An injured star in the 2008 Olympics may cost a country a chance at the gold, but the injury may cost the athlete’s pro team millions, according to the Insurance Information Network of California. Consequently, some teams are using insurance to protect their stars.
Many athletes in the Beijing Olympics play professionally for teams around the world, IINC explained. These professional teams insure athletes for injuries not only for regular season matches, but for international competition as well.
“With millions of dollars and other currencies at stake, professional sports cannot compete without the financial security provided by insurance,” said Candysse Miller, IINC executive director. “But the real problem is teams that lose star players could be left footing the bill.”
Teams can benefit from salary coverage, which allows them to sign replacement players without overburdening their payroll,she said. Policies for athletes, meanwhile, include coverage for the loss of future earnings, the added costs of marketing an injured player and even the loss of endorsements.
In the United States, policies for professional athletes typically costs 2 percent to 3 percent of the athlete’s salary. Factors that contribute to insurance prices are the player’s age, sport and position, history of injury and the amount of expected game time, IINC indicated.
While some Olympians are insured for themselves and their respective teams, many Olympic athletes compete as individuals and earn their income primarily from endorsements. For those athletes, too, insurance is available to protect their potential earnings from future endorsements.
For more information, visit www.iincspots.com.