By Jim Convertino, Director of PAE/Britton Gallagher
With the NFL Draft and free agency recently completed and the NBA Draft coming up in June, many players have or will soon have a significant increase in their property and liability exposures. All players, whether rookies or veterans, become targets for various lawsuits due to a nightclub incident, automobile accident, libel, slander, hosting a charity event through their Foundation, their websites or making a personal appearance as an additional source of income.
It is imperative to provide, as part of your clients’ financial and legal representation, a complete personal, disability and commercial insurance review as an integral piece of their financial plan. In many cases, professional athletes carry the same insurance coverages they had when they were in high school or college. Their liability coverage may have been appropriate at that time but with their ever increasing profile and wealth, their insurance coverages are most likely far too low for their new exposures.
Coverages for your clients’ homes, jewelry, awards, automobiles and watercraft should be reviewed at least annually in order to ensure their coverages are updated. This ultimately reflects back to the attorney and advisor if there is a claim that isn’t covered properly or your clients weren’t aware of coverage options which may have saved them a significant portion of their personal wealth. It is imperative to work with an insurance broker who understands your clients’ unique exposures and is knowledgeable of their profile. The insurance broker should become an asset to the attorney and advisor in fully protecting the client.
Unfortunately, there have been many lawsuits involving professional athletes where their insurance coverages played a significant role in dramatically reducing their out-of-pocket expenses. If your clients do not have the proper insurance coverage, they can lose a significant portion of their wealth in the event of a claim or lawsuit. They, unfairly or not, will blame their attorney or advisor. Your clients’ family members also pose a liability risk if they are driving an automobile in the professional athlete’s name. It’s important to minimize this liability exposure as well with the proper insurance coverage.
Understandably, many attorneys and advisors do not have the confidence in finding an insurance broker who understands the business of sports and is willing to provide the type of service required to meet their clients’ extraordinary demands. Insurance is often seen as a commodity. With the proper insurance advisor as a partner, your clients will receive the appropriate insurance program as part of your overall service model.
