As basketball fans across America wonder whether there’s going to be an NBA season this year, some players are not letting the lockout keep them off the courts. Alex Fairly, Willis’ sports and entertainment practice leader, talks to Risk and Insurance about insurance coverage issues arising during the lockout.
What if a Player is Injured in an Exhibition Game?
During the lockout, some players are filling their down-time with exhibition games. If there’s an injury, it’s a murky issue whether the league or the player is responsible. Fairly told Risk & Insurance Online that players are taking out individual disability insurance during the lock-out, but the promoters usually arrange the (often pricey) coverage during the exhibition. Says Fairly: “Disability can be very expensive. A couple of promoters have said ‘this doesn’t make sense.’ ”
Risk Management Less of an Issue for Teams
“Meanwhile,” says Fairly, “the teams are likely to shift their focus from risk management to expense management.” Because they are not playing games, their exposures have been dramatically reduced. However, with the revenue loss they need to keep a watchful eye on expenses in order to keep critical employees on board during this time.