THE ROLE OF THE LAWYERS IN SPORTS INSURANCE POLICIES PART 2 - PICKNSTAKE.COM

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Tuesday, 13 November 2018

THE ROLE OF THE LAWYERS IN SPORTS INSURANCE POLICIES PART 2

Authored by: Joshua Charalambous, Steven Aitken

Event cancellation/ event interruption insurance

Events-related policies could cover you for a number of losses sustained as a result of cancellation or interruption, but usually include lost advertising or broadcasting revenue; lost ticket sales; reimbursement of tickets; costs of rescheduling a postponed or interrupted event; and renting or leasing a new venue. Events policies can also indemnify policyholders for damages claims by third parties. Typically claims result from personal injury/ property damage at the insured events.
Some risks might be excluded from a generic policy so it is crucial, if you are involved in placing insurance within your business, that you sit down with your broker and discuss the various causes of cancellation that might be pertinent. In addition, where umbrella event insurance policies are in place, it is always worth taking the time to periodically review the full schedule of events covered to ensure that a new event falls within the scope of the policy.



A prime example involves the Old Trafford bomb scare causing Manchester United to postpone its final Premier League match of the 2015/2016 season.4 Old Trafford was evacuated before kick-off due to the discovery of a suspect package. Old Trafford has a capacity of over 75,000 and had a fantastic atmosphere in the sunshine before kick-off. Brands had spent millions of pounds on TV, shirt, in-stadium and collateral advertising to ensure they were in the spotlight at the Theatre of Dreams.
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Some estimate that the loss flowing from the incident was £3m although it is unclear how that estimate was reached and it could easily be higher.5 The club will have incurred costs in evacuating the stadium; paying any contractual mechanisms for the postponement/ abandonment of a game; and reimbursing those ticketholders who could not make the re-arranged game. With hindsight comes a more focused picture of the risk associated with hosting each Premier League match, of which there are 380 across the country each season.

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