Olympic Athletes Require World Class Safeguards

With Some Olympic Athletes’ Contracts in the Millions, Teams Use Insurance to Protect Their Stars

An injured star in the 2008 Olympics may cost his country a chance at the gold, but his injury may cost his pro team millions.

Many athletes in the Beijing Olympics play professionally for teams around the world. 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, executive director of the Insurance Information Network of California. “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. 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 two-to-three percent of their salary. Factors which contribute to insurance prices are the player’s age, sport and position, history of injury and the amount of expected game time.

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 these athletes, too, insurance is available to protect their potential earnings from future endorsements.

The Insurance Information Network of California is a non-profit, non-lobbying insurance communications association dedicated to helping the public understand insurance and risk management issues. For more information on this and other related subjects, visit www.iinc.org. Consumer tips and advice are also available on the podcast, IINC Spots, at www.iincspots.com.

Contacts

Insurance Information Network of California
Tully Lehman, 925-969-2223