Tips for Protecting a Sports Camp From Risk
Sports camps come with several inherent risks, and it's impossible to avoid all of the potential perils that these camps face. There are ways, however, to reduce the risks that a sports camp faces. Use these tips, and you'll keep your sports camp better protected from loss and liability.
Create a Legal Business Structure for the Camp
First, make sure your business is set up as a legal business structure. You'll probably want to make the camp a limited liability corporation or limited liability partnership, but S-corporation and C-corporation structures are also possible. If your camp is run as a non-profit, you might qualify for a 501(c)3 designation from the Internal Revenue Service.
An accountant can help you determine how best to set up your camp as a business, but all of these structures provide the same essential protection with regard to risk. Should the camp be sued in a liability case, the camp's potential financial loss will be limited to the assets that the camp owns. Your personal assets won't be at risk.
Purchase the Right Sports Camp Insurance Coverages
Second, insurance will help protect your camp from both property loss and liability lawsuits. There are several different sports camp insurance coverages you can purchase for your camp.
Commercial contents coverage is used to insure the equipment that businesses own. Your camp likely leases or rents space, and doesn't need full-fledged commercial building coverage that's used tor insure owned buildings. You should have coverage for all of your camp's equipment, though, and that's provided through commercial contents coverage.
General liability coverage is a broad protection that guards against many basic liability-related risks. Should someone be injured in a common accident while your camp is going on, this coverage will provide the injured person with appropriate compensation. For example, it may cover an accident where a participant is hurt because they trip over an extension cord.
Participant liability coverage protects against injuries that specifically take place during official camp activities. If someone is hurt during a game or drill, general liability coverage won't cover the participant's injuries but participant liability coverage will.
Business interruption coverage can protect your camp in a couple of different ways. If you're unable to hold the camp because of a disaster, this coverage might provide funds to pay the companies you contracted with. If you can't hold the camp because a contracted company didn't meet their obligation, this coverage might provide you with revenue for the lost income.