I would think it's easy money for insurance companies and they would be willing to write these policies for every college athlete. I assume the policy language is pretty specific as to claim amounts and have plenty of exclusions to protect the insurer. I expect it's not easy to collect on a claim.I think you read it correctly. I doubt its commonplace at most schools. But schools like Duke, KU, UK, and UNC probably all do this with their top projected OAD players. Might even be in the recruiting pitch.
The insurance company has to have a pretty strong belief the insured player is going to be drafted, to make it worthwhile for all parties. That alone limits the pool quite a bit.
I hope SU would do this if we ever land an elite recruit again, but who knows. Maybe it would come down to a player asking for it.
I was actually watching the local sports news on ABC 11 here in Raleigh last night and they were talking about the either 8 or 9 million dollar insurance policy on Zion. They were saying it was fairly common now for the school's to pick up the bill for college football/basketball stars insurance policies. They referenced that NC St had a similar policy on Bradley Chub in his last season at State.I see Duke is paying the $90,000 - is that standard practice among colleges? Does SU do things like that? I never knew the school could take out and pay for the policy - or did I read that wrong?
I would think it's easy money for insurance companies and they would be willing to write these policies for every college athlete. I assume the policy language is pretty specific as to claim amounts and have plenty of exclusions to protect the insurer. I expect it's not easy to collect on a claim.
So Duke took out policies on the entire Fab 4 this year? The football policy must be much more expensive.
This explains everything.I think you read it correctly. I doubt its commonplace at most schools. But schools like Duke, KU, UK, and UNC probably all do this with their top projected OAD players. Might even be in the recruiting pitch.
The insurance company has to have a pretty strong belief the insured player is going to be drafted, to make it worthwhile for all parties. That alone limits the pool quite a bit.
I hope SU would do this if we ever land an elite recruit again, but who knows. Maybe it would come down to a player asking for it.
I didn't say they were common, just that insurers would write as many of these as they could. Also, while draft position is a reliable price setter, but where it gets messy is proving where a player would be drafted and how much money he lost because of the injury. Insurance companies are pretty savvy.The draft is an important peice because it provides an established, reliable way to assess a player's value. It also provides a measuring stick.
Players unlikely to get drafted don't have much reason to take out a policy and most know the draft isn't in their future.
Insurers are of course making money on these deals, but I'd doubt they're super common.
I didn't say they were common, just that insurers would write as many of these as they could. Also, while draft position is a reliable price setter, but where it gets messy is proving where a player would be drafted and how much money he lost because of the injury. Insurance companies are pretty savvy.
glad for his sake that he is covered . . . but h.t.h. is that not considered an extra benefit unavailable to normal students?I see Duke is paying the $90,000 - is that standard practice among colleges? Does SU do things like that? I never knew the school could take out and pay for the policy - or did I read that wrong?