Super Risks Face Sunday’s Super Bowl Insurers

Like coaches crafting game plans, Super Bowl coordinators are identifying myriad risks of producing the biggest game of the season and how to deal with them.

The game, which has been in the planning process for years, will take place Feb. 5 at Lucas Oil Stadium in Indianapolis and will feature the New England Patriots and the New York Giants in a replay of the 2008 National Football League championship.

Super Bowl producers are sure to have activated their special teams and reached deep into their play book to manage a variety of risk, according to experts at London-based insurance broker Aon Corp.

Events like the Super Bowl require everything from general liability to media liability, event cancellation and property coverage, said Lori Shaw, Aon's director of sports and leisure. "Ninety-eight percent of the stuff you can plan for," Shaw said.

It's that 2% of uncharted territory that can expose event planners to enormous amounts of risk, she said. It wouldn't be outrageous for events like the Super Bowl to be covered in the $100 million range, provided by several providers working together.

"Perils are at the top of the list," said Jerid Schmickle, senior vice president of entertainment and sport for Encino, Calif.-based NAS Insurance Services. "Security. As the insurer you're asking who is the security company? What kind of insurance are they carrying?"

Frank Zuccarello, executive vice president of Mahwah, N.J.-based Exceptional Risk Advisors, said another concern is the possibility of cancellations or delays. Possible causes can range from extreme weather situations to a day of national mourning or myriad unforeseen circumstances, said Zuccarello, whose company has provided contingency coverage in the past for college bowl games and major horse races.

"Not only do you have to have a plan A, but a plan B," Zuccarello said. "The insurance company is there to help you pay for the plan B."

The Super Bowl host committee said in a statement they have been laying a "strategic plan for any possible weather scenario" and has "contingencies for all weather circumstances."

Zuccarello's role is to work with event coordinators to mitigate and manage risk before it even occurs. That means lots of careful planning.

"You have the event itself ... terrorism, or the scare of terrorism," Zuccarello said. "Abandonment, postponement, relocation, death of any insured person, unavoidable travel delay, damage or disruption to the venue."

Zuccarello said Super Bowl producers likely planned for hiccups with the extravagant half-time show, which will feature pop legend Madonna.

"There is probably going to be some insurance on her in case she doesn't show up or gets sick," he said. "If Madonna doesn't show up, what do you do then?"

Any of the game's moving parts, like the game itself, the half-time show, food vendors, media coverage and several thousand fans, can create unique problems. The tedious planning process begins by looking at past Super Bowls and then adding to or enhancing the experience every year, said Chris Rogers, Aon's director of risk control. But past experiences won't completely help and a certain amount of anticipation is required, he said.

"You don't drive your car by looking in the rearview mirror," Rogers said.

Lance Ewing, vice president of national accounts for Chartis Insurance Co., said in a BestDay Video interview that risk extends beyond the goings on inside the stadium. He said people renting out their homes for Super Bowl-goers is a liability issues. Local Indianapolis hospitals need to prepare for the potential to have 25,000 fall ill.

"There are myriad potential risks, some insurable and some need to be risk managed, if you will, more so than others," Ewing said.

The interview with Ewing is available at http://www.bestweek.com/v.asp?v=ewing112

(By Michael Buck, senior associate editor, BestWeek: Michael.Buck@ambest.com)