Sports facility insurance is a tailored coverage for individuals who manage or own arenas, gymnasiums, outdoor fields, climbing facilities, and stadiums. This insurance plan offers different types of business insurance products underwritten especially for the unique exposures of sports activities.
Sports activities are dangerous as accidents can easily happen. In turn, your sports facility can be sued for the injuries of the participants and spectators. Specialized insurance for sports facility protects you against the resulting costs.
Aside from lawsuits, sports complex or sports centre insurance will also help with the cost of employee injuries and equipment theft or damage.
Read this guide to know how the sports complex insurance works, how much it costs, and the best companies. We’ll also discuss the specialized insurance for water sports centers, climbing walls, indoor sports centers, and soccer fields.
All carriers allow you to get a general liability policy from your sports facility insurance. General liability insurance provides protection when you’re sued for personal injuries or property damage. It will :
Cover the medical treatment or reimburse the medical expenses of the person who got hurt due to the activities in your sports facility
Reimburse the value of the property of the claimant that sustained damage or got broken due to the operations of your sports facility
General liability insurance only provides coverage if the personal injury or property damage claim is filed by someone who isn’t directly associated with your sports facility’s day-to-day operations. Examples are vendors, participants, spectators, and clients.
Therefore, you can’t use this insurance when the claim is filed by your sport’s facility’s employees, players, co-owners, and shareholders.
You can add optional policies to general liability insurance so that it doesn’t only provide protection when your sports facility is sued for personal injuries or property damage. Such optional policies are:
Rented premises liability coverage-Rented premises liability coverage will refund the property owner if a building your sports facility is renting or leasing becomes damaged or destroyed by a fire
Advertising injury coverage-Advertising injury coverage takes care of expenses if your sports facility is sued for slander, libel, copyright infringement, or any other forms of reputational harm or infringement of intellectual rights
Is there a store or booth in your sports facility that sells beer, rum, and many other alcoholic beverages during a sports event? If this is the case, understand that a customer can sue if he or she sustains injuries or property damage after getting drunk.
General liability insurance can’t protect you in such a situation. That’s why you need to include a liquor liability policy in your sports facility insurance. Liquor liability insurance kicks in when a customer sustained injuries or property damage due to intoxication because:
Your sports facility overserved him or her alcohol
The customer was a minor who can’t handle alcohol yet
Your employee failed to recognize that the customer was already drunk
Product liability insurance is useful if your sports facility is selling food or items during sports events. In a nutshell, this covers claims filed because the food sold caused a foodborne illness or the items bought by customers caused injuries or property damage due to design errors, manufacturing errors, and labeling errors.
Sometimes, your general liability, liquor liability, or product liability insurance can’t fully cover a claim because you’ve exhausted its limits or because the claim is too costly.
You have to use personal funds if your insurance can’t fully cover a claim. Your sports facility insurance has an umbrella liability policy that solves this problem.
Umbrella liability insurance, also called excess liability insurance, adds to the limits of your general liability, product liability, or liquor liability insurance. For example, if the funds of your general liability policy fall short to cover a claim, then umbrella liability insurance will fill in the gap.
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The investment needed for building a sports facility is monumental. To build a small sports facility with a capacity of 50-150 people, one needs $25,000-$200,000.
Just imagine the losses if something happens to your sports facility and you don’t have insurance. You have to be vigilant. Buy commercial property insurance for your sports facility.
So how does commercial property insurance work? You can use this insurance to recoup losses when:
Your sports facility’s roofing, siding, wall, pipes, glass panes, courts, or other structures sustain damage
Your sports facility is completely destroyed
Understand that commercial property insurance only helps if damage or destruction is caused by any of the following perils:
Other covered perils
In a way, commercial property insurance allows you to resume business operations even if a major disaster happens to your sports facility. That said, you’re increasing your business’s survival by having this insurance.
Commercial property insurance can be added with contents coverage. Contents coverage will reimburse losses if sporting equipment, installations, fixtures, documents, and other valuables in your sports facility are damaged or destroyed by the above perils.
You can also find insurance companies selling commercial property insurance offering replacement cost coverage and actual cash value coverage.
In a replacement cost coverage, commercial property insurance refunds the original market value of a covered property. And so, you also get $1 million from commercial property insurance if your sports facility is worth $1 million.
As for actual cash value coverage, this provides a reimbursement equal to the depreciated value of a covered property. So, if your sports facility is worth $1 million and it depreciated by 5% before a covered peril happened, you only get $50,000 from commercial property insurance.
Some insurance companies that cover sports facilities allow you to purchase commercial property insurance as an open peril or named perils policy.
Named perils commercial property insurance only provides coverage if damage or destruction of business property is caused by the exposures listed on its terms. For example, if named perils commercial property insurance only states that fire and theft are only covered, then you can’t use it if your sports facility is damaged or destroyed by lightning, hail, or theft.
In contrast, open perils commercial property insurance provides coverage for all exposures except for those excluded in its terms. For example, if the policy states that fire and theft are excluded, then coverage applies if your business property is damaged or destroyed by exposures other than these two.
Accidents will happen in your sports facility and an employee can get injured. It’s also possible for an employee to sustain a disease because of his or her tasks. As mandated by law, your sports facility must provide compensation if an employee suffers from a work-related injury or disease.
Buying workers' compensation insurance is the best way for your sports facility to compensate an injured or sick employee without incurring losses. Particular costs this insurance covers are the following:
Medical expenses-Workers compensation insurance covers ambulance fees, emergency room fees, and other related expenses if your sports facility’s employee sustains an injury due to a work-related accident
Hospitalization-You can use workers' compensation insurance to reimburse the employee of your sports facility if he or she needs to stay in the hospital after sustaining a work-related injury or disease
Medication-Workers compensation insurance covers the cost of stimulants, relaxants, antibiotics, or other types of medicines prescribed by the doctor for your employee to fully heal from a work-related injury or disease
Rehabilitation-If your employee becomes impaired due to a work-related injury or disease, workers' compensation insurance provides the funds to cover rehab expenses. This includes psychiatrist fees, personal training fees, and rehab equipment costs
Lost wage-Your sports facility must cover lost wages if an employee can’t work for days, weeks, or months due to a work-related injury. Workers' compensation insurance takes care of this responsibility. While your employee can’t work, the policy provides a weekly allowance equal to two-thirds or 67% of the average weekly wage. So if your sports facility’s employee earns $800 per week, then the weekly allowance from workers comp insurance will be $536
Death benefits-Workers compensation insurance covers funeral expenses if your sports facility’s employee dies due to a work-related injury or disease. The policy also provides an allowance to dependents
Workers' compensation insurance doesn’t only provide coverage for work-related injuries or diseases sustained at the premises of your business. Coverage also applies if something happened to your employee while he or she is at another location to accomplish a task.
It’s easy to determine how much you pay for workers' comp insurance. Its cost is equal to $100 increments of any covered employee’s annual payroll multiplied by the rate of the insurance company (in most cases, workers comp for sports facilities cost $1 per covered payroll).
Workers' compensation insurance is required by law the moment you have one or more employees. In some states, this is required even if a business is run by family members. Each state in the US imposes its own penalties to sports facilities that don’t have workers comp. Here are some examples:
Montana-Sports facilities that don’t have workers comp must pay a fine amounting to $200 or an amount twice the premiums of workers comp insurance for the past three-year payroll of uncovered employees
Utah-Utah workers comp law states that businesses such as sports facilities that don’t have workers comp are punishable by a $1,000 fine, misdemeanor, legal injunction from operating in the state, and imprisonment
Oregon-Your sports facility will pay $1,000 in the first instance that it didn’t purchase workers' compensation insurance for employees. Any continued violation will result in a $250 fine multiplied by the days your sports facility doesn’t have workers' compensation insurance
Maine-Failure to get workers' compensation in Maine will result in a civil penalty amounting to $10,000 or an amount equal to 108% of the premiums for workers' compensation insurance
Maryland-If your sports facility can’t cover an employee using workers' compensation insurance, it will be fined $10,000.
Georgia-Operating a sports facility in Georgia without workers' compensation insurance is punishable by a $500-$5,000 fine, one-year imprisonment, and misdemeanor charges
Workers' compensation insurance is an expensive policy. Nonetheless, as you’ve seen above, it’s better to have it. The consequences of not having workers' compensation insurance are more problematic than the premiums you’ll have to pay.
Commercial auto insurance is available if your sports facility owns cargo vans, pickups, buses, or any other vehicles used for sporting activities. One thing you should know about commercial auto insurance is that it offers different types of coverages such as:
Auto liability coverage-Auto liability coverage provides help if your sports facility’s bus or commuter van causes an accident. It will pay for the ambulance fees, emergency room fees, and other medical expenses of injured victims. This coverage will also reimburse those who had their property damaged. Note that auto liability coverage is a legal requirement.
Physical damage coverage-It’s up to you whether or not to include physical damage coverage in commercial auto insurance. Physical damage coverage is available as a collision policy or comprehensive policy. Collision physical damage coverage will cover the replacement or repair of parts if your sports facility’s commuter van or bus crashed into something. On the other hand, comprehensive physical damage coverage will pay for parts repair or replacement if your sports facility’s bus or commuter van was damaged by fire, theft, vandalism, and other covered perils
Uninsured/underinsured motorist coverage-Uninsured/underinsured motorist coverage will take care of costs if your sports facility’s bus or commuter van got involved in an accident caused by a driver who isn’t insured or doesn’t have enough coverage
Medical payments coverage-Commercial auto insurance will offer this if your sports facility is in a fault state. Medical payments coverage will pay for the driver and passenger’s medical expenses if your sports facility’s bus or commuter van was accidentally hit by another vehicle
Personal injury protection-This is included in commercial auto insurance if your sports facility is in a “no-fault” state. Personal injury protection covers the medical expenses, lost wages, and rehabilitation of the driver and passengers if your bus or commuter van caused an accident or got involved in an accident
You must understand that the auto liability coverage in commercial auto insurance only covers the vehicles registered under your sports facility’s name.
It won’t cover expenses if the accident is caused by an employee's car or a hired vehicle. Also, know that the policy doesn’t help if your sports facility’s commuter van or bus caused an accident because of a criminal activity.
That said, you need to purchase non-owned auto/hired auto liability coverage to cover accidents caused by a vehicle your sports facility hired or borrowed. Hired/non-owned auto liability coverage is offered as an inclusion to the terms of general liability or commercial auto insurance.
Physical damage coverage doesn’t cover aftermarket parts. Also, it won’t cover repair or replacement expenses if your sports facility’s bus or van got damaged because of a rollover.
Business interruption insurance will help you cover expenses while your sports facility is closed due to a renovation, relocation, or economic crisis. You use this policy to cover mortgage, loans, taxes, payroll, electrical bills, water bills, and other operational costs while your sports facility isn’t generating income.
Employer’s liability insurance covers expenses if an employee sues your sports facility for negligence after sustaining a work-related injury or disease. Sometimes offered as an optional coverage in workers' compensation insurance, this covers settlements, attorney fees, administrative costs, and other legal expenses.
Some insurance companies underwrite specialized insurance plans for indoor sports facilities, water sports facilities, climbing wall facilities, and soccer facilities. Let’s discuss each in the following sections.
Indoor sports facility insurance is a tailored protection for facilities used for badminton, tennis, volleyball, basketball, and other indoor sports.
General liability insurance for indoor sports facilities covers property damage or personal injury claims resulting from spectators or vendors being hit by something, slip and fall accidents, etc. It has a $1 million-$2 million per occurrence limit. Participant accident coverage can be added to its terms.
Liquor liability insurance is offered as a stand-alone coverage. This has a $500,000-$2 million per occurrence limit
Professional liability insurance is included. This covers costs if a coach or any other employee of an indoor sports facility is accused of committing negligence or inaccurate advice.
Other inclusions in an indoor sports facility insurance plan are workers compensation, commercial property, and employer’s liability insurance.
Water sports centre insurance is a protection carriers especially underwrite for sports facilities used for kayaking, fishing, swimming, waterskiing, and other water sports.
A public liability policy is available from water sports centre insurance plans. Similar to general liability insurance, this covers personal injury and property damage claims. In particular, this is useful if someone drowns in your water sports center. This has a $1 million-$2 million per occurrence limit.
You can also avail professional liability insurance. This covers attorney fees, administrative costs, and settlements if an accident happened in your water sports center because lifeguards and other staff were negligent. Policy limits start at $1 million per occurrence.
Of course, there’s abuse and molestation insurance. This will pay for legal expenses if your water sports center is sued because an employee molested or sexually harassed a person within the premises of your business.
Machinery and plant insurance is also included. This will cover repair costs if equipment you own or those that you’ve hired for a water sports activity is damaged or stolen.
Last but not least is engineer inspection coverage. Since you’re running a water sports center, regular inspections are needed to ensure that the premises are safe for use. The job of engineer inspection coverage is to pay for the services of an engineer.
Climbing wall insurance is a specialty coverage for sports facilities that host rock climbing training and sports activities. Inclusions are general liability, excess liability, commercial property insurance, and accident medical coverage.
The general liability policy included in a rock climbing wall insurance plan will have a $1 million-$2 million per occurrence limit. But note that, it’s also possible to find a carrier that underwrites a general liability for rock climbing facilities with a per occurrence limit of $3 million-$5 million.
Note that the general liability policy for climbing wall facilities offers abuse and molestation coverage, participant accident coverage, and non-owned/hired auto coverage as optional policies.
Accident medical coverage works in tandem with general liability insurance. This covers injuries and dismemberment. It provides $5,000-$25,000 coverage for medical expenses. In case of death, accident medical coverage gives a $5,000 cash as compensation for funeral costs.
Participant accident coverage kicks in when a participant sustains injuries during a rock climbing event hosted by the policyholder’s rock climbing facility.
Excess liability insurance for rock climbing facilities supplement the limits of general liability insurance. It provides $1 million-$10 million additional layer of coverage.
As for the final inclusion, commercial property insurance, this can be used to cover repair or reconstruction costs in case the rock climbing structure and the facility itself is damaged by theft, fire, lightning, and other covered perils.
Soccer field insurance is a specialized protection for football facilities. Inclusions are general liability insurance, workers compensation insurance, commercial property insurance, professional liability insurance, and participant accident coverage. The general liability insurance for soccer fields has a $2 million-$5 million per occurrence limit. Limits can be customized to meet the requirements of soccer sports events.
So how much does insurance cost for a sports facility? On average, a $1 million general liability policy costs $25 per month or $300 per year. Note that this is just an estimate. Your actual rates can be cheaper or more expensive.
The reason why there’s no fixed rate for sports facility insurance cost is because there are a lot of factors to consider such as building size, location, claims history, business history, types of sports activities, and more.
Your choice of carriers also affects how much premiums will cost. That said, here’s a table showing the rates of the best sports facility insurance companies:
|Cost per Month||Cost per Year||Best for|
|NEXT||$20||$240||General liability insurance for sports facilities with custom dedicated limits|
|CoverWallet||$23||$276||Sports facility insurance quotes comparison online|
|Tivly||$25||$300||Comparing sports facility insurance quotes over the phone|
|Chubb||$35||$414.12||Sports facilities of all sizes|
|US Club||$36||$432||Soccer teams with their own sports facilities|
|USASA||$38||$456||Quick claims filing|
Always compare quotes before getting insured. Comparing quotes allows you to see which company offers comprehensive coverage at a reasonable price. Click the “Get Quotes” button on this page to start.
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Here are the best insurance companies for sports facilities. Read to know their pros, cons, and average pricing for a $1 million general liability insurance.
Bundle policies and get a 10% discount
Live certificate of insurance
General liability insurance has custom dedicated limits
Commercial property insurance only provides $25,000 coverage
NEXT sports facility insurance is great if you’re looking for a general liability policy with custom limits.
This company’s general liability insurance can have a $500,000 limit or $1 million limit. Also, the language of professional liability insurance can be added to its terms. Other business insurance products from NEXT are commercial property and workers compensation insurance.
Work with NEXT because it gives an online certificate of insurance you can send as a text message, social media post, or email through its mobile app. Also, this company provides a 10% discount if you buy two or more policies.
Best for: General liability insurance for sports facilities with custom dedicated limits
Average cost: $20 per month
Our rating: 10/10
Get an online quote
Unlimited online certificates of insurance
Doesn’t underwrite the business insurance policies it sells
CoverWallet covers recreational sports facilities as well as the sports facilities owned by sports clubs. Policies available are general liability insurance, workers compensation insurance, commercial auto insurance, directors and officers liability insurance, and professional liability insurance.
Note that CoverWallet’s general liability insurance can be added with terrorism coverage and hired/non-owned auto liability coverage.
By the way, CoverWallet has an online quotes comparison platform you can use to find insurance companies underwriting sports facility insurance plans. We must mention that the platform allows you to buy the coverage immediately without visiting the underwriter’s website or calling its agents.
Best for: Sports facility insurance quotes comparison online
Average cost: $23 per month
Our rating: 10/10
Compare quotes over the phone
Helps you find other carriers that can provide tailored coverage
You have to call to know if your sports facility can be covered
You have to call Tivly (formerly CommercialInsurance.NET) to know if your sports facility can be covered. Note that if the company approves your application, policies available are general liability, workers compensation, commercial auto, commercial property, and more.
What you’ll like about Tivly is that if it can’t provide coverage, it will take you to other carriers. That said, this company saves you from the trouble of searching.
Call Tivly now to compare quotes over the phone.
Best for: Comparing sports facility insurance quotes over the phone
Average cost: $25 per month
Our rating: 10/10
Covers sports facilities of all sizes
Offers reinsurance services
Provides coverage for expensive sports facilities
You need to work closely with an agent to get an estimate of your rates
Chubb has a sports leisure and entertainment insurance plan. And so, this insurance company can still provide protection even though it doesn’t sell any coverage officially called sports facility insurance.
Policies you can get from its tailored coverage are public liability, product liability, employer’s liability, commercial property, business interruption, and cyber liability insurance. There’s also personal injury coverage available.
Work with Chubb because it has an online claims center where you can file and track a claim. You can also access claims resources. Note that Chubb categorizes the claims of its policyholders so that they can be processed quickly.
Best for: Sports facilities of all sizes
Average cost: $35 per month
Our rating: 8/10
Generous coverage for soccer teams having sports facilities
You need to become a member before getting insured
The US club provides tailored coverage for soccer sports facilities. Note that this isn’t an insurance company but an organization that provides insurance with the help of a partner. Another thing to mention is that it doesn’t really cover a sports facility. Coverage is actually offered to the soccer team owning it.
The US club provides sports travel insurance, personal accident insurance, general liability insurance, and workers compensation insurance to soccer teams who own and manage their soccer facilities.
Best for: Soccer teams with their own sports facilities
Average cost: $36 per month
Our rating: 7/10
Has a resource center where you can download documents that helps you understand your insurance policy and file a claim quickly
Doesn’t offer a lot of business insurance products
Similar to US Club, USASA isn’t an insurance company but an organization providing tailored coverage for soccer teams who own sports facilities. It only offers two types of business insurance- general liability and personal accident. Nonetheless, we suggest you check USASA out because it offers a seamless claims filing process.
Best for: Quick claims filing
Average cost: $38 per month
Our rating: 6/10
Lonnie Bell Insuranker
Policy Type: Business Insurance
Company name: Employers Insurance
Use anyone except Employers. Period. They are non-transparent and shameful. After I complained long enough to warrant a call from a supervisor, the supervisor called back from a PRIVATE NUMBER (no caller ID), left a message that they are not reversing their decision (without any communication with me), and failed to leave a phone number for me to call back. She was hiding! They also fact find via email and phone calls, which is terrific for speed and communication. However, after setting a precedence of email or phone calls, they send time sensitive information via email, without any heads up... they are hoping you miss it and forfeit via expiration. Evil policies. Go elsewhere.
This place is an absolute joke of a company and should be ashamed of the way they conduct business. I was hurt on the job at the end of July and it took them just shy of 7 weeks to issue out a paycheck to me. Yes the amount was back dated but still. Not many have the luxury of not receiving a paycheck for almost 2 months. To top it all off, the original adjuster marked me down for the wrong state which caused a problem from the get go, I've had 3 different adjusters now since each one can't seem to figure out the simplicity of my claim. All my paperwork which includes, my job, house, and drs visits all are from the same state and city but yet some how I have been filed under a completely different state 1500 miles away. They do not answer your phone calls or emails no matter how many you leave. I've had to escalate my frustrations to the supervisors of each of these individuals in order to even get some kind of response. I've had more communication and information given to me about my claim from the customer service representatives then the actual adjusters.......... please tell me how that works?! A serious overhaul needs to happen here in order to serve your clients the way they deserve to be taken care of. 10/10 do not recommend this company to a single soul on earth
I have never had the displeasure of working with a more incompetent and disrespectful person in my life. I’m an injured worker and the adjuster that was assigned to my case was named Carrie Furgeson. In the past 6 weeks that I’ve been injured and out of work I have only been able to get ahold of her twice, not for lack of trying. I have left countless voicemails, countless emails, and she ignores them all. When I am finally able to get ahold of her I’m greeted with terrible customer service. She is rude, she talks over me and I’m hardly able to get a word in edgewise. She spelled my name wrong on my documents even after I spelled it for her properly countless times, this caused a whole new issue with my bank. I have bill collectors from the hospital calling me demanding payment and Carrie Furgeson won’t do a single thing to help, or to get them paid. All of my documentation is in Colorado, my job is in Colorado, my address is in Colorado, all my Dr offices and appointments have been in Colorado and Carrie still managed to hold my claim because she wasn’t sure what state she needed to file it under. It’s been 6 weeks since my Injury and my company still hasn’t received the wage paperwork to fill out so they can get me my correct wages. When she’s not ignoring me she’s answering my questions with “I don’t know” well I don’t know how she got this job, because apparently she doesn’t know anything about it. She is a disgusting morose individual inside and out and I genuinely wish her the worst in all of her future endeavors. I highly recommend you don’t use this company. Please if you are a business owner and your looking into this company please don’t use them. I’m sure they have the cheapest payment and that’s why companies use them in the first place, but you will be doing your employees a grave disservice by forcing them to venture into this absolute dumpster fire of a company. I would rate 0/5 if possible but 1 was the lowest I was allowed.
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
As long as they cover your line of business, you're literally covered! best rates, best coverage, best online experience, best professionals, can't be happier that I chose them!