Euros 2024 – Insurance Considerations

The insurance industry, as ever, played an important role in ensuring that the tournament progressed with the necessary protections in place should anything have gone wrong. 

 

With 24 teams involved, 51 matches played across 10 cities, 2.7million fans attending the games, not to mention those traveling to Germany to soak up the atmosphere, it was one of the largest Euros tournament on record. With that came heightened risk and below we very briefly look at the key areas where potential claims can emerge in a tournament like this.

 

• The organisers will have arranged a comprehensive contingency insurance package to cover the potential for a game or games to be cancelled or postponed. This insurance coverage can provide protection for the revenue and costs of the Insured entity and the contractual liabilities to their sponsors, TV Rights Holders, and the refund of tickets to their customers. Cancellation can occur for a number of reasons such as travel disruption, industrial strikes or terrorism, though most often due to weather. As an example, at the 2019 rugby world cup in Japan, three games were cancelled as a result of Typhoon Hagibis.  Not only did this impact the teams and their chances of qualifying, it impacted supporters, advertisers, TV channels and sponsors.

 

• Damage to property & financial loss. There is of course the risk of damage to key infrastructure, such as stadia, training facilities and accommodation. This can occur due to ‘normal’ perils such as flood, storm, fire etc, with a small but increased risk of damage due to vandalism and spectator activity.   Damage to property can have a significant impact, particularly where a tournament is to take place over a relatively short time frame, thus requiring innovative thinking to either effect repairs in a time sensitive and cost-effective manner, or to consider alternative solutions to negate a cancellation and the increased coats of rescheduling.  Examples include the use of temporary structures or the replacement of playing surfaces. These solutions come at a significant initial cost but overall is cost effective in avoiding a full cancellation or postponement.  Though often excluded, Terrorism remains a risk that’s sadly ever present and is one where cover might be bought back.  Aligned to that, and perhaps other emergency situations, we could see the possibility of fans being denied access to facilities, which then impacts upon the revenue generated, e.g. through beer sales, which is again something that those potentially affected will be keen to insure where possible.

 

• Player Injury. A significant element of risk relates to players sustaining an injury whilst on duty for their country. The players’ contracts of employment are normally with their clubs who will expect often significant compensation should their employee have sustained an injury significant enough to prevent them fulling their contractual duty i.e., playing for them! This risk of temporary total disablement, arising from accidents both on and off-pitch and including whilst in training, is insured by FIFA under a scheme for the benefit of all clubs taking part in the competition. Beyond the risk of ‘innocent’ harm to a player, there’s also the potential player to player liability for perceived reckless challenges or even against the Referee for any potential failure to control the game.

 

• Employers, Public & Product Liability.  Within the stadia there is, of course, always a degree of risk of harm to employees and visitors commensurate with the gathering of tens of thousands of people in one place, all vehemently supporting their home nations, perhaps whilst under the influence of drugs and/or alcohol.  That risk takes a lot of careful management through a process of detailed risk assessment that covers everything from slips/trips and falls and crowd control, to the sale and consumption of food and drink and the plans in case of emergency.   Outside of the grounds, at pubs and clubs across Europe, there’s a massively increased risk of harm which must be taken into consideration and protected against.  For example, we know that pubs in the UK experience c. 50% higher footfall when games are being shown, with a proportionate increase in the sale of beer – most of which tends to end up on the floor when thrown in the air by jubilant fans (though perhaps less of a factor in Euro 2024 so far, given the nature of the England performances to date!).  This temporary change in risk requires a different approach to employee and visitor safety including a switch to plastic ‘glasses’, increased floor inspections and additional door security, all of which can increase the risk of a liability attaching to the establishment, should they fail to demonstrably foresee and forestall the risks involved.

 

•  The risk of a cyber-attack is increasingly becoming a reality for businesses worldwide.  In the UK alone, there is reportedly over 560,000 new cyber threats discovered every day, with 81% of those affecting small to medium businesses.  In the Euros, the risks might include and attack that impacts upon ticketing, the seizure and/or release of confidential data, the disruption of digital platforms which are key to hosting games, general broadcasting and, of course, on-line betting agencies. 

 

So, in summary beyond the on-pitch antics, questionable ref’s decisions and the highs and lows of every stage, like all major events the Euros 2024 presented a whole host of challenges for those directly and indirectly involved, and a catalogue of risks most of which can be carefully managed and, thankfully, insured against.