Hunton Insurance Recovery Blog

NCAA March Madness tournaments are among the most anticipated and exciting events in American sports, drawing millions of viewers and generating significant economic activity. But the massive popularity of the tournaments comes with risks that can affect participants, venues, sponsors, and fans. From injuries to property damage and event-related cancellations, this post explores the potential risks and the insurance products available to mitigate the risks associated with major sporting events, concerts, or festivals.

Common Risks

Injury Risks: March Madness, as a high-stakes basketball tournament, inherently involves physical risks for players. Injuries to athletes, whether from collisions, falls, or overexertion, can have serious consequences for the individuals involved and the tournament’s operations.

Liability Claims: Like the athletes, fans and spectators attending the tournament may face also accidents or injuries while at the venue. Additionally, third-party vendors providing services or merchandise at the event could face liability claims if their products or services result in harm.

Event Cancellations or Delays: Unexpected events, such as natural disasters, power outages, or public health emergencies, can cause cancellations or delays in the tournament. These disruptions may lead to financial losses for event organizers, sponsors, and other stakeholders.

Property Damage: The venues hosting the tournament, including arenas and surrounding areas, face potential risks of property damage above and beyond those experienced in their normal operations. Whether from crowd surges, accidents, or other unforeseen incidents, the costs of repairs or compensation can be significant.

Insurance Coverage Options

Several insurance products can manage the risks associated with March Madness and similar events.

Sports Accident Insurance: Under NCAA rules, athletes must have a basic health and accident plan. Coverage can be provided through the school, a parent or guardian’s policy, or the student-athletes’ own policy. The NCAA also provides an insurance program that covers student-athletes who are catastrophically injured while participating in a covered intercollegiate athletic activity. Schools or athletes can purchase more comprehensive programs designed specifically for athletes that also cover potential loss of income if the athlete is unable to play. Sports accident coverage is essential for protecting players during high-risk events, such as NCAA basketball tournaments, and protecting current and future earnings.

General Liability Insurance: General liability insurance covers claims related to injuries or accidents occurring on the premises. For example, general liability insurance may cover injuries to spectators caused by falling objects or slip and falls. Event organizers, sponsors, and venue owners rely on this coverage to protect against legal and medical costs.

Event Cancellation Insurance: Event cancellation insurance helps cover financial losses resulting from event cancellations or delays due to unforeseen circumstances, such as natural disasters or other emergencies. This coverage is particularly important for organizers and sponsors, as it protects their investment against the risk of event cancellation due to circumstances beyond their control. Depending on the specific policy, event cancellation insurance may also cover enforced reduced attendance at the insured event, which covers loss the insured incurs due to unforeseeable circumstances that result in attendance falling below budgeted expectations. For example, if a severe weather event forces a game relocation or results in a reduced crowd due to travel restrictions, event cancellation insurance may compensate organizers for lost revenue.

Property Insurance: Property insurance covers any damage that occurs to the event venue or other associated facilities. It can cover physical damage to the building, as well as the equipment, signage, and other property used during the event. For example, property insurance may cover damage to signs, light poles, or windows caused by students celebrating a tournament win.

Conclusion

While March Madness is thrilling, the risks associated with the tournament are significant, requiring careful planning and protection. Insurance coverage tailored to the unique needs of a major sporting or music event can help mitigate these risks, ensuring that participants, organizers, and fans are protected. By understanding and securing appropriate insurance products, all those involved in the tournament can focus on what really matters—celebrating the excitement of the game.