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Athlete insurance in 2023. What is athlete insurance?

Athlete Insurance in 2023. What is athlete insurance?

From professional leagues to amateur clubs, all athletes understand the risks associated with their chosen sport. To mitigate the risks they face, athlete insurance is a must.

Athlete insurance, also known as sports insurance, is a broad term that generally covers a range of various policies available to protect sportspeople and health and fitness professionals.

Successful athletes take accountability for the liabilities they are bound to, both for their health protection and financial security.

Athlete insurance protects athletes, their assets, lifestyle, and career. Therefore, it’s essential for every sports professional. But how does it work?

In this guide to athlete insurance, we will cover what athlete insurance is, from what it covers to how it works.

Table of contents

  • What is athlete insurance?
  • Who needs athlete insurance?
  • What does athlete insurance cover?
  • What insurance do athletes need?
  • Common types of athlete insurance
  • Professional athlete insurance
  • Common claims and risks
  • Athlete insurance cost

What is athlete insurance?

Athlete insurance is an umbrella term for insurance policies that are combined to cover the risks that athletes face.

Overall, this insurance type is suitable for people in the sports industry and those in the health and wellness field.

Athlete insurance can provide protection for both the insured and third parties involved with the athlete.

Here is a brief introduction to who and what is covered by athlete insurance:

  • Directors and officers of clubs
  • Professional athletes and sports teams
  • Youth clubs, school teams, college leagues
  • Sporting equipment and club finances
  • Event organizers, coaches, board members
  • Bystander/fan injuries and third-party property damage

While no insurance policy includes all this coverage, there are policies that cover athletes for every situation. In fact, some policies cover one specific risk and specialize in it.

Who needs athlete insurance?

Providing insurance to athletes has become an attractive recruitment tool for organizations and sports teams.

The athletes are offered protection for their livelihood and reputation, not to mention their physical health.

When it comes to who needs athlete insurance, all professionals involved in sports assume unavoidable risks. From schools, colleges, both amateur and professional teams, health coaches and trainers, sporting venues, health clubs, and nutrition and fitness professionals.

Not only are you at risk as a sports professional, but your customers, club members, fans, and even your students could suffer injuries and property damage.

As such, you could be held liable for compensation claims and face a lawsuit.

Whether you’re a professional sportsperson or the organization representing a club, you should consider athlete insurance if you’re involved in the following sports.

  • Darts
  • Snooker
  • Motorsports
  • Ice Hockey
  • Horseracing
  • Boxing
  • Tennis
  • Swimming
  • Golf
  • Cricket
  • Football
  • Rugby

This list isn’t extensive, but it gives you an idea of the many sportspeople who can benefit from athlete insurance.

What does athlete insurance cover?

Whether you’re just beginning your career or you're an experienced athlete, professional sport is a demanding industry.

While a career-ending injury might be the last thing on your mind, you know the dangers you assume throughout your career.

Sports insurance can provide future financial security if your career ends early through injury or sickness. Moreover, you can protect your assets and livelihood with various other coverages.

You should also consider insuring your property and assets such as cars, home, or jewelry. Your assets and your health must be adequately protected to cover all bases.

Purchasing athlete insurance tailored to your lifestyle can reassure you and your family that your financial affairs will be in order if you experience any unforeseen circumstances.

What insurance do athletes need?

The coverage that athletes need will vary according to their chosen sport and their level of risk.

Most commonly, the three insurances that all top athletes buy are:

  • Permanent disability insurance
  • Temporary disability insurance
  • Loss of value insurance

Typically, the most important insurance for every sportsperson is permanent disability insurance.

Permanent disability insurance can provide financial security for athletes who can no longer carry out their sport due to permanent disability.

Further to that, because temporary injuries are just as common in sports, temporary disability insurance is also a popular choice.

Temporary disability insurance is commonly aimed toward professionals who get paid for entering and winning competitions, such as golfers and tennis players. For those individuals, being temporarily unable to play (and earn) can cause a substantial financial loss.

Additionally, loss of value insurance is one of the most essential coverages for professional players starting in their industry.

In general, these insurance types are the most important policies for a professional athlete and the most common.

Common types of athlete insurance

At a minimum, a comprehensive athlete insurance policy should cover injuries and illness (yours and third parties) – even if you are at fault.

In addition to that, consider insuring your assets with a customized plan.

Professional liability insurance

This insurance type is essential for most athletes. Professional liability insurance (or Errors & Omissions for sports organizations) can protect you against third party claims for injury and property damage that may result in legal action.

Sports league insurance

This insurance is general athletic coverage that protects leagues, teams, and clubs with general liabilities. Crime protection is one of its main aspects, and it also involves protection for inland marine, excess accident medical, and directors and officers.

Sports league insurance protects organizations from theft, embezzlement, and other crimes involving members of their teams.

Inland marine protection covers expensive equipment if anything should get damaged during transportation or storage.

Loss of value insurance

This coverage protects athletes who have sustained injuries or illnesses but will still perform. In other words, they are not disabled and do not need to stop playing.

Additionally, loss of value coverage can protect an athlete’s contract value from going below the limit. For example, suppose a young athlete is due to sign a contract immediately after their college career but they experience an injury that decreases their contract value.

Disability insurance

This insurance primarily protects the financial health of athletes from injuries that could result in disability and a significant loss of earnings.

Disability insurance can cover both temporary and permanent injuries. Permanent disability insurance will cover their earnings if they can no longer play.

In addition to that, disability insurance makes them eligible for a tax-free lump sum payout.

Contractual bonus insurance

This insurance is useful for companies who have partnered with athletes or sports teams.

Sponsored athletes or teams can be rewarded a contractual bonus for their level of performance. However, paying these bonuses can significantly impact a company’s profit.

Contractual bonus insurance protects both the company and the athlete from financial strain.

Career-ending injury

This coverage can cover risks related to your sport and needs.

Career-ending injury insurance protects you if an unexpected or routine injury occurs. This is a constant hazard you face as a professional when performing at a high level.

High-value property

Property is a valuable but vulnerable asset. Professional sportspeople need to have the right protection in place to cover all needs adequately.

You can create a customized package with most insurers to protect your health and assets in one policy. This includes your home and its contents, any second homes, and any homes you own overseas.

This can also extend to cars and valuable items you own, such as jewelry and antiques.

Professional athlete insurance

In addition to standard athlete insurance, professional sportspeople will need to consider additional insurance than most athletes.

If you make your primary income from performing a sport, you will be classified as a professional sportsperson in the insurance industry.

Whatsmore, living your life in the media spotlight can cause you challenges and comes with its own set of risks. This risk factor is especially true if you are young and wealthy.

College draft protection

Future professional athletes may decide to continue their studies rather than take early entry into the draft. Due to extending their years at school, there is a risk of suffering a career-ending disability during their final college years.

This coverage is available to ensure the value of a student’s future professional career.

Contract completion

The loss of a team member by disability puts the whole team in jeopardy. This can affect the team professionally and financially as the team must continue to pay the athlete.

Contract completion can cover the contracted compensation to the injured athlete, which lifts the financial burden of the team and organization.

Loss of endorsements

This coverage will protect athletes and teams at a time when they need legal defense.

Loss of endorsements could ensue in the event of a political statement, alcohol problems, drug involvement, public relations issues, etc. These issues can cause advertisers or endorsers to cut their sponsorship. This insurance type will cover such financial losses.

Cost of agents or managers

This insurance can protect athletes during periods of disability. The costs for continuing relations with agents and managers can protect the athlete’s value therefore, this coverage is essential when going through a period of inactivity due to injury.

High-limit death & dismemberment

An enormous financial burden can be placed on the surviving dependents of an athlete due to their death or dismemberment.

Many organizations provide benefits to families in the event of a tragedy, even for those with no life insurance.

This coverage can provide athletes with high limits to help ease the financial burden their family can face due to death.

Common claims and risks

Operating without adequate coverage is a risk in more ways than one.

According to research from the National Safety Council, here are some facts about common injuries.

  • The use of exercise equipment caused more than half a million accidental injuries in one year. This then ranked as the leading cause of issues requiring medical treatment.
  • Over 500,000 injuries were attributed to basketball in one year, closely followed by football and other team sports, including soccer, baseball, and hockey.
  • Swimming and biking made the list, with upwards of hundreds of thousands of injuries in one year.
  • Most injured people were teenagers or adults, but young children were also vulnerable during activities such as cycling and other sports.

While risk management for sports, health, and fitness normally foresees the potential for injuries, it’s also designed to consider other risks.

  • Some individuals part of organizations and teams may claim defamation and emotional or sexual abuse.
  • The personal equipment of athletes and their possessions may get damaged or stolen.
  • Some fitness professionals may be held liable for offering services, and advice said to have caused someone harm.

Most professionals participate in their chosen fields because they are passionate about the positive aspects of their careers.

Still, it’s important for everyone involved to remain aware of common risks and protect against them. That's where athlete insurance comes in.

Athlete insurance cost

The cost of athlete insurance will depend on numerous factors, including:

  • The type of sport you play or manage
  • Your details such as age and experience
  • The location you carry out your sport activities
  • The type of insurance required
  • Your estimated level of risk
  • Past and current claims history

Athlete insurance quote

The right athlete insurance can offer you peace of mind to continue enjoying your vocational career. In addition, you and your family will be protected from financial stress and worry.

With the right coverage, your insurance agents will help you defend against lawsuits and liability claims.

Whatsmore, good coverage offers organizations a competitive advantage when recruiting top athletes.

Whatever your needs, you should get a hassle-free quote to determine the best insurance plan for you.

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