Welcome to the British Institute of Club Management
Club Insurance
For further information or advice, please contact:-
The Route Organisation
2
Winmarleigh Street,
Warrington,
Cheshire
WA1 1NB
Tel:
Fax: 0845 217 1812
E-Mail info@routeorg.co.uk
The information contained in this article provides only a general overview of subjects covered, is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. Insureds should consult their insurance and legal advisors regarding specific coverage issues.
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Insurers are having to
meet claims arising from issues such as the ‘no win, no fee’ culture, the slip /
trip awards, the worst floods on record in the UK, riot damage, legal expenses
claims and the concept of the club officials being held personally responsible
for the club activities.
At the same time, they
are dealing with the challenges and costs of regulation and transparency issues.
Due to competition in the marketplace, premiums are at similar levels to 30
years ago.
So – similar premiums to
30 years ago but greater insurance risk exposure and costs – not a great mix for
insurers and there are always fears that premiums might increase.
With clubs struggling to
increase their turnover and revenue, many are looking at the other side of the
balance sheet and trying to achieve sensible economies in expenditure. However,
that has to happen in a planned way... not just cutting the staffing, stopping
the milk or getting a cheap insurance quote that may not give the protection
required! If an incident is not insured the repercussions on a club’s finances
could be severe.
The club insurance
industry though has to play its part and be consistent in its messages. They
need to look at ways of cutting out costs, to make the product affordable and
accessible. They also need to support initiatives that can help clubs to reduce
their levels of risk.
Insurance cover is a
necessary expenditure for clubs, as with all other businesses and organisations.
But the sector has some unique aspects that need to be understood by insurers,
to make certain that the protection provided is appropriate yet affordable.
As a starting point, the
insurance industry needs to recognise that the clubs sector is very wide and
varied, ranging from community clubs to country clubs, fitness clubs to working
men’s clubs. Insurers need to understand the differences between these in
respect of their insurance needs and offer premiums and cover accordingly.
My own experience of
this sector goes back over 30 years and during that time I have seen clubs face
some big changes and new issues. For example:
• Traditional working
men’s clubs have struggled to keep pace with the changes in leisure habits.
There has been an increase in ‘drinking at home’, coupled with more leisure
opportunities such as internet, DVDs, satellite TV etc.
• Incomes from gaming machines are reducing for many clubs.
• Many club members want more from their club, whatever its makeup
• Drink / driving penalties and healthier lifestyles are perhaps reducing
members’ desire to drink in clubs.
• Clubs used to have good price differentials compared to pubs and restaurants,
but this has reduced.
• There are tougher legislative issues for clubs to deal with.
And the change is
continuing. The current risk and insurance related topics that dominate the club
insurance industry today seem to be:
• The smoking ban.
• Employment claims... unfair dismissal, employee rights, harassment... all cost
money to defend.
• Some clubs paying less attention to maintenance and safety.