Only days away from the Super Bowl, the stage is set for theGreen Bay Packers and the Pittsburgh Steelers. Preparations havebeen underway for many months, but of course, the unexpected hasoccurred; Dallas is blanketed in snow and ice, and the winteryweather is persisting. Both the Dallas/Fort Worth International(DFW), and Love Field airports were temporarily closed, withhundreds of flights cancelled because of bad weather and rollingpower outages.

Other airports and roads across the country are frozen and areat a virtual standstill, preventing travel for those planning toattend, not to mention the shipments of goods, supplies, and foodsthat were scheduled to be transported to the event. Theseunexpected, but possible occurrences are known in the insuranceworld as risks. That is what our industryof claims, underwriting, actuarial, and risk management is allabout, and it makes up the very core of our industry.

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

The new Cowboy Stadium, or, as it is often referred to, “Jerry'sWorld” (after owner Jerry Jones), has a 660,800-square-feetretractable roof that can open in 12 minutes. It has a 73-acretract and can fit the Statue of Liberty in the center withouttouching the roof. The new stadium's estimated cost of constructionwas $1.2 billion. That translates to about $1,815.00 per squarefoot, and that figure does not include the parking lots andsurrounding areas.

Neither the Cowboys organization nor spokesperson Brett Danielswould disclose their insurance carrier, as is typical of most NFLowners. It has been reported that after the terrorist events of9/11, stadium insurance premiums have risen more than five timeswhat they were prior to the date. Cowboys Owner Jerry Jones saidthat the insurance at the Texas Stadium “increased to $2.4 millionfrom about $500,000” the year following the 9/11 attacks. An exactfigure on premiums paid for the new stadium could not be obtained,but is estimated to be in excess of $4 million. The rise in premiumis reflective of the new stadium and the liability coverages.

New Capacity for Risk

As with any risk, steps, processes, and precautions can be takento minimize both risk and exposure. Chris Rogers, director of riskcontrol for National Entertainment Group, a division of Aon RiskServices, spoke with us about risk. He works internationally withlarge-venue personnel and management, teaching them emergencypreparedness, along with threat and vulnerability assessments toidentify risk and where to maximize resources.

“While the Super Bowl changes locations from year to year, manyof the threats and risks remain the same,” said Rogers. “Thedecision makers are trained in whatever scenarios could possiblyoccur or be present.”

When asked to pinpoint the biggest challenge with the CowboyStadium, Rogers answered that a new stadium may pose newrisks:

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

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

Another interesting fact about Super BowlSunday is that there are more accidents involving pizza deliverydrivers than on any other day of the year. Super Bowl Sunday is thebiggest sales day for the largest U.S. pizza companies. Domino'sPizza Inc. expects to sell 10 million slices on game night, whichis 54 percent more than they would sell on any other Sunday. PizzaHut, the largest U.S. pizza chain, expects a 60-percent salesincrease.

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 becausethere 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 theresults showed that accidents were higher after the game, comparedwith both regular Sundays, and with the time periods before andduring the game. The study reflected 1,300 more car crashes, 600more injuries, and seven more deaths nationwide in the hours aftera Super Bowl ended. The study also indicated that there was aslight decrease in accidents on a Super Bowl Sunday during thetelecast as compared to any other Sunday. Perhaps even moreinteresting is that the study reflected that states with a losingteam experienced more accidents than neutral states (up 68percent), while neutral states experienced more accidents (up 46percent) than the winning state (up 6 percent).

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

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

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

Heartbreaking Outcomes

Another interesting risk emerged in a new study, which suggeststhat the emotional stress fans feel after a loss may trigger fatalheart attacks. A recent study released in the journal ClinicalCardiology analyzed death records for heart attack victimsfollowing the Super Bowl. Researchers found evidence that suggestedthat the risk of heart attack was greater, especially in people whoalready have heart disease. It explained that stress generates thefight-or-flight response, which causes sharp upticks in heart rateand blood pressure that can strain the heart. At greater risk werethose with heart disease or other factors such as obesity, smoking,and diabetes. Such strain can prove harmful, if not fatal. Thestudy also found that there was a significant increase in deathsamong people ages 65 and older.

The Super Bowl is truly a super risk. The enormity of thisevent, and the risks associated with it go on and on. From thosewho insure the risks, to those who manage the risks, to those whohandle the claims from the exposure, everyone in the industry canlearn from the risk known as the Super Bowl.