The relationship between local sporting clubs and councils

The relationship between local sporting clubs and councils: tackle your building, stock, and contents insurance head on

Local sporting clubs and their respective councils share a collaborative relationship, particularly when it comes to managing responsibilities for building, stock, and contents insurance. Fully understanding these separate responsibilities and ensuring the lines don’t become blurred, is crucial to guarantee the smooth operation of local sports clubs.

Local sports clubs and their distinct responsibilities

For local sporting clubs, the first port of call should be to refer to your lease agreement clauses. These often detail the minimum insurance coverage levels and lay out that the council requires proof of insurance. Councils may provide guidelines to make sure local sporting clubs are meeting insurance obligations.

The following types of insurance are essential for lessees to prevent financial losses, operational disruptions and to avoid legal and compliance issues:

Building insurance - covering all bases as a lessee

Councils generally retain responsibility for insuring the physical structure of the facility. However, lessees may be required to contribute to the cost of building insurance through fees or levies.
Exceptions to this occur if you, as a lessee, make significant improvements to the facility. Here, you may need to insure those additional features separately. For instance, if the building originally included a very basic club house and changing rooms, clubs you might want to create a new gym area with specialized equipment, a café for players and spectators, or install expensive flood lights to accommodate evening matches. Since these additions significantly add to the value and functionality of the sports facility, the council may require you to insure these improvements separately. 

Contents insurance

This responsibility falls on the shoulders of the lessees. You must insure your own contents, such as equipment, furniture, and other items that exist within the facility. Coverage for contents insurance typically covers theft, damage, or loss of these items.

Stock insurance

Finally, lessees are responsible for insuring stock or inventory stored at the facility. This includes items used for operations, such as merchandise or consumables. Policies should include cover for theft, damage, or loss of stock during the lease period.

What are respective councils then responsible for?

Facility management

Usually, councils own and manage the parks, community centres, and sports fields that are used by local clubs. Therefore, they’re responsible for maintaining these facilities which largely involves ensuring they meet all the safety regulations and are fit for purpose.

Insurance requirements

Councils often require clubs to have specific types of insurance as part of their usage agreements. This frequently includes public liability insurance to cover injuries or damages that occur during club activities.

Support and funding

Councils sometimes provide funding or grants for clubs to help with insurance cover and to improve and enhance their facilities. They may also offer discounts or subsidies for clubs that serve vulnerable populations and areas. 

Risk management as a key consideration 

Both clubs and councils should ensure that proper risk management practices are in place to minimise potential liabilities. This includes the regular maintenance of facilities and ensuring all activities are conducted in accordance with corresponding safety standards.

As lessees of council-owned sporting facilities it’s vital you don’t drop the ball regarding your coverage. You need to be confident that you’re upholding responsibilities for building, stock, and contents insurance, as outlined in lease agreements. Procuring the necessary insurance protects your club from unforeseen events that could otherwise lead to significant financial losses. Comprehensive protection provided by the Howden Sports Property Package allows clubs to focus on their primary mission of promoting sports and community engagement and the proper functioning and sustainability of clubs and their participants.