"Club was set to buy insurance" [Vol. 8, Issue 20, pg 5] by Sarah Galiotto

The New Orleans Hornets were to purchase business-interruption insurance. Before they could do so Hurricane Katrina came to Louisiana and tore up the Gulf Coast. This insurance was to be bought just days later, but the team was too late. This type of insurance would have covered what the team would have earned had this disruption not occurred. It would have also covered the costs of temporary location. Days shy of buying this insurance the New Orleans Hornets will deal without it, no expenses being covered and payment for relocation will not be aided.

So what does this tell teams to do, especially in an occurrence of a hurricane, tornado, or some other form of natural disaster or bizarre occurrence? The teams should have purchased this insurance in the first place. It is said that only “about half of pro teams have some type of business-interruption insurance.” It is the Hornets’ loss that they did not purchase this previously because their business would not have to pay for relocation and other expenses themselves. C.Y.A. is what I say.