What are the most prominent insurance risks for clubs?
Claims always happen when you least expect it, and can cast your club into financial turmoil without an experience broker behind you.
Most people believe the footfall and set-up of your club will determine the likelihood of a claim occurring. However at Club Insure, we understand that accidents and floods are not discriminatory, and can happen to any club or community.
Unfortunately, physical injuries, alcohol-induced violence, elderly patrons, stress and criminal conduct are at a higher likelihood at a sports club or social clubs than most other businesses outside of the leisure sector. Club committees need to be strict and proactive in their risk management, as well as knowledgeable of their obligations toward due diligence and staff wellbeing.
Club Insure has over 25 years’ experience insuring sports clubs and social clubs. Our in-house claims team have handled a wide range of claims over the decades. We have identified that some risks are far more prominent in their likelihood and possible disruption to the business than others.
Below we have listed the most prominent risks impacting sports clubs. The following risks span across all areas of the business, and yet would be covered by a comprehensive Club Insure insurance policy.
How do we determine the prominence of a risk?
When determining prominence, insurance professionals measure risks by two factors. First is likelihood. Their probability to occur, meaning how often they might happen or how close they are to being realised. Second is Severity. Their impact, deemed by their costliness and disruption were they to occur.
These two degrees of measurement are included within a NDML risk assessment, known as ‘S x L = R’. To help analyse a risk matrix, risk assessment users should indicate the scale of the severity and likelihood, approximating between 1 and 5, as well as provide the context for the risk, such as the location or industry. This ultimately determines the ‘R’, the risk level, ranked as low medium or high.
Efficiently and accurately weighing up risk levels is vital to appropriately handling risks. Proving you have identified risk, understood the likelihood and have done your due diligence, is key for claims defensibility were the worst to happen. Claims defensibility is key to the financial survival of pubs and bars.
Go to Club Insure’s Risk Management page
The most likely risks at a club which could result in a claim:
Most common Public Liability Risks for Bars and Pubs:
- Wet floors leading to slips
- Wet or uneven stairs leading to falls
- Trailing cables causing hazards
- Equipment failures such as goalposts, cricket bats or gym equipment
- Physical fights leading to injury
- Illicit substance issues
How can public liability risks be managed?
Train staff in best practice and proper procedures, should they witness spillages and broken glass they must know how to act. Incidents need to be recorded in an accident book. Have a dedicated member record and assess the quality of sports equipment. Responsible members of staff should help identify aggressive, drunk or disorderly patrons, helping to prevent fights before they occur. CCTV coverage which surveils stairwells and halls will provide excellent defensibility were a claim to arise.
Common Employers’ Liability Risks for Bars and Pubs:
- Wet and greasy floors behind the bar lead to staff injuries
- Manual handling injuries caused by heavy lifting
- Rowdy customers can lead to stress, assault or violence
- Unfair dismissal, negligence or supervision lapses
How can employers’ liability risks be managed?
All businesses have a duty of care to protect their staff, it is a legal obligation. Training staff in best practice is essential, whether that’s for manual handling, safeguarding against burns, or managing spillages behind the bar. Due diligence is important, whether that’s training for volunteers or retraining longtime employees. Committees need to have procedures in place to bar disruptive customers from the premises. Leadership needs to understand how to properly handle staff stress and leave.
Unfair dismissal, missed payments and claims of negligence are covered by Directors and Officer’s insurance. D&O insurance protects against claims brought against individuals in leadership, including legal expenses and compensation.
Prominent Buildings and Contents Risks for Bars and Pubs:
- Structural fires due to old equipment
- Flood and storm risks
- PAT Testing
- Theft of equipment and assets
How can pubs and bars manage the most common buildings risks?
Proper training around kitchen equipment is essential, including fire safety awareness. Testing of equipment and facilities should be carried out every six months unless specified. Floods and storms can impact any business, especially those with a flood risk. Business Interruption Cover is critical to reduce the financial impact of a temporary closure. Access and security will need a review to prevent theft. CCTV can help defensibility around intruders.
The best advice: Use a Specialist Club Insurance Broker
Sports and social clubs can use a specialist broker to arrange their liability insurance and protect against the financial repercussions of a claim. Club Insure has been working with sports and social clubs for over 25 years, so we recognise the risks your club or community venue might face.
By getting to know you, we gain a deeper understanding of your individual circumstances and the cover you’ll need to protect your organisation and its people. We will visit your club and provide guidance on the individual risks you may face.
Contact us for a non-obligatory quote today