Soccer City : Stadiums like this one in Soccer City are insured up to the value of £3.2bn Pic: ©: Reuters
The 2010 World Cup in South Africa will be insured for more than £6.2bn according to Lloyd’s of London, the world’s biggest insurance market. FIFA, national teams, broadcasters and other businesses that have a financial interest in the tournament’s success have taken out insurance policies.
With so much money being thrown around in football this estimate from Lloyd’s has come as no surprise. Underwriters have suggested that stadiums and training facilities for the World Cup are covered up to the value of £3.2bn. Other business opportunities associated with the event will be insured for a further £3bn.
Chris Nash, an active underwriter at Sportscover said, "Competitions, offers, prizes, sponsorship, broadcast rights - it's impossible to know how many there are, but all companies with these financial implications need coverage”.
Much of the insurance cover is to protect businesses against any potential delays and injuries that may arise during the World Cup. A spokeswoman from Lloyd’s shed light on what kind of things need to be covered.
"If the opening ceremony is delayed, that will affect the broadcasters, because they've got their advertising slots in place," she said. "Similarly, if the final has to be delayed for whatever reason, people might want money back for their tickets."
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Alarmingly one factor that hasn’t been accounted for in the £6.2bn insurance estimate is the value of insurance policies applying to individual players who take ill or become injured.
Underwriter Peter Thompson at Beazley believes that insurance against sports disability for a top footballer could go as high as £40m. Further to this, players’ celebrity status is also an insurable interest to their clubs.
With many clubs still feeling the pinch from the economic downturn, the revenue from replica shirts and other player related merchandise can be vital to keep some clubs afloat.
