Appointing an Insurance Broker and Arranging Cover...

Once the broker appointment is made the next step will likely be for the sport administrator and the broker to determine those risks exposures within the organisation to which the safety net of insurance is to be applied.  The broker should present the risks to be insured to the insurance market, promoting to potential insurers exposure risk reduction actions such as the implementation of risk management programs. Having accessed from the insurance market appropriate policy terms and conditions the broker should report back to his client.  The administrator needs to be satisfied that the broker has done the job effectively, providing policy terms and conditions that meet the sports requirements. 

Below are some questions to ask your broker that will assist in this regard.

• Which insurance companies did you receive terms from and what were those terms?

• Which insurance company do you recommend to underwrite the policy and why?  How financially stable are they?  What is their security rating?  What is your experience with their claims management?

• What cover is the policy providing?  The cover to be provided must be specific to sport and recreation activities.  For example, for public liability insurance unless the policy includes cover for participation in sport it is inappropriate.  Similarly it should provide cross liability cover, first aid treatment risk etc.

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• What exclusions apply to the policy?  Do any of the exclusions pose problems in regard to the risks to be insured?

• What special conditions apply?  For example, what obligations does our Club/Association have in the event of a claim?  Do any of these conditions pose problems?

• Who is covered under the policy?  It is necessary to ensure that the policy protects all within the organisation that it is intended to insure e.g. the organisation as a legal entity, the players, officials, coaches, committee members and volunteers as individuals.  In the case of liability insurance, will it provide protection if one member of the organisation takes action against another member of the same organisation?

• When does the policy provide cover?  Does it cover all activities of the organisation - does the policy define the activities covered?  What is the period of insurance?

• Where does the policy provide cover?  Does cover apply to Australia and New Zealand only?  Does it cover all the jurisdictions in which our sport has an exposure?

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