Professional Athlete (CONTRACT PAYMENTS) Insurance

Participation in sport results in risks which are unique to that industry; insurance is a product which plays an important role in managing those risks.  However, an insurance policy which has been written predominantly for a retail business or a factory, for example, will not necessarily be appropriate for a sporting body.  It is extremely important that insurance purchased by a sporting organisation is specifically designed to cover the inherent risks of  that sport.

OAMPS Laser’s role as risk management advisers and insurance brokers is to,  in association with the sport, identify the risks to which the sport is exposed and determine how these risks are best managed.  Where it is determined that an insurance safety net is required to help manage an identified risk we determine the insurance wordings which are appropriate to assist in this regard.  This can involve tailoring the insurance wording to fit the requirements of the sport rather than purchasing an “off the shelf” product.

Insurance which protects the earnings of professional athletes should be considered as part of the program.

Contract Payment Insurance (Loss of Income as a professional athlete) may be taken out by the individual athlete or by the sporting organisation.  Such insurance provides protection against financial loss as a result of a player losing income earning capacity as a result of injury.

It is possible to insure against financial loss due to permanent injury which ends the athletes career in the sport, or to insure against temporary disability preventing participation for a limited time only.  With this type of policy it is usual that the cover needs to be designed to meet the specific requirements of the athlete or organisation.

It is important to note that insurance  terms, conditions and exclusions vary from insurer to insurer.  It is extremely important that the policy benefits and exclusions are understood and considered carefully in making a decision on the purchase of a policy.  Expertise is required to ensure that the appropriate cover is provided, therefore professional advice is essential.  The importance of reading and understanding the policy document, giving particular attention to the exclusions, cannot be overstated.

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