I recently came across an article about a professional athlete who was driving his SUV and collided with another car. The woman driving the other car suffered neck and back injuries.
This story is not particularly noteworthy, except for one fact. The athlete’s liability insurance limits are a minimal $25,000 (in Connecticut drivers are required to maintain a minimum of $25,000 in liability insurance).
The athlete’s insurer has offered up the $25,000 policy limits to settle the claim of the injured woman. However, she claims that her claim is worth much more in light of her injuries. The athlete’s lawyer says the woman is trying to extract money from his deep-pocketed client; and the woman’s lawyer maintains that the $25,000 offer is an insult. Due to the athlete’s minimal insurance, any settlement or judgment over $25,000 will have to come from the athlete’s pocket.
The obvious lesson is to purchase sufficient automobile liability insurance. But there is another lesson for the athlete – surround yourself with professionals that can help you avoid such costly, not to mention embarrassing, situations. Often times, an athlete needs more than just an agent. An athlete should engage other professionals, such as a lawyer, accountant and financial planner to provide the best possible advice and to ensure that something as simple as automobile insurance doesn’t fall through the cracks.
There’s much more to it than that. Athletes today have about as much basic life experience as a high school sophomore because they’ve been distracted by their future careers for so long, and had so many things done for them. Pros today need mentors in the cities where they live; rookies often get advice from the NFL in the symposiums, but as evidenced by the poor behavior of players like Kenny Britt and Adam Jones, the message doesn’t always go in. I would like to see a network of volunteers (I would be at the front of the line) who help out the young players when they reach the professional stage, advising them about the basics like bank accounts and insurance like most people do. They could also help them see that you don’t need to be in the club til 4am with you 10lb gold chain and an entourage of 20 to have fun in a major city.