Insurance does matter!
In this episode, we discuss the important of insurance cover in the world of sports. Matt Dewen, Director from Full-Time Cover insurance, covers all bases from; insurance for individual players from motor to career ending, as well as clubs and associations.
[2.53] Car Insurance
It is very difficult to insure young footballers. Main reason being, as they are their high earners in their 20’s, they tend to buy high powered vehicles which is the first red light flashing from insurance companies.
They then receive data driven results, stats wise - one third of professional footballers have a points on their licence, coming from speeding. Texting while driving, red light cameras, irresponsible driving etc
Where Full-Time Cover can help service footballers, is by working exclusively with the underwriters who understand the risks associated with professional footballers. Full-Time Cover will then work with the footballers on do’s and don’ts.
The level of detail the underwriter will look at: no claim bonus, experience with a high-powered vehicle, driving record, maps out journey from home to club.
Tips to help build footballers profile for due diligence to underwriters:
- drive smartly - don’t text and drive!
- planning ahead when driving – give yourself plenty of time getting to and from home and training grounds, avoid speeding and points on licence
- be level-headed – don’t post on social media while driving – underwriters do check social media channels!
[10.05] Fleet policy
As footballers generally have multiple cars, a fleet policy would be the best solution rather than having individual polices. A fleet policy can be anywhere from two policies upwards, it is beneficial for time and money and only having one broker to deal with.
Underwriters tend to look for in a motor fleet, are the various types of cars owned to work out the premium. Such as, a flashy high-powered car and more sensible car for driving kids/family around to carry out the mundane tasks.
[13.02] Insurance for home & contents
Insuring personal high valued items such as watches, earrings is not at the forefront of professional footballers’ minds nor is the information readily at hand on insurance of such items.
Broker/agent/wealth manager should really spend time educating the player on do’s and don’ts such as;
- Specified luxury items start at the £50k range, anything under this amount is classed as general contents insurance
- In some policies there is a training ground clause where items lost or damaged at the training ground are not covered
- Ensure you have contents insurance
- Certain items over a value – locked in a safe
- Don’t post on social media if you’re going away on holidays/leaving your residence for a period of time - if anything does happen, your premiums will go up
- You create an online persona which is your online footprint where information can be extracted – don’t post personal details
[25.46] Career insurance
Although injuries and career ending cover isn’t at the forefront of professional footballers, especially the younger professionals, it should be the first line of defence.
Career insurance works by receiving a lump sum pay-out, tax free in the event of an injury or sickness preventing you to fulfil your career. Lum sum is derived by:
- players age - younger play has more years ahead, more earning potential
- length of contract
- off the field earnings, such as sponsorships
- what country you trade in, UK’s legislation is more generous than across Europe
There are very limited cases where the club is involved in paying premiums on the players behalf. The player is responsible for taking out their cover themselves.
Premier league has a group life insurance policy which will cover any player in the premier league, where the family will be the beneficiary should someone die. The family would receive a lump sum benefit, that will be different depending on what league is played. The clubs will have a group policy which more so to protect their interests.
This episode was recorded on 28/08/2019
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The Pulse from Smith & Williamson
Sports & Media Show: Insurance does matter!
Broadcast on Smith & Williamson at 09:00, 16th of DECEMBER 2019
Available online from 10:00 on the same day .