Sports, Arts, Entertainment, and Recreation

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What Sports, Arts, Entertainment & Recreation Insurance Is All About:

The sports, arts, and recreation industries include anyone who specializes in recreational activities. Sports, for example, are usually defined as any physical activity that is both competitive and physical. However, the definition of what constitutes a sport continues to expand, now including such things as competitive eating and even competitive gaming. Those who work as professionals in this field can be anything from the athletes who perform the sport to managers to those who work own and operate sports-related facilities.

Meanwhile, the arts encompass a vast number of artistic endeavors. Painting landscapes or sculpting may easily be considered art. Professionals in this field often work alone, although many art projects can involve groups of artists working together. Often artists will coordinate with engineers and architects to create public displays, as commissioned by local governments or private businesses. Many professionals in this industry also own and operate their studios or galleries, seeing a lot of foot traffic on a daily basis and selling artwork directly to customers.

Finally, recreational activities are anything that people can enjoy outside of work. While artists and athletes may enjoy their work, recreational facilities exist for people to relax. Such facilities, such as pools, gyms, and recreational centers, are often heavily utilized. Cities, in particular, will often have several forms of recreational centers, employing staff specializing in different types of recreation.

Sports, arts, and recreation have never been more popular. From table tennis to basketball, sports and recreational activities are so varied that there’s something for everyone. However, no activity is without its risks. Even playing a simple game of table tennis can lead to injuries or result in something getting broken. Those who dedicate their lives to sports, arts and recreation are more likely to require insurance related to the risks involved.

Who Needs Insurance?

Insurance policies come in handy if you own one of the following types of businesses:

  • Performing Arts Company
  • Spectator Sports
  • Promoter of Performing Arts, Sports, and Similar Events
  • Agents and Managers for Artists, Athletes, Entertainers, and Other Public Figures
  • Independent Artists, Writers, and Performers
  • Museum, Historic Site or Similar Institution
  • Amusement Parks and Arcades
  • Gambling Industries
  • Other Amusement and Recreation Industries

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CoverWallet's Insurance Checklist , you'll find a list of insurance types needed for your specific business or industry.

What Risks Are Associated With Sports, Arts, Entertainment & Recreation?

Depending on the activity, your risks could vary dramatically. For those who have made sports and recreation a way of life, risks can include personal injuries, injuries to others, property damage, loss of property or theft. Most of those employed in sports or recreational facilities are well trained in various emergency procedures. These types of facilities often utilize heavy and sometimes dangerous equipment.

Those who own gyms, for example, must be constantly aware of the overall condition of the equipment, and must keep a steady eye on individuals using the facilities. Often, people will come in who simply do not know how to use the workout equipment safely, increasing their risk of injuries. If an injury does occur in a sports or recreational facility due to equipment error, or even user fault, the facility can be held liable. A General Liability Insurance policy can cover this type of issue, and is likely the type of insurance most professionals in this industry may want to purchase.

Lost or stolen property is also one of the largest concerns for individuals within this industry as well. The risk of losing equipment is high, as most equipment related to the sports, arts and recreation industry can be extremely expensive to purchase. This is particularly true for artist and art studios. The theft of valuable works of art can be a lucrative business for thieves. It can be devastating for any business, especially an art studio or business. For any business within this industry, this particular risk is mitigated through the purchase of Commercial Property Insurance. This insurance type provides protection for business properties and helps recover the cost of the insured property.

The purchase of insurance for sports, arts and recreation professionals is necessary. While it’s easy to assume that risks are minimal, leaving your business exposed is a situation that is best avoided. In many cases, businesses in this industry will be legally required to own at least some forms of insurance, even if it’s just a Workers Compensation policy. However, those who make their way in this industry should investigate the most common risks associated with their specific segment within the industry, and discover insurance types designed for those specific risks.

How Much Does Sports, Arts, Entertainment & Recreation Insurance Cost?

With so many different types of businesses in this industry, premium costs will vary widely depending on the nature of yours. As with most policies, your rates will likely take into account your location, size, previous claims and any inherent risks associated with your line of work.

Do you need more coverage?

Liquor Liability
Any business that sells or serves alcoholic beverages can be held liable for damages or injuries caused by an overserved patron. This can include damages that result from fights, careless behavior or automobile accidents. While it may seem unfair to hold the business responsible for the acts of an unruly and intoxicated patron, establishments are held liable and can be sued for large sums of money. Fortunately, with a good Liquor Liability policy, businesses are able to protect themselves should things get out of control. These policies are sometimes bundled with a General Liability policy, but are most often purchased as standalone coverage.
Crime
This type of insurance helps you cover the losses resulting from criminal acts such as robbery, burglary and other forms of theft. Many businesses choose Crime Insurance policies that allow them to file claims for internal theft or other offenses with the potential to cause financial problems.
Surety Bond
This is a promise by a surety to pay the obligee an agreed upon amount if the principal fails to meet an obligation that was set forth by the obligee. This bond holds the principal liable for losses should they fail to fulfil their obligations.
Fiduciary Bond
A Fiduciary Bond and a Fiduciary Liability policy are two separate things, but they also work together to protect your business’s retirement plan or pension fund. The bond protects the plan from losses due to dishonesty or fraud while the liability coverage provides protection in the case of breach of fiduciary duty on the part of the plan managers.
Special Events
This insurance will provide you with coverage if you are throwing a special event. Special Events Insurance will cover claims of bodily injury, property damage and provides coverage for any contractors you hire.

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