For some, the World Rugby Classic is a week of competitive rugby. For others, it is a nostalgic trip down memory lane.

But for organisers, the week long festival is also an expensive proposition.

Should it be postponed, relocated, cancelled or abandoned, the costs incurred in its set-up would for the most part be irrecoverable, leaving organisers to pick up additional expenses arising.

Similarly, any personal injury suffered by a player during the Classic, or even a spectator at the matches, could potentially hit the organisers in the pocket should there not be adequate insurance coverage.

Courts have traditionally treated sport as a dangerous pastime. The attitude has been that anyone engaging in sport is presumed to know what he or she is getting himself or herself in for, and voluntarily accepts the risk of injury from a 'normal accident of the game'.

Roman lawyers put it best, Volenti non fit injuria: "To the willing there can be no injury."

Having said that, a player may be held liable for an injury caused to another player if his conduct is deliberately intended to injure, or is reckless such that it is a departure from the standards that might reasonably be expected of anyone playing the game.

Either way, it is essential that athletes have adequate insurance coverage should they sustain an injury on the field of play. Spectators cannot complain if injured through a normal hazard of the game.

However, if an injury occurs either because a player has been negligent or the owners/occupiers of the venue have been negligent this could bring about a cause of action against the responsible party.

Organisers cannot exempt themselves from liability by claiming to do so on their tickets or on prominently displayed public notices. The courts will hold invalid any contract term or notice purporting to exclude or restrict liability for death or personal injury caused by breach of the "common duty of care".

Even the referee owes a duty of care to the players on the pitch and potentially the spectators. In the English case of Smolden v Whitworth a rugby football referee was found to be negligent in that he failed to properly control a rugby match. The plaintiff, 17, sustained a broken neck when a scrum collapsed during a match that had had an abnormally high number of scrum collapses.

The plaintiff submitted that the referee had not exercised proper control of the game nor adhered to the official rules of the game and the judge found in his favour. The principle of volenti non fit injuria did not apply in this case since the plaintiff could not be held to have consented to the referee's breaches of duty. Organisers might also be held vicariously liable for any injuries caused by the negligence of a referee hired by them to officiate the match in question.

Insurance to cover any potential injury to both spectators and players alike is therefore essential at sporting events.

An event can also be adversely affected by unforeseen weather conditions. Legally an individual that has purchased a ticket to an event that does not take place is entitled to receive a refund for the purchase price of the ticket, similarly all sponsors of the event would also be entitled to the return of sponsorship money.

Weather insurance can indemnify the organiser for their costs, expenses and/or diminished revenue should bad weather affect an event. Similarly event organisers should always consider taking out cancellation insurance, as ticket holders are legally entitled to a refund should there be a non appearance by a key performer or speaker, or in the case of the Rugby Classic of a team.

Strikes causing disruption to scheduled air services, illness of players, terrorism which may cause security alerts and may dissuade people from travelling or other events taking place either within or outside of Bermuda may cause an event to be cancelled.

Events are often used as marketing tools to boost awareness of an event, company or product. Insurance can also be obtained, and in the majority of cases is obtained, to indemnify the insured from specific prizes for example a spectator participation competition of kicking three consecutive conversions from different positions on a rugby pitch.

Organisers should always take out insurance cover to limit the liability to the premium payment alone or else risk losing any potential profit paying out for a prize.

In all of the scenarios that I have outlined above, prudent preparation on the part of the organisers of an event or sporting festival can insure against losses that might otherwise prove catastrophic.

Attorney Marc Wetherhill is a member of the Insurance Team in the Company Department of Appleby Spurling & Kempe. Mr. Wetherhill thanks Justin Freisenbruch of Freisenbruch-Meyer Insurance Services Ltd. for his assistance in the preparation of this article. Copies of Mr. Wetherhill's columns can be obtained on the Appleby Spurling & Kempe web site at www.ask.bm.

This column should not be used as a substitute for professional legal advice. Before proceeding with any matters discussed here, persons are advised to consult with a lawyer.