As a specialist sports insurance broker, we have been advising the leading international associations for many decades.
As well as providing ongoing advice to associations in managing risk, the coverage of large-scale events taking place around the world is an important area for our clients. HiSV supports the management and monitoring of risk with the agreed insurance requirements of member associations, service providers and commercial partners.
NATIONAL SPORTS ASSOCIATIONS
Part of our core business is advising national associations on their risk management.
HiSV is proud to count a number of national associations as clients. We design and place the insurance programmes for these organisations, and as part of the continuous consulting process, the concepts and strategies are adjusted regularly.
Our core business includes consulting for state athletic associations, along with their affiliated organisations and members. From the beginning, we have developed and continued to refine a large variety of insurance solutions for them. These solutions are customised to meet these organisations’ particular requirements. We are proud that the majority of state athletic associations have chosen our solutions and advice.
Besides the state athletic associations and the national associations, we also advise regionally oriented professional associations that are part of the national associations.
The structure of sports clubs and the incorporated companies in the sports industry, vary hugely.
The structure of sports clubs and the incorporated companies in the sports industry vary hugely.
These clients can be anything from non-professional sports (such as a local sports club operating several departments) to the professional clubs in the various football leagues.
The consulting concepts and the strategy depend on the complexity of the risk and size of the client’s business.
Fixed assets, like the stadium, club premises and roster of contract players, usually represent essential assets on the balance sheet. The contracted players are entered as intangible assets on the balance sheet based on their purchase costs (in particular the “transfer fee”).
Players from the youth talent pool or players acquired without the payment of a transfer fee represent assets. Managing such assets requires a comprehensive risk and insurance programme, all part of the club’s wider strategy.
Permanent total disability or death of a player can place a heavy burden on the financial results of the club.
There are different levels of coverage available. The solutions range from catastrophe coverage to so-called market value insurance.
SPORTS EVENT ORGANISERS
A number of parties are involved in hosting a sporting event. As a result, each party in the value chain assumes part of the risk of the event.
A number of parties are involved in hosting a sporting event. A number of contracts are agreed prior to an event (e.g. TV and marketing) and on the execution of the event (hosting agreement, stadium agreement, contracts of work and services with subcontractors, etc.)
Ultimately each party in the value chain takes the risks of the event, which includes everyone from the organiser to the service providers on the ground.
In marketing the rights of sports events, companies have to manage their risks.
The host broadcaster of a sports event is exposed to both warranty as well as liability risks. If the television signal cannot be transmitted as agreed, there is the threat of significant claims by contractual partners.
It is important to note here that besides the installation of technical backups, it is critical to analyse the relevant contracts and structure the coverage accordingly.
SPORTS PRODUCTS MANUFACTURERS
Endorsement contracts often contain bonus payments for special achievements.
Many sports products manufacturers advertise by means of endorsement. The contracts often contain bonus payments for special achievements. Within the scope of these contractual agreements, the risk of an unusually good/above average performance must be budgeted for. Insurance solutions can also be used to cover this budget.
Likewise, non-participation of athletes in large events because of injury or sickness, can be disastrous for the sponsors, as the desired reach and intended profile of the event may not be achieved.
Sports sponsorship is an attractive advertising platform for companies, and these contracts are also tied to risk.
Sports sponsorship is an attractive advertising platform for companies due to the wide reach and the (predominantly) positive image of sporting achievement. Depending on the contractual make up, risks can arise that need to be insured.
Risk management for professional athletes must be a fundamental part of the personal coverage strategy.
Professional athletes earn their living playing competitive sport for a short period of time compared to people in most other careers. Risk and insurance management should take into account this short career, their marital status, cost of living, existing liabilities, property and other factors.
A fundamental part of insurance management is represented in the coverage of costs for medical treatment and rehabilitation.
Depending on the player’s contract, the risk of temporary catastrophic injury following an accident and/or illness must be covered. Otherwise, the professional athlete might incur financial losses because the continued payment of salary by the employer is limited for a fixed term (loss of income).
If a catastrophic injury then results from the temporary sports injury, which coincides with a premature end of the athlete’s career, the professional athlete must also rearrange his/her professional future besides managing the suffered financial loss. When devising and selecting an insurance policy, the athlete’s injury history and contract details as well as contract periods (employer, sponsors) must be considered.