The sports industry is undergoing seismic shifts, with cultural changes and regulatory updates transforming how risks and liabilities are managed. Rob Holmes (pictured), executive general adjuster and national director of Crawford & Company’s Global Technical Services, explained to Insurance Business Canada how these evolving dynamics are reshaping the responsibilities of sporting organizations.
“We’ve seen an upward trend in historical abuse and sexual assault claims over the past few years,” Holmes said, addressing one of the most persistent challenges. This trend, which shows no sign of plateauing, has exposed organizations to increased scrutiny and systemic liabilities. It is a problem not confined to isolated incidents but one that demands comprehensive, long-term strategies to ensure safety, accountability, and trust.
And the regulatory environment only compounds these difficulties.
“We’re also seeing a lot of regulatory changes and new disciplinary mechanisms being implemented with sporting organizations, and so that’s created a new environment, a new landscape that needs to be navigated,” Holmes said. This new landscape involves managing overlapping civil and police investigations while integrating internal and external disciplinary bodies. These changes require organizations to adopt robust systems and protocols that align with these new frameworks, ensuring they can respond effectively to both existing risks and new requirements.
The challenges are not limited to elite or professional sports. Holmes said that these issues extend across grassroots and community organizations, which often lack the resources and expertise to manage such complexities independently.
“At the grassroots level, you might not have the sophistication to navigate these things,” Holmes said. Smaller organizations frequently depend on guidance and support from larger governing bodies, which can provide training, resources, and expertise. However, even with this assistance, the growing demands placed on volunteers, the backbone of many community sports programs, have created new vulnerabilities. Holmes said that “where we do see things sour with the volunteer pool is with the increase in litigation and complaints that require time and resources that volunteers may not have.”
At Crawford & Company, they’ve taken a proactive role in addressing these challenges, particularly through data-driven insights. By collecting and analyzing data on incidents and injuries, the company helps organizations identify patterns and implement preventative measures. Holmes pointed out that these insights have historically informed changes to rules, equipment standards, and even legislative reforms. This forward-thinking approach not only mitigates risks but also positions organizations to respond to emerging threats more effectively.
The rise of extreme sports and eSports further complicates the landscape. For extreme sports, the inherent dangers demand elevated responsibility from organizations, including clear communication of risks and comprehensive participant preparation. “The more extreme or risky an activity, the greater the onus is on the organization to inform the participant of the risk,” Holmes said. In contrast, eSports presents unique challenges tied to its digital nature and the sedentary habits it promotes among participants. Although claims in this area remain limited, Holmes emphasizes the need to address these issues as the sector continues to expand.
Crawford & Company’s involvement extends beyond traditional liability management, particularly in high-stakes events where real-time risk mitigation is crucial. Holmes describes how the company embeds adjusters on-site during major events, enabling immediate responses to incidents. These efforts often begin during the planning stages, ensuring protocols are in place to address potential risks before they arise.
“We are involved in pre-planning phases and providing our input,” he said.
