There is one certainty in baseball, change occurs often and quickly. While most organizations and clubs make plans for at least three years ahead, issues inevitability emerge. In 2020, the pandemic put increasing pressure on both the physical and financial health of baseball teams everywhere.
The result: upended schedules and large financial hits.
Even without a pandemic, planning in sports has been an ongoing challenge. In particular, player injuries can disrupt even the best programs. The speed of business in baseball requires flexibility in planning and meticulous attention to data.
Every year, player rosters change. Over time, training and coaching methods change, and a team's structure shifts fundamentally. Keeping up with the changes can be a daunting task.
As the pandemic took hold and Major League Baseball (MLB) adopted COVID-19 protocols, NFP adapted its own risk management approach in order to comply with or exceed these guidelines. For example, while the pandemic put restrictions on some procedures necessary for insurance carrier approval, NFP was able to use the clubs' historical data to fulfill these requirements.
Traditionally, baseball organizations have relied on historical data, as well as situational anecdotal information, to help them address such rapid change. Information on players or on past injuries can help teams understand that player's capabilities, the physical demands of the position they play and what player types can work best together.
By working with historical data and analysis of past injuries and player types, NFP's sports industry experts are able to quote and place appropriate insurance policies based on terms and pricing. The same kind of data that baseball clubs use to analyze injury histories and establish better player selection, training and contractual processes is also used in analysis of insurance policies.
Disability Insurance For The Win
Still, injuries happen. An injury that causes a player to be on the injured list for an extended period of time is still a player the club is contractually bound to compensate.
Fortunately, insurance brokers can deliver reassurance. NFP’s Sports and Entertainment Group solutions provide disability insurance products from trusted insurance carriers. Disability insurance gives MLB clubs a way to recover a portion of payments made under a player’s guaranteed contract.
Likewise, we stay on top of emerging trends, and we collaborate with clients to bring together strategic protection solutions that address present and future challenges. That’s important, particularly now. With the uncertainty looming over the seasons, clubs are looking for help in both understanding their positions and preparing for what may come. NFP continues to monitor those potential changes, including injury rates and types. With fewer games and a shortened spring training as well as less overall activity, we anticipate different patterns of injuries to emerge in the future.
Your Insurance Broker As A Team Player
Becoming an expert in sports takes years of experience and hard work that cannot be replicated in a classroom. That same kind of expertise is needed to underwrite sports disability insurance. Your broker needs to know as much about the sport their products are covering as they know about their own industry. That broker should also understand what drives your organization’s decision-making. They need to be acting in tandem with insurance carriers to ensure that all regulatory requirements that organizations are facing are being met by their policy language.
Changes in your baseball club’s roster, coaching or training can have a ripple effect on players’ physical health. As your organizational foundation changes, protection of your financial well-being should be part of that change. Disability insurance from an insurance provider that understands your industry delivers another benefit: peace of mind.
Work with us to proactively manage your risk, and keep your best and brightest glowing. Contact us to discuss your sports insurance needs.