With an estimated value of $213 billion, the sports entertainment business dwarfs the auto and movie industries. More than just a game, it involves complex strategy, multi-million dollar contracts and aggressive marketing and promotion -- leaving little room for injuries or missteps.
“A season can turn on an ankle,” said Candysse Miller, executive director of the Insurance Information Network of California. “Insurance coverage helps level the field between financial success and a devastating loss.”
Although many sports franchises have farm teams to support the ebb and flow of their rosters, insurance provides additional options to both teams and players. These include coverage for the loss of future earnings, contract completion protection, the added costs of agents or managers and even the loss of endorsements. Athletes’ families can also benefit from coverage, should a player die or suffer a career-ending injury.
At the college level, athletes can secure college draft protection, which protects them from the financial pitfalls of a career-ending injury before they turn professional.
Insurance can also impact players’ contract negotiations. By securing tailor-made coverage, a team can lessen its own exposure and sign a multi-year contract with a player who has recovered from a major injury.
Although not every peril can be covered by insurance, professional sports cannot compete without the backstop of financial security. Insurance policies allow both pro athletes and teams to be prepared financially to meet the physical challenges of today’s wide world of sports.
IINC is a non-profit, non-lobbying insurance trade association, dedicated to helping consumers understand insurance and safety issues.