In spite of the financial wealth that the sports industry has, it still fails to take preventive measures to protect its players, league, and assets. Sports insurance is a necessity considering the risks that a player carries both inside and outside of his game.
But managers on the other hand urge their players to acquire one just for the legal requirement paying no attention to its policies and coverage.
This article explains the flimsy excuses that the entertainment industry makes for not insuring their players properly along with the risks that it comes with.
1. My Crew & I Have Never Had A Serious Injury
This is one of the most common excuses that managers from the sports industry make. They use the past to justify the future. Just because you and your crew have never encountered a legal issue or a serious injury in the past, doesn’t mean you’ll continue to do the same in the future.
Risk management is best done in advance as a preventive measure. This will protect you from getting into legal trouble and paying huge financial compensations.
2. Do We Need Accident Insurance For Our Players Who Already Have One On Their Own?
Most players might get protection from state and federal immunity. But they certainly wouldn’t prevent lawsuits from getting fired. You might have to spend up to $10,000 just to provide that you have protection.
And one must also pay attention to the fact that this doesn’t protect the sports organization. This means that all your assets are still at risk.
3. Our Sports Organization, Directors, Officers Have Coverage From Recreation Department
Some recreation departments offer general liability policies. But in most cases, these policies only cover the directors, officers, and employees but not the volunteers.
Individual leagues who access the facilities and their respective boards certainly wouldn’t receive coverage. Even if these policies cover the sports volunteers who work directly on their behalf, there will be a lot of limitations.
For example, your coverage may exclude premises practice, games, and non-sports outings. It might also have some dangerous loopholes like Punitive Damages Exclusion, and Sex Abuse/Molestation Exclusion.
4. Our Players Don’t Need General Liability Policy, They Have Their Own Personal Umbrella Policy
Most players and managers aren’t aware of the fact that a personal umbrella policy wouldn’t cover lawsuits that arise from your actions as a sports volunteer.
Even if one such policy were to provide total protection to a player, not every player would have one. The funds and properties of your league are still vulnerable because these policies wouldn’t protect your league on the whole.
5. The Parents Of Our Players Have Signed Waiver Forms
Waiver and release forms are definitely a step in the right direction. But they are still too primitive to serve as a good line of defense. For adults, a well-written waiver or release form is enough to dissolve a lawsuit in most states.
If we are to take minors into account, waivers wouldn’t be of help. If it helps you with dismissing a lawsuit, a legal defense could still cost thousands of dollars in fee. A waiver or a release form will never offer you enough protection as general liability insurances can.
6. Tracking Our Insurances Are A Waste Of Time & Money
Acquiring valid insurance for all your players with every essential coverage is just the first step in the process of securing your team. An expired or invalid insurance is just as useless as having no insurance at all.
Tracking your insurance with a Certificate Of Insurance (COI) Tracker is your only option to prevent this from happening. Using a COI tracker can also save you a great deal of money. Read this to learn more: How Can You Save Money On Sports Insurance? 5 Inside Secrets [With COI Tracking]
If you are reading this as a manager of a sports league or a player who’s volunteering for it, it is time to take action. COI Tracker is a reliable option that almost every reputed sports organization uses.
It can reduce human errors and improve accuracy to always make sure you’re protected legally and financially. Reach out to our tracking experts at (262) 205 0222 and Request A Free Demo.