Broker warns that sports clubs face closure over rise in insurance claims
Sports clubs face potential closure this year on foot of increased difficulties in getting insurance, according to one of the country's leading brokers.
Amanda Harton, director at JLT, said that in the last 12 months a number of insurance providers have effectively walked away from providing insurance to community and sporting organisations because of the frequency and severity of claims.
"Previously, people mightn't have claimed against their community organisation or church organisation or their sports club, but there's been a bit of a shift where people only see the insurance company," Harton told the Sunday Independent.
"They think 'this organisation has insurance, I'll make a claim, I'll get my payment', and they forget about the fact that it has a negative impact on the organisation. What then happens after that is that the club or the community organisation will face higher insurance premiums, more restrictive cover, or they'll be unable to get cover at a reasonable cost, or even at all.
"This effectively means that over the next while, if this continues, we'll see more and more situations where clubs either have to restrict their activities or close down altogether."
Harton said JLT encountered a situation where a sports club was having severe difficulty getting cover after a number of claims were made. A local insurance company eventually decided to step in as they felt it would damage the community if the club had to close.
Harton also said there has also been an increase in the number of claims made for injuries received while participating in sporting activities.
Sunday Indo Business