Are athletes in Malta protected and to what extent? : a study of the support available through sports insurance cover

Abstract

“As salaries in professional sports have soared over the past few decades, so has the price tag associated with the risks inherent in such strenuous physical activities. Athletes in sports like golf and tennis often buy their own insurance, though those with recurring conditions have trouble getting coverage. Sports teams that offer guaranteed contracts face huge losses if stars are injured, even only temporarily. As a result, the economics of the business are now shaped by insurance markets just as they are by TV contracts or ticket sales” (The Economist, 2013). The study proposes to address whether athletes and their respective coaches are protected both locally and when abroad; through sports insurance cover and to what extent. Furthermore, by conducting primary and secondary research, it aims to evaluate the burden of the local insurance companies taking on the risks of athletes undergoing injuries. Sports insurance is a relatively new concept, where an insurance policy is issued for an athlete; covering injury costs, travelling costs and any sports accidents that may occur. Some policies may also pay out for liability protection and personal benefits of sports teams as well as coaches and equipment. From this aspect, sports insurance is very established worldwide. Training a sport is beyond the sole act of using your abilities to reach your goal or pushing your body through fatigue. Getting involved in a sport effects athletes physically and in a social manner. A sports injury occurs during the exercise resulting from accidents or using improper equipment, poor training practices, lack of conditioning or insufficient warm-up and stretching. Overseas travel is an essential part of being an athlete - it's not quite a business trip yet the right travel insurance cover is critically important. Professional athletes also tend to work alongside a dedicated team of professionals in their hunt for glory so why not be covered under a sports insurance policy and have peace of mind? “There are numerous economic aspects of sports including direct expenditures or income where money flows can be observed. Indirect economic effects such as societal costs cannot be assessed by observing money flows but can only be estimated with the help of theoretical constructs”. Studies show that “team ball sports account for about 40% of all hospital treated sports injuries” (FootBalance, 2012) in Europe with the highest sport ranked being football. Pro-cyclists participating in events like the Tour de France are amongst the hardest of all athletes to insure, but that doesn’t deter Lloyd’s specialist underwriters (Lloyd’s.com, 2014). Other events like the Boston Marathon bombings have also forced the insurance markets to face rise in costs. Through interviews to the companies’ personnel, information was gathered to understand how viable it is to cover athletes in Malta and to what extent. Furthermore, questionnaires were distributed to various athletes with the intention to know their needs with respect to insurance.