Key Takeaways
- The $56 billion youth sports market is driving demand for new fields, arenas, and multi-sport complexes at the local level
- Community facilities are transitioning from single-sport venues to multipurpose destinations hosting concerts, weddings, and health clubs
- Fan experience additions like tailgates, inflatables, and pony rides create insurance gaps many operators don’t anticipate
- Slip and fall incidents generate the highest claim volume, while security and inadequate parking lot lighting are growing concerns
- Food and beverage operations remain a liability for venues even when subcontracted to third parties
From Single-Sport Courts to Entertainment Hubs
Youth sports facilities are undergoing a significant transformation. Venues once dedicated exclusively to basketball tournaments or soccer leagues are repositioning themselves as community entertainment destinations.
“They’re seeing value in being multifaceted,” said Kelsey Closson, vice president of recreation at K&K Insurance. “Some will host concerts, others add health clubs, and many want to be the go-to place for both sports and non-sports activities.”
This shift reflects broader market dynamics. The $70 billion youth sports sector continues to fuel construction of new fields, arenas, and multi-sport complexes. Travel ball programs and organized leagues are expanding, creating sustained demand for facilities that can accommodate multiple uses and revenue streams.
How Multipurpose Use Changes Risk Profiles
The move toward diversification introduces liability challenges that many facility operators overlook. When a venue that typically hosts weekend tournaments begins staging weddings or live music events, the insurance requirements change substantially.
“At a sporting event, half the crowd could be rooting against the other half, so emotions run higher,” Closson explained. “That’s a very different security challenge compared with a concert, where everyone is cheering for the same outcome.”
Insurance underwriters now evaluate facilities based on their full scope of activities, not just their primary sports programming. A facility’s general liability policy may contain exclusions that don’t cover newly added amenities or events.
Fan Experience Additions Create Coverage Gaps
Beyond core sports programming, youth facilities are investing in fan experiences to keep families on-site longer and generate additional revenue. These additions range from tailgate zones and pre-game entertainment to inflatables, pony rides, and luxury hospitality packages.
“Insureds don’t always think about those exposures,” Closson noted. Even parking lot management and tailgating activities require proper underwriting, as liability ultimately falls on the venue operator.
Facility managers should review their coverage before adding new amenities. A general liability policy designed for basketball tournaments may not adequately cover carnival rides or outdoor cooking areas.
Persistent Risks Demand Consistent Attention
Despite evolving business models, traditional hazards remain the primary source of claims. Slip, trip, and fall incidents generate the highest claim volume across youth sports facilities.
Closson identified two other growing areas: security incidents in crowded venues and inadequate parking lot lighting. Both receive increased scrutiny from underwriters during policy reviews.
“It sounds simple, but surfaces need proper traction, lighting in parking lots has to be maintained, and bathrooms need consistent cleaning,” Closson said. “Getting the little things right makes a huge difference.”
Other commonly overlooked exposures include golf cart usage for transporting guests across large complexes and climate-related hazards. Open-air facilities need documented evacuation and lightning protocols.
Food and beverage operations present additional liability. While many venues subcontract concessions, this doesn’t eliminate the facility’s responsibility if food handling issues arise.
“Almost every venue is selling food, because they want people to stay longer,” Closson explained. “But if food isn’t handled properly, it becomes the venue’s responsibility. Subcontracting helps, but it introduces vendor risk that must also be managed.”
Underwriting Challenges as Construction Accelerates
The insurance market for sports venues remains active, though pricing has increased due to nuclear verdicts and rising litigation costs. Excess capacity is limited, particularly for larger projects requiring substantial coverage towers.
No standardized insurance package exists for youth sports facilities. Some venues simply rent space to leagues, while others organize tournaments, operate health clubs, or function as full-service entertainment centers. Each operational model creates a distinct mix of exposures.
“If the facility is responsible for organizing the event, they may need participant accident coverage and other specialized policies,” Closson said. “There’s no boilerplate solution. Each facility has a different mix of exposures, so it’s important to underwrite individually.”
As youth sports facilities continue expanding their offerings to capture more revenue, operators should work closely with insurance professionals who understand the sector’s evolving risk landscape.
via: Insurance Business / SPG
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