"Devote the rest of your life to making progress."

    --  Epictetus 

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Elite athletes, both professional and college athletes, must protect their futures when faced with potentially devastating and career ending injuries.  These interests are often protected by specific insurance policies including loss of value and disability policies.  The Firm has substantial experience in advising athletes and litigating claims when benefits are denied.

 

Elite college athletes often have a difficult decision to make—turn pro or stay in school. Most commonly in football and men’s basketball, athletes are permitted to purchase disability and loss of value insurance policies to protect themselves from injury.  Colleges and universities will often pay for some or all of the insurance policies. The NCAA permits athletes to receive up to $10,000,000.00 in coverage. Some policies, however, are very expensive and can cost in excess of $50,000.00. Thus, athletes are left with a difficult choice to make. Without insurance coverage an athlete potentially risks his/her future compensation.

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It is important to note that disability policies and loss of value policies do not cover the same thing. A disability policy (commonly “permanent total disability”) means an insurance policy that protects an athlete from injury or illness that occurs during the policy period that prevents the athlete from permanently and continuously engaging in the sport. Whereas, a loss of value policy protects an athlete from injury or illness that occurs during the policy period that causes the athlete’s draft position to fall. In both policies, the insurance coverage requires that disability and/or loss of value be “solely and directly” the result of the injury or illness.

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The insurance carrier, in theory, has trained individuals who evaluate the athletes potential draft position prior to the season that is covered by the insurance policy and makes a determination where the athlete will likely be selected. Being that the NFL, NBA, and MLB now have rookie wage scales and slotted compensation, it is not difficult for the insurance carrier to make a determination of the compensation an athlete will likely receive. Typically, the amount of the policy issued is 50-65% of the athlete’s projected rookie compensation with maximum coverage in the amount of $10,000,000.00. For example, if an athlete’s rookie contract is scheduled to be $10,000,000.00, the policy will likely be for $5,000,000.00-$6,000,000.00.

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If a dispute arises, the Firm has the experience to help navigate the claims process and litigation, if necessary, against the insurer to recover benefits.