Insuring a Mega Sports Event. All figures are estimated values based on Beazley's knowledge of insuring these elements f
Insuring a Mega Sports Event The forthcoming World Cup is predicted to be the most watched tournament ever, with a vast global TV audience anticipated. With billions of dollars riding on the success of the event, Beazley outlines some of the specialist risks that the insurance market is likely to be covering.
Event cancellation
Construction
The tournament or a key game might be cancelled because of civil unrest or public transport closures denying access to venues, or even a sudden outbreak of disease. With so much riding on the event financially, from sponsorship to ticket refunds, event cancellation cover is essential.
$1.25bn
Accidents happen during stadia construction, and lawsuits are likely if the venues are not ready on time, so construction ‘All Risks’ reinsurance is likely to have been placed to cover the stadia and any resulting loss of revenue arising from delays.
$500m Material damage estimated sum insured $200m Delay in completion estimated sum insured
Estimated event cancellation cover including TV rights and sponsorship
Hospitality & merchandise
Cyber/data breach
Corporate hospitality, event companies and souvenir manufacturers are likely to have event cancellation cover.
Ticketing companies could have data breach insurance to help mitigate financial loss and brand damage risks should ticket holders financial information be stolen.
$500m Estimated sum insured
$100m+
Hotels
Terrorism
Block bookings will have been made years in advance, and hotels are likely to have cover against financial loss should the event be cancelled or moved to a new location.
Terrorism insurance for physical damage to stadia, or a co-ordinated attack at a number of venues and terrorism liability to cover individual persons is likely to have been purchased.
$1bn
$110m Overall coverage estimate Sales promotions
Event-linked sales promotions are popular and companies take out insurance to cover the cost of an individual winning the ‘big’ prize and for over redemption risks.
$150m Estimated sum insured Brazil World Cup
facts
600,000 people are expected to go to Brazil for the tournament – nearly the same population as Washington DC
Estimated sum insured for an individual ticketing agency
Estimated physical damage sum insured
$200m Estimated terrorism liability sum insured Players
Player entourage
With the world’s top players on the pitch, serious and sometimes career-ending injuries are a significant risk. Their clubs may have purchased insurance including: personal accident, loss of player income, payroll protection and even asset/transfer value cover.
Kidnap is a significant risk to the players’ partners, families and team entourage. Kidnap & ransom cover is likely to have been bought by most of the high profile attendees.
$25m Estimated sum insured per team
$140m Estimated exposure for each star player $11 billion is the estimated Brazilian government’s budget for the event - just more than the GDP of Mauritius
380,000 permanent and temporary jobs are expected to be created by the event - equivalent to the population of Florence, Italy
$27.7 billion is the estimated revenue generated by the event - the same GDP as Latvia
All figures are estimated values based on Beazley’s knowledge of insuring these elements for mega sporting events.
1,612 miles is the distance from Rio to furthest stadium – almost the distance from London to Moscow
