It used to be that very few people knew who the president of professional sports team or the athletic director at a college powerhouse was. The insatiable thirst for sports news and the explosion in social media changed all that, meaning that the athletes weren’t the only ones who had to worry about their reputation.
Jim Convertino, the Director of Professional Athletes & Entertainers Insurance Solutions at McGowan PAE, saw this coming. Over the last few years, Convertino and Associate Director Jani Memorich have been closely watching the industry in an effort to understand developing trends and potential solutions. Given this climate, we found this to be a good time to visit with Convertino for a Q&A feature.
Question: From a personal insurance coverage standpoint, what unique exposures does team owner or other front office personnel have compared to what a basic insurance policy may offer?
Answer: Team owners and front office personnel have far greater exposure than most people due to their high profiles and professions. Their often-daily presence on social media, while an important piece of their team branding and marketing, also makes them an easier target for lawsuits or frivolous claims. We often see many of these individuals with the same insurance companies and coverages they had in their teens or when just starting out in business years ago. Unfortunately, the coverages they had at that time no longer provide the protection they need now such as Personal Injury coverage (Libel and Slander) or having the proper liability limits to match their increasing exposures.
Q: Are there any developments or trends that have heightened the need for proper insurance coverages?
A: With the explosion of social media, not only are team owners and front office personnel more well-known and recognized, their families are also subject to greater liability exposure than ever before. People now know where they live, where they are and what types of autos they drive. Sadly, they have become easy targets for anyone looking to make a name for themselves with a cellphone camera or looking for confrontation. Anything now said or done can easily “offend” someone. If the team owner or front office personnel does not have the proper insurance coverages in place, they can lose a significant portion of their wealth unnecessarily in the event of a claim or lawsuit. We have recently seen numerous claims against our clients by people looking to make a quick dollar and gain some social media exposure. Without the appropriate coverage, some of these claims may not have had any insurance coverage.
Q: How does McGowan PAE’s service model fit their profiles and exposures?
A: It’s imperative our clients become educated that insurance is not the commodity our industry portrays it to be with the current commercials we all see on TV. It is an integral part of their financial portfolio and something that should be annually reviewed before a significant claim occurs. Our PAE Practice is specifically designed for these high-profile individuals and their lifestyles. Our clients call only my cell phone for any related insurance issues or claims at any time, including evenings or weekends. They are not calling a service center or getting a voicemail hoping for a call back after business hours. Our unique service model is specifically designed to simplify our clients’ entire insurance program no matter how many states they have property in. Since we are licensed in all fifty states, all of their coverages can remain with us versus having to use multiple insurance brokers in different states.
Q: How does your client know what is right for him or her?
A: As an independent insurance broker, we work with multiple carriers to ascertain the appropriate coverages and offer our recommendations. We always offer options for our clients to discuss and review. We examine our clients’ lifestyles along with the extent of their exposures, such as how many homes do, they have, do they have watercraft, children of driving age, do they travel abroad, do they entertain, etc. All of these factors play a part of our recommended coverage summary. Once their insurance program is put in place, we simply review it every year, offer options for their consideration and make sure any changes are discussed and addressed from a liability exposure standpoint.
Q: How does McGowan PAE stand out in the insurance industry for these types of high-profile individuals?
A: We strive as a team to change the perception of what we are and how we can protect their assets and their families. Many of our clients appreciate our specialization and thorough knowledge of their exposures. We earn their trust and want them to expect and demand the level of service we provide on a daily basis. I am especially proud of our service team of Client Consultants and our Associate Director, Jani Memorich, who specializes in providing coverage for our clients’ Foundations, special events and commercial ventures. We constantly assess our clients’ exposures and proactively advise them to update their coverages and offer additional solutions.
