enormous responsibility placed on the sports administrator and/or board of directors. As a sports insurance adviser for the past 19 years, I speak with experience when I say that litigation is becoming alarmingly more prevalent. Administrators and their board members may be held liable for negligence if the sum insured on their insurance is found not be adequate. A player who suffers a severe spinal injury will be burdened with ongoing medical and rehabilitation costs for many years after the accident. In addition, there are extra costs associated with providing suitable accommodation, together with the loss of income, cost of domiciliary care and physiotherapy - all of which escalate the financial loss. An example of a financial loss:
Tragic accidents impact severely on the participant, their family, the sporting body and its management, members and the insurance advisors. The fact that the sport generates its revenue primarily from its own membership base places the sports administrators in an onerous position when purchase of insurance is discussed. |
While I don't have a quick fix, I do know that minor medical costs and short-term income losses, although unpleasant, are insignificant when compared to spinal injury incidents where the player is given little chance of recovery. My message to all sports administrators and members of sports boards, is to buy the maximum amount of tragedy and liability insurance your finances will permit. No amount will ever be enough in cases of this nature, and despite having done the utmost with the finances available, you may still be questioned as to the adequacy of the policy sum insured. I cannot help but voice concern at the number of sporting organisations who request our IEA staff to arrange insurance for low tragedy limits and equally low liability limits. When an horrific injury occurs and the participant or his family seek legal advice, the question of adequacy of sum insured becomes a high priority. It is at this time that both organisations become a target for a claim of negligence. My advice is to 'buy a tragedy and liability sum insured until you
feel the pain'. It may well be inadequate, but it does show a
professional commitment to act with due diligence in the position of
trust which applies. Winter 1999 IEA
has offices in every state. National freecall number 1800 SPORT
1 Disclaimer The
information provided in this Email and on the IEA web-site is to be
used as a reference only. IEA accepts no responsibility for the
accuracy of the information or your reliance upon it. The
views of contributors are their own and do not necessarily represent
the views of IEA |
