Playing it safe at the U.S. Open Tennis Championship
Fortunately, the U.S. Open has a history of running successfully and has never been interrupted thus far.
Every sporting event involves a number of risks. These can be large or small, expected or unexpected. There is only one certainty: No one could handle these multiple risks on their own. Without insurance, there would be no U.S. Open, no World Cup, no Olympics and probably no organized competitive sport at all.
Fortunately, the U.S. Open has a history of running successfully and has never been interrupted thus far. If, however, a match were to be delayed by just a couple of minutes due to a simple power failure or transmission error, advertising slots on TV channels would be canceled, bringing in losses nationwide. In addition to technical failure, weather events, natural disasters, epidemics or terrorist attacks could also cause a major sporting event to be postponed, or in the worst-case scenario, canceled.
Spectator safety in the event of a terrorist attack is always top of mind, especially in New York. Unfortunately, recent events have made the possibility of a lone shooter very much in the forefront. For the U.S. Open Tennis Championships, the NYPD, FBI and Homeland Security work meticulously together to secure the facility. From searching bags to undercover security, state of the art surveillance systems and patrolling with helicopters and drones, these three networks run a very tight ship to help ensure the safety of players and fans. They also monitor for cyber attacks, an evolving threat for these large events. Such an attack could set off fire alarms or sprinkler systems remotely, resulting in a panicked crowd or match cancellation. These are risks that insurers, event organizers and security teams are on high alert for.
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Serving up insurance coverage
The insurance industry offers comprehensive protection for all eventualities of a mega sporting event — from the construction of stadiums to the financial losses of organizers and sponsors to the personal health and travel risks of fans or players.
Covering property and liability risks for a major sporting event is standard. The great thing about this event is that it’s held at a purpose-built facility. It’s built entirely with the U.S. Open Tennis in mind, which gives us — the insurance company — great comfort. The USTA Billie Jean King National Center is well-kept and offers state-of-the-art features from food vendors to security.
Customized insurance solutions are also available for the specific requirements of companies that are directly or indirectly involved in the U.S. Open. These include “Prize-Indemnity” or “Over- Redemption” policies, which can cover financial expenses after unexpected sporting successes. For example, an electronic retailer would have to shoulder high costs if it linked a financial discount or refund promotion to the victory of a 10th-seed player and then this actually happens.
Both the USTA Player’s Association and athletes have purchased insurance coverage well in advance of the championship tournament. AGCS is currently insuring the U.S. Open, and having participated in past years, there is a great comfort level with the event organizers and the facility itself. Whether it’s spectator safety, security or cyber attacks, there are various teams working in unison to ensure a successful U.S. Open.
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Peter Williams is the global product leader for live entertainment at Allianz Global Corporate & Specialty. He can be reached at peter.williams@ffic.com.