The management committee of any sport and recreation organisation must consider the need to protect the organisation from financial risks by taking out appropriate insurance cover. There are a wide range of insurance products available and the best strategy is to talk to insurance brokers who deal with sporting organisations regularly. OAMPS is a well known broker.
Public liability covers the organisation against liability to pay compensation for any injury or financial loss sustained by a third party as a result of negligence on the part of the organisation. A third party is someone who is not a member of the organisation, or an employee of the organisation.
Public liability policy does not cover any loss or injury that arises as a result of participation in sport and recreation activities by members of the organisation. It does however cover the organisation for claims for compensation by members of the public if they sustain any injury or loss while on the premises of the organisation.
The organisation can cover itself against claims for compensation arising from the negligence of coaches or officials who provide service to persons participating in the organisation's events, programs and activities. It is highly likely that coaches and officials must be properly accredited for any insurance claim to be successful.
Coaches can, if they so wish take out their own insurance cover if they are free-lance or self-employed.
It is commonplace for registered players to have some limited cover for injuries sustained in the course of participating in events, programs and activities of the organisation. This insurance cover arises as a result of the national or state sporting organisation arranging the insurance and then recouping the premium by imposing a small levy on everyone through player's registration fees.
Directors and officers liability insurance covers members of the management committee or board for legal costs if they fail to carry out their role as an officer of the organisation with due diligence. This type of insurance cover would cover, for example, legal costs that may occur as a result of attending official investigations or inquiries concerning the affairs of the organisation.
Organisations staging special events can insure against a wide range of risks including cancellation of the event, the impact of weather on the event, or if a certain contingency happens (such as a large payout of prize money or the non-appearance of a very important personality or competitor.
As with any other employer, it is mandatory for organisations to take out cover in case employees suffer any injury while in the course of carrying out their work duties.
If a sport organisation owns any kind of vehicle, then it should have motor vehicle insurance. Damage to, or damage caused by a vehicle owned by the sport organisation cannot be covered by any of the above forms of insurance.