Tennis Club Insurance: Liability Coverage Essentials

General Liability Insurance

General liability insurance is the foundation of any tennis club insurance program. It covers claims of bodily injury and property damage that occur on or in connection with your club activities. If a player trips on a cracked court surface and breaks a wrist, or a stray ball damages a spectator car in the parking lot, general liability insurance covers the legal defense costs and any resulting settlement or judgment.

Most tennis clubs carry general liability coverage in the range of $1 million per occurrence and $2 million aggregate. These limits are standard for recreational sports organizations and are typically required by facilities that lease court space to outside groups. Annual premiums for this level of coverage generally run between $500 and $1,500 for clubs with fewer than 200 members, depending on location, court count, and claims history.

• Covers bodily injury and property damage claims from club activities
• Standard limits: $1 million per occurrence, $2 million aggregate
• Required by most facilities that lease courts to outside organizations
• Annual premiums typically range from $500 to $1,500 for small to midsize clubs

Directors and Officers Insurance

Directors and officers (D&O) insurance protects your club board members from personal liability arising from their decisions and actions on behalf of the organization. Without D&O coverage, board members can be held personally responsible for claims of mismanagement, breach of fiduciary duty, wrongful termination of a club employee, or discrimination in membership decisions.

D&O policies typically cover legal defense costs, settlements, and judgments. Coverage limits of $500,000 to $1 million are common for small nonprofit sports clubs. The cost is relatively modest, often $300 to $800 per year. Having D&O insurance also makes it easier to recruit board members, as many qualified candidates are reluctant to serve without knowing their personal assets are protected.

Property Damage Coverage

If your club owns or leases courts, equipment, or a clubhouse, property damage coverage protects these assets against loss from fire, vandalism, storms, and other covered events. Even clubs that operate on public courts should consider coverage for owned equipment such as ball machines, net systems, portable lighting, and storage containers.

For clubs that own their facilities, property coverage should reflect the full replacement cost of the courts, fencing, lighting systems, and any structures. Courts alone can cost $50,000 to $120,000 per court to rebuild, so underinsuring is a significant risk. Review your property valuations annually and update your coverage as you add improvements. If you lease your facility, your landlord likely carries property insurance on the building, but you should verify this and consider tenant improvements coverage for any modifications you have made.

Participant Accident Coverage

Participant accident insurance, sometimes called sports accident or excess medical coverage, pays for medical expenses when a member is injured during club activities. This coverage is secondary to the injured person own health insurance and fills gaps such as deductibles, copays, or services not covered by their primary plan. Common tennis injuries covered include sprained ankles, torn rotator cuffs, and eye injuries from ball strikes.

Coverage limits typically range from $10,000 to $50,000 per incident, with annual premiums based on your membership size. For a club with 100 members, expect to pay $200 to $600 per year for participant accident coverage. This type of insurance is especially valuable because it provides immediate assistance to injured members without requiring them to file a liability claim against the club, which preserves goodwill and reduces the chance of litigation.

USTA Organizational Membership Insurance

The USTA offers organizational membership that includes a general liability insurance policy as a core benefit. This coverage applies to sanctioned activities conducted under the USTA organizational membership, including league play, sanctioned tournaments, and club programs. The included policy typically provides $1 million per occurrence and $5 million aggregate general liability coverage.

USTA organizational membership costs vary by section but generally range from $50 to $200 per year, making it one of the most cost-effective ways to secure basic liability coverage. However, this coverage has limitations. It may only apply to USTA-sanctioned activities, leaving non-sanctioned social events or open play sessions uncovered. Review the policy details with your insurance advisor to understand exactly what is and is not covered, and supplement with additional coverage as needed.

Professional Liability for Coaches

If your club employs or contracts with tennis coaches, professional liability insurance (also called errors and omissions coverage) protects against claims that a coach instruction caused injury or harm. This is separate from general liability, which covers premises-related accidents. Professional liability specifically addresses claims arising from the professional services provided, such as improper technique instruction that leads to an injury.

Coaches should carry their own professional liability policies, and your club should verify coverage before allowing anyone to teach at your facility. If your club provides the coaching directly through employed staff, include professional liability in your club insurance package. Coverage limits of $1 million per occurrence are standard. Some coaching certification programs, such as those from the Professional Tennis Registry (PTR) or United States Professional Tennis Association (USPTA), include liability insurance as a membership benefit.

Event Insurance for Tournaments

Tournaments and special events create additional liability exposure beyond normal club operations. More players, spectators, and activity increase the chances of an incident. Event insurance provides coverage for a specific tournament or event, including liability for injuries, property damage, and sometimes event cancellation costs.

Many insurance carriers offer short-term event policies that cover a single day or weekend for $150 to $500 depending on the expected attendance and scope of the event. If your club hosts multiple tournaments per year, an annual event rider added to your general liability policy may be more cost-effective. Check whether your general liability policy already includes coverage for club-organized events or if events require separate notification and additional premium.

Umbrella Policies and Additional Coverage

An umbrella policy provides an additional layer of liability coverage above the limits of your general liability, D&O, and other underlying policies. If a claim exceeds the limits of your primary coverage, the umbrella policy kicks in to cover the excess amount. For clubs with significant assets or high-profile activities, an umbrella policy provides peace of mind against catastrophic claims.

Umbrella policies for sports organizations typically start at $1 million in additional coverage and cost $500 to $1,500 per year. To determine whether your club needs umbrella coverage, consider your total assets, annual revenue, membership size, and the types of activities you conduct. Clubs that own facilities, host large tournaments, or operate junior programs with minors are stronger candidates for umbrella protection.

• Provides coverage above underlying policy limits
• Typically starts at $1 million in additional coverage
• Costs $500 to $1,500 per year for most sports organizations
• Recommended for clubs with owned facilities or programs involving minors