Only days away from the Super Bowl, the stage is set for the Green Bay Packers and the Pittsburgh Steelers. Preparations have been underway for many months, but of course, the unexpected has occurred; Dallas is blanketed in snow and ice, and the wintery weather is persisting. Both the Dallas/Fort Worth International (DFW), and Love Field airports were temporarily closed, with hundreds of flights cancelled because of bad weather and rolling power outages.

Other airports and roads across the country are frozen and are at a virtual standstill, preventing travel for those planning to attend, not to mention the shipments of goods, supplies, and foods that were scheduled to be transported to the event. These unexpected, but possible occurrences are known in the insurance world as risks. That is what our industry of claims, underwriting, actuarial, and risk management is all about, and it makes up the very core of our industry.

Let's take a look at some of the issues and risks associated with the Super Bowl. An estimated 110,000 people are expected to attend the year's largest NFL event. Other sporting events draw the attention of insurers and risk analysts—for example, the Olympics, the World Cup—but how to handle insuring this particular attraction?

The new Cowboy Stadium, or, as it is often referred to, “Jerry's World” (after owner Jerry Jones), has a 660,800-square-feet retractable roof that can open in 12 minutes. It has a 73-acre tract and can fit the Statue of Liberty in the center without touching the roof. The new stadium's estimated cost of construction was $1.2 billion. That translates to about $1,815.00 per square foot, and that figure does not include the parking lots and surrounding areas.

Neither the Cowboys organization nor spokesperson Brett Daniels would disclose their insurance carrier, as is typical of most NFL owners. It has been reported that after the terrorist events of 9/11, stadium insurance premiums have risen more than five times what they were prior to the date. Cowboys Owner Jerry Jones said that the insurance at the Texas Stadium “increased to $2.4 million from about $500,000” the year following the 9/11 attacks. An exact figure on premiums paid for the new stadium could not be obtained, but is estimated to be in excess of $4 million. The rise in premium is reflective of the new stadium and the liability coverages.

New Capacity for Risk

As with any risk, steps, processes, and precautions can be taken to minimize both risk and exposure. Chris Rogers, director of risk control for National Entertainment Group, a division of Aon Risk Services, spoke with us about risk. He works internationally with large-venue personnel and management, teaching them emergency preparedness, along with threat and vulnerability assessments to identify risk and where to maximize resources.

“While the Super Bowl changes locations from year to year, many of the threats and risks remain the same,” said Rogers. “The decision makers are trained in whatever scenarios could possibly occur or be present.”

When asked to pinpoint the biggest challenge with the Cowboy Stadium, Rogers answered that a new stadium may pose new risks:

“The stadium is new and has not been used in this capacity previously,” he said. “This presents the challenge of developing new vulnerability assessments and determining what is out there, and how to respond to it, thus minimizing the risk potential for the event.”

Along with the stadium and the Super Bowl come the vendors. Everything, including memorabilia, flowers, fences, tents, food services, and more, means more risk and more coverage. They all had a registration date of May 31, 2010 to submit the proper paperwork including “proof of insurance.” They must carry insurance coverage to protect themselves and their employees from any claims that may be presented for a myriad of hazards that might occur.

Another interesting fact about Super Bowl Sunday is that there are more accidents involving pizza delivery drivers than on any other day of the year. Super Bowl Sunday is the biggest sales day for the largest U.S. pizza companies. Domino's Pizza Inc. expects to sell 10 million slices on game night, which is 54 percent more than they would sell on any other Sunday. Pizza Hut, the largest U.S. pizza chain, expects a 60-percent sales increase.

Fireman's Fund Insurance Co., a unit of Munich-based Allianz SE, underwrites as much as 20 percent of U.S. pizza delivery policies, said spokeswoman Suzanne Meraz. Claims will rise “just because there are so many more pizzas being delivered on Super Bowl day,” she said in an interview.

When The Party Is Over

Traffic accidents and fatalities increase on Super Bowl Sunday, too. Studies were done on the last 27 Super Bowl Sundays, and the results showed that accidents were higher after the game, compared with both regular Sundays, and with the time periods before and during the game. The study reflected 1,300 more car crashes, 600 more injuries, and seven more deaths nationwide in the hours after a Super Bowl ended. The study also indicated that there was a slight decrease in accidents on a Super Bowl Sunday during the telecast as compared to any other Sunday. Perhaps even more interesting is that the study reflected that states with a losing team experienced more accidents than neutral states (up 68 percent), while neutral states experienced more accidents (up 46 percent) than the winning state (up 6 percent).

The explanation for the increase is not entirely alcohol-related. The data does show that there is a surge in crashes involving alcohol, but there is also an increase in those that do not involve alcohol. Statistics reveal that there are more accidents on Super Bowl Sunday than on New Year's Eve.

Included in that risk of accidents on Super Bowl Sunday, if you are having a Super Bowl party you may want to be aware of those guests that are drinking, and pay attention to how much they have had to drink before allowing them to get behind the wheel. According to the I.I.I. and Jeanne M. Salvatore, senior vice president and consumer spokesperson, “Those throwing a party where alcohol is served have both a legal and moral responsibility to make sure that their guests are capable of driving safely. You don't want to allow anyone who has been drinking to drive home and possibly kill or injure themselves or others on the road.”

Thirty-five states have enacted laws or have case law that holds social hosts liable if they serve liquor to people who are subsequently involved in crashes that result in injury or death, according to the I.I.I. With the rise of various active awareness groups such as Mothers Against Drunk Driving (MADD) and others, it's obvious that society has little tolerance for drinking and driving. Existing drunk driving laws have been strengthened, and penalties have been increased. Those who break these laws face a harsh insurance rate increase, or may not even qualify for insurance following an accident.

Heartbreaking Outcomes

Another interesting risk emerged in a new study, which suggests that the emotional stress fans feel after a loss may trigger fatal heart attacks. A recent study released in the journal Clinical Cardiology analyzed death records for heart attack victims following the Super Bowl. Researchers found evidence that suggested that the risk of heart attack was greater, especially in people who already have heart disease. It explained that stress generates the fight-or-flight response, which causes sharp upticks in heart rate and blood pressure that can strain the heart. At greater risk were those with heart disease or other factors such as obesity, smoking, and diabetes. Such strain can prove harmful, if not fatal. The study also found that there was a significant increase in deaths among people ages 65 and older.

The Super Bowl is truly a super risk. The enormity of this event, and the risks associated with it go on and on. From those who insure the risks, to those who manage the risks, to those who handle the claims from the exposure, everyone in the industry can learn from the risk known as the Super Bowl.

Special Reports /

The Super Bowl&rsquo;s Super Risks

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