Sports facilities require a reliable Family Entertainment Center (FEC) insurance policy to ensure they are protected financially. In this review, we take a close look at the role of FEC insurance for sports facilities. We also highlight the range of insurance coverage options you can choose for your sports facility.
What Is Family Entertainment Center (FEC) Insurance?
Family Entertainment Center (FEC) Insurance is a business insurance policy for indoor and outdoor sports facilities, arcades, and other forms of family entertainment centers. It is a broad type of insurance; the specific coverage depends on how the business owner personalizes their policy. Generally, a policy includes liability coverage, commercial property insurance, equipment breakdown insurance, and worker’s compensation.
Sports facilities typically include a range of services and host a variety of events. This includes hosting events for baseball, basketball, football, wrestling, weightlifting, swimming, tennis, and more. For each event, sports facility owners may offer concessions (including the sale or allowance for alcohol), the use of facilities and amenities (i.e. batting cages for baseball tournaments), and more.
What Coverage Options Are Included With FEC Insurance for Sports Facilities?
Sports facilities carry unique risks, and no two facilities are the same. Due to this, it is important to personalize your policy according to what your business needs the most. Below is a detailed description of the more common coverage options that are included with FEC insurance for sports facilities.
General Liability Insurance
General liability insurance covers your sports facilities financially from claims of liability. This means costs associated with claims that you (or your facility) caused or contributed to bodily injury or property damage.
For instance, a player may claim a hole in your sports facility caused them to tear a ligament in their knee during a sporting event, in which case they may try to hold you financially liable for the medical costs. In instances such as this, your general liability insurance may cover the associated legal costs (lawyer fees, settlement costs, etc.) and the medical costs if you are deemed liable.
Professional Liability Insurance
Professional liability insurance goes beyond general liability coverage and helps cover you financially against claims that your professional advice or services caused harm to someone else. For example, let’s say your sports facility offers training sessions.
A member may claim that they were pushed too hard during the training session and that led to their injury. In this case, the member may attempt to hold you financially liable for medical costs, missed wages, etc. Your professional liability insurance would help cover legal costs, medical payments, and other fees associated with the claim.
Commercial Property Insurance
Commercial property insurance coverage is important to add to your FEC insurance policy if you own and operate expensive sports facilities. Specifically, this coverage option protects you financially if your commercial property is damaged or destroyed by unexpected disasters, vandalism, theft, fire, and storms.
Otherwise, you could be financially liable for any damage that occurs. We particularly recommend commercial property insurance for sports facilities that use lighting, sound systems, and other electronic equipment during sporting events as this raises the risk of fires and other perils.
Worker’s Compensation Insurance
Worker’s compensation insurance is a requirement for sports facilities in certain states. Sports trainers, coaches, and athletes are usually at greater risk of injury while on the job. A worker’s compensation insurance policy would cover many of the costs associated with workplace injuries that your employees endure. Specifically, it helps cover costs associated with medical payments, lost wages, and rehabilitation.
Liquor Liability Insurance
Liquor liability insurance is important for sports facility owners who allow for the consumption of alcohol. This could be either in the form of selling the alcohol directly to the consumer or allowing them to bring their own alcohol to your events and/or facilities.
Specifically, liquor liability insurance protects policyholders from claims of liability related to the consumption of alcohol. For example, if someone were injured by a drunken fan at a ball game, then they may sue your facility. In this case, liquor liability insurance would cover many (if not all) of the associated costs.
Moreover, there are two types of liquor insurance — host liquor liability and liquor liability insurance. Host liquor liability insurance is typically recommended for sports facilities who do not sell alcohol but allow for its consumption. Liquor liability is recommended if the sports facility sells or serves alcohol.
Equipment Breakdown Insurance
Sports facilities often rely upon their equipment. If the equipment breaks down early, then it can lead to large unexpected costs for the business. Equipment breakdown insurance protects the business owner from the costs associated with equipment breakdown.
Personalize Your FEC Insurance Policy With Pro Insurance Group
Are you in need of a Family Entertainment Center insurance policy? If so, then contact Pro Insurance Group today. We can personalize your policy according to your needs and coverage preferences and provide you with a free policy estimate.