Insurance
Insurance summary
ARU National Insurance Scheme
What should you know in relation to your insurance policy?
Other types of insurances
Gow-Gates Insurance Brokers
Insurance Summary
In the ever-increasing world of litigation, the requirement for sporting Clubs to have appropriate insurance has become an essential part of survival. Insurance is a common tool of risk management in that it seeks to transfer the risk that may exist within a sporting Club to another party (i.e. the insurer).
It is essential that sporting Clubs protect both their members and assets and a common risk management tool to achieve this is insurance. Furthermore, the Club should also investigate their own risk management strategies to minimise their exposure to the risks associated with sporting organisations. This is discussed further in Risk Management.
ARU National Insurance Scheme
The ARU Sports Injury and Liability Insurance Scheme provides a basic level of insurance for players, members and officials associated with Club Rugby. All Clubs affiliated with the ARU and/or the various State Unions and their affiliated unions, are automatically covered under the plan from 1 March, for a period of 12 months.
It is compulsory for all teams competing in competitions managed by the ARU and/or State Unions, to participate in the ARU national insurance scheme. Note: All participants (players, coaches, officials, volunteers) must be registered with the ARU in order to obtain coverage.
A summary of the items of coverage provided under this policy are outlined below. *
Sports Public and Products Liability
This policy is broken into two sections:
Public Liability - Under this section your Club and it's Insured Persons are insured for legal liability in respect of bodily injury or property damage arising during the period of insurance and caused by an occurrence in connection with rugby.
Under the plan your Club is covered for Public Liability insurance. A Certificate of Currency is forwarded to each Club annually noting the period of insurance and amount insured that can be supplied to parties requiring the same.
Products Liability - This section provides coverage for legal liability in respect of bodily injury or property damage arising during the period of insurance and caused by products sold or supplied by you.
Sports Professional Indemnity
This policy provides coverage for the Insured's legal liability for breach of professional duty in the sport by reason of an act, error or omission committed by or on behalf of the Insured.
Sports Injury
This policy is applicable to individuals within sporting Clubs such as sporting participants, officials and volunteers alike. It provides cover in the form of:
a lump sum to dependants in the event of accidental death or permanent disability,
weekly benefits as a protection against loss of income if a person is unable to work, home help allowance, student assistance benefits, and parents inconvenience allowance, in a case where a child is injured and
reimbursement of a percentage of non-Medicare medical benefits. (Non-Medicare medical expenses are those medical expenses that are not subject to any full or partial Medicare rebate).
* This is a summary only of the main points of coverage. Please refer to the policy document for the complete policy terms and conditions.
Click here for a full summary of coverage provided under the ARU Sports Injury and Liability Insurance Scheme.
What should you know in relation to your insurance policy?
It is recommended that the following issues be understood in relation to your policy:
- What is covered?
- What is excluded?
- Who is covered under the policy?
- Who is excluded under the policy?
- When are you covered?
- What is the period of coverage?
- Where are you covered?
- What is the level of cover?
- Is this the amount for an individual claim or total claims over the policy period?
- What is the excess you will have to pay in the event of a claim being made against that policy?
Other types of insurances
Other insurances are available in addition to the coverage provided under the ARU Sports Injury and Liability Insurance Scheme. The Club should assess what additional coverage is required to minimise the risk on both their members and assets. It must be stressed that the nature of the insurance cover required by your Club will depend on your individual circumstances.
Directors and officers liability insurance/associations liability insurance
Where a sporting Club is incorporated, it is a legal entity and the sporting Club's liability will be limited to the extent of its surplus assets and any further contribution required by the members in accordance with its constitution. The purpose of insurance in this context is to protect the surplus assets of the Club and also to protect the personal assets of the office bearers in the case where they may be found personally liable.
This form of insurance is designed for committee members and directors of sporting Clubs who can be sued by their own Clubs/members for acts of negligence (i.e. it is alleged that they have breached the duty of care owed to their Club). This type of insurance policy is of particular importance where sporting Clubs have large financial turnovers.
Building insurance
This type of policy covers buildings, such as Club premises owned by a sporting Club. Building insurance polices, commonly include protection against risks such as fire, lightening, riot or civil commotion, acts of malicious persons, impact by aircraft, vehicles or animals and storm or tempest.
Property contents insurance
This form of insurance policy generally covers contents of the building utilised by a sporting Club. For example, the equipment of a sporting Club (eg: Clubhouse, scrummage machine, tackles suits/hit shields, etc), all merchandise held on the premises etc. Such policies commonly cover theft or burglary (or attempt) and accidental breakage of glass, washbasins etc. Such policies may include cover for cash stolen (usually limited to an amount and usually excluding money embezzled by employees).
Motor Vehicle Insurance
Any motor vehicle owned and operated by the Club will require insurance to protect its value and the value of the vehicle owned by another driver, in the case of an accident.
Fidelity insurance
This form of insurance provides protection to sporting Clubs against embezzlement by their employees.
Worker's compensation
If a sporting Club employs someone even on a casual basis, worker's compensation cover is required. This type of policy covers expenses such as wages and medical bills if a person is injured at work. Professional sports people can be subject to worker's compensation laws which vary from state to state. Volunteer workers are not employees and need to be covered under a policy for volunteer workers.
Occupational health and safety cover
Such cover is now available for employers, managers and others involved in sports activities. Sporting Clubs who pay groundsmen and cleaners are subject to the occupational health and safety laws in their state. Directors of sporting Clubs should remember occupational health and safety can be a personal criminal prosecution brought against them as individuals
Travel insurance
This type of policy generally provides cover to a sporting Club against risks arising during travel (for example, to an interstate or international competition) including losses arising from cancellation of flights, loss of baggage and personal contents, loss of equipment and personal injuries sustained during travel.
Gow-Gates Insurance Brokers
Should you have any enquires in relation to the ARU Sports Injury and Liability Insurance Scheme or additional insurances, contact the Australian Rugby Union's broker, Gow-Gates Insurance Brokers on (02) 8267 9999 or 1800 811 371.
