CHOICE is looking into the issue of liability cover included in membership fees in amateur sports clubs and associations around Australia - specifically the issue of whether club members are covered for liability in the event they cause injury to another member, or member-to-member cover. We’re interested in hearing from anyone who’s had experience in this area.
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One of our family members does Satori Karate, whereby annual membership levies include insurance coverage. We fortunately haven’t had the need to look into what the insurance covers. Might now your have raised it. Cover documentation is available on the Karate Australia website:
This is the limit of our experience and knowledge.
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Many community (not for profit) organisations also have liability cover for members. They may have members involved in organised activities in the general community, or within club/member premises. Interaction with the public in both situations, and just being in a public environment also present risks.
Think Men’s Sheds, LandCare groups, or just the local bush walking club. I’m involved regularly with 2 community NFP’s. For organised activities or attendance one is most often required to sign on - insurance coverage the reason goven?
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I was a Triathlon Sports Coach, and hence a coach in the associated disciplines plus Strength and Conditioning.
So, I looked into the insurance to see if I was better off getting direct insurance, as a coach, or using the insurance of the relevant sports associations. I was surprised to discover that all the sports related insurance, ends up at the same point, a UK underwriter, with a single policy. Each association, using the onion principle then adds an additional layer to cater, not so much for the insurance, but rather the policy of the association. So, if the association wants potential members to think that insurance is benefit a carrot, the coverage is different to one that uses it as a stick. But at the underlying level, the insurance is no different. This seemed to be for every Australian sport. So I basically had several policies covering me for the same insurance company, Lloyd’s of London. But each with different situations I was insured to cover, despite the underlying policy having no such restrictions. It is very difficult to find out just how much risk is involved in sport, ie, number and size of claims. But, In my years of coaching, I didn’t hear of any coach being claimed against, or any member. Even if there were claims, I don’t think the coverage is actually as good as its made out to be. Eg $20m Public liability - but what the claim is for, is in the small print including the maximum, eg, $50k for a lost eye, might cover the health bills, but nowhere near the compensation - hence goodbye house! Lloyd’s of London don’t sell their insurance direct, it goes through insurance companies and then agents. So it looks like it is different, but conclusion is its is just the packaging. Things may have changed, I’m no longer coaching - COVID killed off the role for many of us.
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Many thanks for this information. Very helpful, and in line with with what we’re discovering in our investigation.
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