Cancellation or postponement of a college football game or entire season due to a catastrophic airplane or vehicle crash, or an epidemic such as hepatitis, could mean financial disaster for large schools where the entire athletic program depends on football gate receipts and television or radio revenue. International competition, touring track, tennis and soccer teams could be completely eliminated in the event of a tragic airplane crash. The coverage usually provided is for airline crash or accident involving a common carrier and epidemics. It applies on an "actual loss sustained" basis for any reduction in anticipated income as a result of scheduled games being completely cancelled. Gate receipts, television and radio revenue, advertising income from programs and sponsoring fees from outside organizations are examples of such income. Limit can apply on a "per-game" basis with an aggregate limit for the entire season.
What is Athletic Events Cancellation?
Athletic Events Cancellation Insurance is designed to protect against financial losses when sporting events are unexpectedly cancelled, postponed, or relocated due to unforeseen circumstances. These can include transportation risks such as chartered plane crashes, common carrier accidents, or health-related disruptions like epidemics. The policy typically reimburses the insured for actual financial losses based on revenues that would have been generated from the event.
Who Needs It
This type of insurance is commonly sought by colleges, universities, athletic conferences, and event organizers whose revenue heavily depends on live attendance, media rights, or sponsorships. Schools with large football programs or institutions hosting high-profile tournaments or bowl games are especially vulnerable to income loss from event disruption.
What It Typically Covers
Coverage usually includes:
- Loss of gate receipts from cancelled games
- Lost income from television and radio broadcasting contracts
- Sponsorship and advertising revenue losses
- Travel and accommodation costs due to cancellation
- Disruption caused by epidemics or transportation accidents
For example, if a college football team is unable to travel to an away game due to a team bus crash involving a common carrier, the loss of ticket revenue and media income may be reimbursed under the policy.
Common Exclusions or Limitations
Policies may exclude cancellations due to known risks at the time of policy issuance, such as pre-existing weather events or financial insolvency. Additionally, voluntary cancellations not mandated by public authorities or safety concerns may not be covered. Each policy has specific underwriting factors and exclusions, so reviewing terms carefully is important.
Factors That Influence Cost
Premiums are influenced by event size, expected revenue, number of scheduled games, and the inherent risk exposures, such as travel frequency, event location, and historical cancellation data. Institutions with higher commercial liability or transportation risks may pay more due to their exposure profile.
Proof of Insurance & Compliance
Some venues, sponsors, or governing bodies may require proof of cancellation coverage to ensure financial stability in the event of disruption. This documentation can also support internal risk management planning and compliance with contract requirements.
How to Get a Quote
To obtain coverage, institutions should work with a broker who specializes in sports and event insurance. Be prepared to provide details such as event schedules, projected revenue, and risk mitigation plans. Request a quote today to protect your season from unexpected loss.
For broader protection, some schools also explore coverage options for collegiate bowl games and all-star events, or consider policies like student accident and health insurance for collegiate sports programs.
Frequently Asked Questions
Does this insurance cover weather-related cancellations?
It may, depending on the policy terms. Some policies include coverage for weather, while others exclude foreseeable or seasonal weather risks.
What documentation is needed to file a claim?
Insureds typically need to provide financial records showing projected versus actual revenue, along with evidence of the cause of cancellation.
Does this insurance cover rescheduled games?
If the game is rescheduled and revenue is recouped, benefits may be reduced. Full cancellation generally triggers the most comprehensive coverage.
How far in advance should coverage be purchased?
It's best to secure coverage as early as possible, ideally before any known risks arise, to ensure full protection.
Still have questions? Talk to a local insurance expert.