|
In Cooperation with
| |
Sports & Entertainment
Football, tennis or ski jumping – in many kinds of sports nowadays it’s not only
about winning, records and rankings any more, but at the same time about
record-breaking transfer payments, club budgets and endorsement contracts. The
field of sports has gained a huge economic dimension. The actors are
increasingly faced with a number of economic risks, risks they often cannot
shoulder on their own. The players, sponsors and teams therefore are in
need of tailor-made coverage and protection. Such a coverage could consist of
the following components:
Sports
Disability Insurance
Sometimes it only takes one hard tackle in the penalty area, and a serious
injury received there can put an abrupt end to a career. For many athletes this
also means the loss of their livelihood. A sports disability insurance cannot
bring back health, but it will ensure your future financially. It is not only a
sensible precaution from the athlete’s point of view, but also for the team or
club in question, as the loss of a top performer will inevitably leave deep
traces in the books of any club.
Event Cancellation Insurance
There will always be some residual risk to the organisation of an open-air
sports event, no matter how perfectly organised. An adverse weather condition
for example could make a ski slope unusable. A stadium might have to be cleared
due to a bomb threat. There are many reasons which can lead to the cancellation,
interruption, postponement or relocation of a match or competition. An event
cancellation insurance will help to cover the financial risks arising from such
an incident.
TV Revenue
Loss Insurance
Revenue
from TV broadcasts has long since become a fix asset in the financial planning
of many sports clubs. But what if they fail to come? You can never rule out some
technical breakdown during broadcast. If a competition or match is not shown,
there won’t just be a frustrated audience, but the financial loss for the host,
the marketing agency or TV station will be just as great, depending on who is
going to be held responsible for the financial losses. An insurance for the loss
of TV broadcast revenues can help to lower such a risk.
Advertising
Loss Insurance
The
sponsors of a winter sports event were supposed to appear on a big advertising
panel behind the podium for the award ceremony. But a sudden storm swept away
both podium and advertising panel. The award ceremony had to take place on a
makeshift rostrum. The sponsors were therefore not visible, and demanded a
refund. In this case, an advertising loss insurance will take over.
Prize
Indemnity Insurance
The
picture went deep into the heart of the fans: The players were clinging to each
other, sobbing uncontrollably, when the club was relegated. Such situations make
up the appeal of a sport, but for the executives and people in charge in the
teams they are the worst case. They can undo any long-term financial planning in
an instant. A prize indemnity insurance will help minimise the financial
consequences of a relegation. And it will also help in case of promotion, if for
example suddenly bonuses
have to
be paid.
Death & Disgrace Insurance
When our star got in
trouble with the Finance Court, his advertising slogan “I’m on” suddenly
acquired a whole new meaning. Which made his main sponsor quickly get rid of
this promoter. Advertising campaigns concentrating on one famous person only
face a high risk: if they have to be stopped because of a flaw in the star’s
image or, even worse, because something happened to the star himself, then all
the pre-production costs for the campaign will go down the drain. A death and
disgrace insurance will cover such a case and make up for the loss.
Sports
Facilities All-Risks Insurance
Nobody
wants them, but they do exist: fans whose only aim is to destroy and damage, the
so-called hooligans. The damage they create can be considerable, and it’s
usually not them who pay. A sports facilities all-risks insurance will cover
damages within and to sports facilities.
Attendance
Bonus Coverage
Star
athletes can afford to ask for a lot of money just for taking part in a
competition. But what if due to an illness they are not able to compete? Is
there a chance to get back the attendance bonus paid? After all, many spectators
come to the stadium especially to see the stars. With an attendance bonus
coverage, the organiser is on the safe side.
Defence
Insurance for Organiser, Teams and Association
The
stage supplier didn’t manage to get his equipment to the location in time. So
they had to hire another supplier at short notice, who in turn was well aware of
the difficult position the organisers were in - and he used this knowledge well
when he fixed his price. This annoyed the organiser, and they sued the original
supplier for breech of contract. As the organiser had a defence insurance, the
value of the claim was no problem, despite the otherwise difficult financial
situation. This insurance will also help with lawsuits of members of staff
before the labour court or with other legal disputes.
Organiser’s
Liability Insurance
The
organisers were surprised by the masses of visitors, their safety arrangements
were not sufficient for that. One grandstand broke down, a tumult followed, and
as a result many people were injured. For such damages, the organiser is liable
without limit according to German law. The financial liability at least can be
covered by an organiser’s liability insurance.
Indemnity
Insurance
Sports
is no longer just about winning, but also about a lot of money. Players are
bought and sold, licences granted, rights marketed. For clubs, enterprises,
associations and agencies this means good business and money, but also new
risks. Rights can be violated, partners may make claims due to financial losses;
all this can turn into a financial burden far higher
than
the available budget. An indemnity insurance
will limit such existential threats.
D & O
Insurance
No
manager nowadays will take over any leading position without a D & O insurance
(directors and officers liability insurance). The voluntary directors of a
sports club have comparable risks, but only very few can boast a D & O insurance
here. At the same time, they can be made liable with their private property to
the same extent as any company director, if claims are raised against them due
to financial losses. A D & O insurance will insure them against this risk. The
same goes naturally for professional sports managers.
Of course there are also situations
which require a special solution and cannot be covered by the components
presented here. Get in touch with us, and we will do our best to find a solution
for you.
Would you like to receive more information? You can download all
documents from here or contact us by
e-mail if you wish.
|
