FAQs
Basics
Coverage that can pay a lump sum if a career-ending injury prevents an athlete from competing, based on documented NIL/endorsement income and underwriting.
No. We’re sport-agnostic and gender-inclusive. If an athlete has real NIL or endorsement income—and we can document it—we can evaluate coverage options, whether they compete in a major revenue sport or a smaller program.
Protection that helps if an injury or illness materially reduces a prospect’s draft position or contract value, subject to medical review and carrier terms.
Before the season or key evaluation periods, when NIL deals and projected earnings can be documented for underwriting.
A “Permanent Total Disability” injury is determined by an orthopedic surgeon, and usually involves surgery within a specified time frame that prevents an athlete from competing again in their respective sport. If an athlete attempts to compete after their PTD, they could forfeit their lump sum payment from the insurance carrier.
Eligibility, income, and policy changes
Income is based on NIL offers from schools, as well as earnings from Collectives, outside endorsements, and outcome sources of realistic income. In some cases, NIL deals have ‘incentives” built into them, and those incentives can also be factored in. Earnings can also include projected future income as a draft pick in a professional league. Underwriters would use a consensus of projections to determine what that salary range may be, and whether all or part of it is guaranteed. Our financial experts can help structure an estate plan to minimize or delay tax liabilities.
Each policy is a year-to-year plan and will be re-evaluated and underwritten each season. In some cases, if an athlete has an exceptional year, their NIL deal may increase, and the amount of coverage may need to be increased. In some circumstances, an athlete may not live up to their expectations and their NIL income may decrease, thus forcing the insurance carrier to reevaluate the amount of projected income to insure.
It is inevitable that NIL money migrates to the high school level, and indeed, in some cases, it already has. As an enticement to top programs looking to attract talent, high school “collectives” could pay the premiums for their top athletes to ensure that their future income-generating endeavors are guaranteed against injury. It can be used as a recruiting tool to entice highly regarded athletes to commit to a top-level program.
Coverage can follow an athlete into college, but at that point it is going to be up to the athlete – or their school, or their representative, or their family – to pay the premium to continue coverage. However, at that point, the athlete should be able to use NIL earnings to pay the premiums to protect their future.
Draft protection specifics
In most cases, it is impossible to pinpoint where an athlete will be drafted unless they are the top pick in the draft. However, it is possible to predict the range where an athlete will be drafted, and the corresponding salary slots for that range and that particular position. Draft Protection ensures that an athlete is compensated if an injury or illness forces a team to draft that athlete lower than they were originally projected.
All Permanent Total Disability policies have riders and endorsements that can strengthen an athlete’s compensation. For example, an athlete can not only get Draft Protection, but also get a Critical Illness rider to protect against injuries that can end an athlete’s season, but not necessarily their career.
Institutional coverage (schools vs. collectives, DD&D)
Schools and collectives are separate entities with different obligations. They also may have different assets, a school’s amount determined by the NCAA, and a Collective’s determined by the party running the Collective. Policies are tailored to each entity’s exposures and needs.
Only where duties are defined in a way that supports that definition. If not, we adjust terms to reflect the actual obligations.
“Any act, conduct, or behavior by the insured which results in public disrepute, scandal, or ridicule, and which causes the insured to be unable to earn income from their occupation or profession.”
Single-event coverage for schools
Yes. Many institutions pair program-level DD&D with one-game catastrophic coverage for marquee events.
When a school knows in which, for example, Bowl Game, they will be participating, and which athletes stand to potentially lose future income if they are injured in that game, that is when a school should conside single-event coverage.
Schools can purchase PTD, Critical Illness or Draft Protection coverage to entice its top players to participate in a game that they otherwise would not play in for fear of injury.
By submitting, you agree to our Terms of Service and acknowledge our Privacy Policy.
Licensed in all 50 U.S. states. Coverage subject to underwriting and availability.