What are the insurance risks for professional sportspersons? IE mag takes a look.
Insurance is often regarded as a grudge purchase – we do it because we have to. Without insurance, we are left unprotected against a seemingly endless array of risks, but for professional sports stars those risks are far greater. Apart from the usual healthcare, vehicle, or home insurance, there are other forms of insurance available to professional athletes such as footballers, cricketers, tennis players, F1 or Touring Car drivers that meet their bespoke needs.
Personal insurance policies for professional athletes have been around for quite some time, and they are geared towards protecting these star assets from injury, both on and off the field of play. These professional athletes are often traded for hundreds of millions of dollars, making their health and fitness all the more important. In the UK brokers like Ripe, with their Insure4Sport brand specialise in this cover. Then there are events like Wimbledon, which will see one insurer meet an estimated £100m bill for the cancelled tournament.
Fortunately, you won’t be needing professional athlete insurance if you choose to participate in virtual sports games. Recently, a top-tier provider of these games announced that it was launching football carnival slots, and players needn’t sign up for personal injury insurance to get started. Of course, it helps that credible companies are fully licensed and regulated to deliver on expectations. You’re always in safe hands when you pick a UKGC-licensed and regulated operator with a full suite of security protocols in place. These include 18+ certification, Thawte™ security, GA compliance, and IBAS affiliation.
Nowadays, leading insurance brokerages offer professional athlete insurance, specific to the sporting arena and it goes way beyond insuring injuries that may cause a no-show at the next fixture.
For example, professional athletes have expensive tastes and lifestyle preferences. This naturally lends itself to higher insurance premiums because their personal assets, which often include expensive palatial homes around the world, plus yachts, supercars, superbikes, jewellery, plus an entourage of assistants, storage facilities and much more. Yes, pro athletes take out huge Personal Injury (PI) insurance coverage for their bodies, but the risk of theft, kidnap, ransom, reputational damage on social media and more all has to be factored in.
When it comes to PI insurance, one coverage option is known as Permanent Total Disability, abbreviated to PTD. This form of professional athlete disability insurance is absolutely necessary for leagues like the NBA, NFL, MLS, NHL, ITA, and others. This form of insurance differs considerably from other insurance in that it has higher limits, including provisions for accidental death and dismemberment, permanent total disability, or temporary total disability. For example, football players who snap their ACLs, or cricket players who tear their rotator cuffs, or swimmers who experience spinal injury, and so forth.
The main forms of professional athlete insurance are best summarized below:
- Permanent Total Disability (PTD)
- Temporary Total Disability (TDD)
- Kidnap, Ransom, and Extortion Coverage
- Teams Stop Loss Coverage
- Contractual Bonus for Achieving Predetermined Goals Coverage
- Collegiate Athletes to Be Drafted Coverage
- Cost of Managers and Agents Coverage
Professional athletes tend to prefer what is known as complete umbrella insurance. As its namesake suggests, this type of insurance offers broad coverage across-the-board, including vehicles, home, possessions, and personal injury. By opting for complete coverage, high-performance athletes get maximum protection against unforeseen events.
The reputable insurance brokers also focus on liability exposure for present and future wealth. Liability insurance provides the necessary cover against those people who target celebrity athletes, hoping to get a slice of their assets.
Fact is, the extremely litigious nature of society nowadays means athletes may well become targets of lawsuits. Insurance is the best defence against this unique risk.