From the Field to the Fans: Insuring Mega Sports Events

Authors: Stephen Bortolon Brent Brandham

Canada is preparing to take centre stage as a co-host of the 2026 FIFA World Cup — the world's largest single-sport event. The tournament will bring together thousands of athletes, coaches, officials, volunteers, fans and spectators from around the world.

For Canada, the World Cup is an opportunity to affirm its status as a premier destination for hosting events of global cultural significance. Putting on such events also means carrying great responsibilities with precision and expertise.

Organizers will need to ensure the safety and security of participants and spectators while meeting FIFA's requirements, obtain the necessary sports event insurance and comply with Canada's regulatory frameworks.

Mega sporting events like the World Cup attract enormous crowds and generate intense global interest. The ambition of governing bodies for bigger, better and more globally visible events raises the commercial stakes for organizers. Multiple stakeholders are involved, and major infrastructure investments are often required.

Given the complex logistics involved, organizers must plan for unforeseen disruptions. So for event organizers — and their governments and host cities — one of the primary challenges is ensuring the appropriate insurance is in place. To secure appropriate event liability coverage, organizers must conduct a detailed assessment of potential risk factors.

Key liability risks for mega sports events

It might be tempting to think the risk profile of sports events is relatively straightforward: It's all about proper crowd control. However, as important as that is, organizers of large events face a much more complex set of overlapping risks, ranging from liquor liability to cyberattacks.

Public safety and crowd management risks

Public safety and effective crowd management are clearly among the organizers' prime responsibilities. With large numbers of attendees, the risk of injury to spectators, participants and staff is significant.

Spectators may suffer hazards ranging from slips, trips and falls on poorly maintained surfaces to crowd surges that can lead to crush injuries. Attendees can also be injured by flying objects, such as balls or beverage cans.

For example, a major safety lapse occurred at the 2024 Copa América Final at Miami's Hard Rock Stadium. The organizers faced a USD14 million (CAD19 million) class-action settlement after crowd-control failures prevented thousands of valid ticket holders from entering safely, with some facing crush risks at the entry gates.¹

Liquor liability risks

Alcohol consumption represents a significant risk factor at major sporting events in Canada because of its potential to cause serious incidents. To mitigate this risk, organizers should mandate and document standardized alcohol service training programs, such as the Alcohol and Gaming Commission of Ontario (AGCO)‑approved Smart Serve certification.

Additionally, strict rules regulate alcohol consumption at sports venues across Canada:

• Attendees drinking alcohol on premises must meet the province's legal drinking age.
• Valid ID proof is required, especially for those appearing under 25-30 years old.
• Bringing outside alcohol into the venue is prohibited.
• Alcohol can be purchased only from licensed vendors within the venue.
• A maximum of two drinks per person per purchase or possession is typically allowed.
• Alcohol sales usually stop before the event concludes.
• Staff can refuse service or remove visibly intoxicated attendees.
• Some venues offer family-friendly or alcohol-free seating areas.
• Cannabis consumption is prohibited inside venues, even where legal.
• Stadium or arena policies may impose stricter rules than provincial laws.

Even with these rules in place, alcohol-related liabilities can extend beyond the event premises and continue after the match concludes. Event organizers can be sued if inebriated attendees cause property damage or road traffic accidents, especially if the individual was served past the point of intoxication. This risk is commonly referred to as host liquor liability.

"Organizers cannot completely contract their way out of host liquor liability," says Stephen Bortolon, national practice leader, media and entertainment at Gallagher. "If an incident occurs, they'll still be named — and their reputation will still be on the line. For large-scale events, the only responsible approach is comprehensive liquor and sports event liability coverage across all layers. This ensures claims don't pierce primary limits and cascade into excess policies."

Risks to athletes

For athletes, the risks are particularly significant, especially in contact sports and during extreme weather conditions. Heat exhaustion can cause serious injuries, or catastrophic injuries may occur. This risk can rebound upon event organizers.

Organizers could face legal action and steep medical bills if, for example, an elite athlete suffers an injury and the cause is found to be organizer negligence. Organizers can mitigate these exposures by securing comprehensive medical coverage to address potential liabilities.

Volunteering workforce risks

Sport events rely heavily on volunteers across every point to operate successfully. Voluntary roles are varied, and some are high risk and public facing, such as working with children or the elderly, managing large crowds, handling cash or sensitive equipment.

Event organizers are liable for addressing risks pertaining to volunteers, including potential injuries, misconduct or inadequate training provided to them (which can potentially impact event safety overall). This makes it imperative to screen, vet and train volunteers properly. For higher-risk roles, background checks and specialized training are more important, given the associated risks and liabilities.

"Volunteers must be properly trained to navigate interactions with people from diverse social backgrounds at this global event," cautions Brent Brandham, Sports and Recreation national practice leader at Gallager. "Any misstep could spark a conflict, public backlash or legal issues."

To learn more about the risks volunteers pose to sporting organizations, read our article Aligning Sports Events Insurance Coverage for Volunteer Staffing Risks.

Extreme weather and environmental risks

Rising temperatures and air pollution are emerging as significant concerns for sports event attendees. Prolonged exposure can lead to medical emergencies, including heat stroke, dehydration and respiratory issues.

Unusually warm weather has also been linked to performance challenges and safety hazards for athletes. Heat stress can impair physical performance, while poor air quality may exacerbate existing respiratory conditions. Additionally, extreme weather conditions have also contributed to accidents and crashes during events, increasing the risk of injuries.

In response, organizers are implementing innovative solutions. For instance, due to anticipated extreme heat at several 2026 FIFA World Cup venues, FIFA will implement a three-minute cooling break in each half of every match.² Such measures help players adapt safely to rising field temperatures.

"Long-term climate unpredictability makes planning for sports events tricky and raises liability concerns for environmental damage," notes Bortolon. "Organizers can tackle this with sustainable climate adaptation strategies for future events."

Security and cyber risks

Protecting international sporting events from security threats is important, particularly in today's geopolitical climate. Large gatherings are potent targets for civil unrest, politically motivated attacks, petty crime and fan violence.

The 2024 Copa América incident illustrates this threat. Fans overwhelmed the stadium, including entering through ventilation areas, forcing the event to be shut down. This incident shows how quickly security lapses can spin out of control.

Security teams must enforce robust policies governing the use of force and the removal of disruptive individuals during crowd-control efforts. Organizers must also maintain sufficient event liability insurance to mitigate the risk.

Venue infrastructure risks

As mega sports events witness near-capacity crowds, venue infrastructure can come under significant strain, potentially exposing structural faults or weaknesses. For example, barricades may collapse, seats or stands may break, or the floor and restrooms may be poorly maintained, all of which can lead to accidents. Adding to the complexity for organizers, different contractors elements may manage each of these areas.

The use of multiple contractors is why event organizers need to ensure that their insurance policy includes coverage for contractual liability. Such coverage ensures that liability can be assigned to the responsible contractor if damages result from their negligence. This coverage protects the organizer from direct financial exposure. Additionally, organizers should require that contractors maintain their own liability insurance.

Event cancellation and financial risks

Perhaps the most disruptive risk comes from the cancellation or postponement of any event or match fixture. Causes can range from extreme weather to security threats. Such factors are increasingly disrupting sports events, as seen during the 2023 Canadian wildfires, leading to cancellations or scaled-back events and consequent revenue losses.³

Another major financial risk arises from contractual liability. The primary organizer hosting events must manage and oversee multiple contracts, including those for the venue, third-party alcohol services and security contractors. If any of these contracts is breached or services aren't delivered, the organizer may face financial losses. Having a relevant contractual liability clause added in the event insurance policy can ensure liability is transferred to the contracted entities.

Safeguarding experiences: Optimizing a sports event policy

Organizing professional sports tournaments has become a high-stakes undertaking in recent decades. As the events grow in scale and complexity, any lapses can result in significant financial or legal penalties.

Mega sports events require multiple insurance coverages to protect all parties against various hazards. At the same time, some risks can be mitigated adequately without insurance. Finding the right balance between the two is key — as is negotiating premium levels and any risks specifically excluded from policies.

"After all, what's the point of an insurance policy if critical exclusions lead to greater costs later from a single claim?" points out Bortolon.

For organizers, it's important to find an insurance broker they trust — one with knowledge of the unique demands of the sports industry. Partnering with a specialized broker with tailored advice can help protect against unforeseen risks.

Game on: Comprehensive sports event insurance

Gallagher brings decades of rich, first-hand experience in insuring provincial and national sporting organizations, offering deep insights into the risks associated with hosting and operating such major events in Canada. Our strategic risk management expertise and tailored insurance solutions come together to ensure events run smoothly and create unforgettable experiences for fans and athletes alike.

Secure the right sports event insurance with Gallagher. Contact us to develop a well-optimized policy to support your event's success.