As US sports venues evolve into highly digitized, multi-experience destinations, the risk profile facing operators is rapidly changing.
Heading into 2026, emerging risks tied to technology, climate volatility and operational convergence are forcing underwriters to rethink traditional approaches to sports and entertainment insurance.
AJ Morgan (pictured), senior vice president of the sports division at K&K Insurance, described the shift as a structural one. Sports venues are no longer “just about the main event.”
“They’re elaborate ecosystems designed to engage fans before, during and after games, often across multiple age groups and experiences,” Morgan told Insurance Business. “That fundamentally changes exposure.”
Cutting-edge venues like Intuit Dome in Los Angeles exemplify how advanced data models and AI are being embedded into venue operations. From crowd-flow analytics and biometric ticketing to real-time concessions and security monitoring, these systems generate enormous volumes of data, and new questions for underwriters.
While AI offers venue operators tools to improve safety and efficiency, it also complicates risk evaluation. Morgan noted that cyber exposure, in particular, has yet to be fully absorbed by the market. As venues integrate AI deeper into operations, cyber risk is shifting from an ancillary exposure to a core consideration alongside general liability and property.
“Stadiums collecting more data have to understand exactly what data they’re holding and whether they’re protected if that data is compromised,” noted Morgan. “That’s becoming crucial to the future of these facilities.”
Weather-related risk is another major force reshaping underwriting for sports venues in 2026. Changing climate patterns are bringing severe convective storms, flooding and extreme wind events into regions that historically saw little exposure.
“Preparation is the most important word when it comes to weather,” Morgan said. “Venues need to prepare for events they may not have had to plan for in the past.”
Open-air and semi-open stadiums are particularly vulnerable, but even enclosed venues face supply-chain disruptions, access challenges and event cancellation exposures tied to severe weather. Carriers are increasingly scrutinizing loss control plans, emergency response protocols and business continuity strategies as prerequisites for capacity.
Large-scale urban developments are further complicating the risk landscape. Projects like Centennial Yards are transforming stadium-adjacent real estate into full-scale entertainment districts, complete with restaurants, bars, retail and year-round attractions.
These developments are where sports, entertainment and hospitality truly converge, according to Morgan. “In the past, those exposures might have been insured separately. Now they’re under one ownership group, and you have to solve for them together,” he said.
The result is layered liability programs that may involve multiple carriers and specialized coverages. Hospitality risk, once secondary, becomes central, said Morgan. At the same time, crowd management, alcohol liability and food safety exposures intensify as venues become destinations rather than single-purpose facilities.
Despite the influx of tech-driven solutions and new market entrants offering analytics platforms and fan-engagement tools, Morgan emphasized that underwriting discipline remains the backbone of insurability.
“There’s always capacity in sports and entertainment,” he said. “But there’s a difference between capacity to write an insured and capacity to cover every exposure.”
Carriers remain selective, particularly on primary layers where exclusions are becoming more common. Brokers are increasingly tasked with building “coverage matrices”: identifying core exposures and then sourcing additional carriers for ancillary risks such as cyber, event cancellation or active shooter coverage.
Notably, active shooter risk has continued its migration out of general liability into standalone policies with separate limits.
“It’s unfortunate, but it’s necessary,” Morgan said. “Those coverages are becoming an important part of comprehensive venue protection.”
Looking ahead, Morgan stressed that preparation and analysis will separate well-positioned risks from struggling ones. Venues that proactively model attendance flow, test emergency response scenarios and reassess weather preparedness are more attractive to underwriters.
For brokers, the opportunity lies in guiding insureds through that process. As sports venues grow more complex, thoughtful risk planning will be crucial to success.
“It’s an exciting time,” Morgan said. “These risks are more complicated, but they’re still solvable. When clients put in the work upfront, it makes it much easier for us to protect them.”
