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Anticipating the potential value of a multi-million dollar contract
as a free agent, an NHL player began to wonder, "What happens
if I become ill or get hurt before I can sign what should be
a $50,000,000
contract?" Working with the player’s agent and his insurance
advisor, HCC Specialty Underwriters was able to provide a Loss
Of Value policy to the player,
which protected his future value until such time as he signed that
fat guaranteed contract. Once the player was contracted to the
team,
the team used a High Limit Disability Policy underwritten by HCCSU
to cover its financial exposure to pay the player a guaranteed
salary
even if he suffers an illness or injury.
When NBA clubs draft their first round picks, they are automatically
obligated under the standard NBA Players Agreement to provide
the
player with a guaranteed three-year contract. So as soon as they
select a player, they have a substantial financial liability.
These
teams use HCC Specialty Underwriters’ Critical Asset Protection
(CAP) and High Limit Disability to assume the financial risks that
could
arise
from the
death, illness or injury of the player until the NBA League Program
disability and life insurance policies are in place.
When a shoe company’s success was tied to the good standing
of their athlete spokesperson, the risks became scary. HCC Specialty
Underwriters' Image Protection cover (otherwise known as Death
and Disgrace) assumed
the risk of the high-profile athlete’s behavior negatively
impacting the company’s bottom line. Some key risks where
the cost of production, potential recall of the product, legal
expenses
and commercial production costs. All of these costs and other irrecoverable
expense can be protected with our Image Protection insurance
program.
There is no question that celebrity has its price. When that price
involves extortion, kidnapping and ransom, the darker realities
of our world are brought into sharp focus. Top professional athletes
have become brands unto themselves and they need specialized
protection.
HCC Specialty Underwriters is routinely asked to provide Kidnap
and Ransom protection in addition to our High Limit Disability
policies
for athletes.
The
policy provides reimbursement for monies surrendered as either
a ransom or extortion payment and extends to all relatives and
guests
of the athlete. HCCSU can help arrange coverage to protect high-profile
individuals with our sister company, PIA.
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