How Does NIL Affect College Sports Insurance?

The landscape of college athletics has undergone a significant transformation since introducing Name, Image, and Likeness (NIL) policies in 2021. These policies allow college and high school athletes to profit from their name, image, or likeness for commercial purposes while keeping their amateur status.

New policy changes that went into effect on Aug. 1, 2024, not only continue the expansion of financial benefits and opportunities for these student-athletes but also include the full implementation of healthcare coverage changes recommended in 2021. How do these new changes affect college sports insurance? Below, we’ll provide details about what you need to know.

The Impact of NCAA NIL Policy Changes on Injured Student-Athletes’ Medical Expenses

The NCAA has introduced its Two-Year Post Eligibility Insurance Program, which aims to support student-athletes beyond their playing days. The program applies to student-athletes at all schools in all divisions. The policy started on August 1 and provides:

• Up to $90,000 per injury, with no deductible, for injuries suffered from participation in an NCAA qualifying sport. The coverage extends for two years past when a student completes their college athletics experience.

• Student-athletes do not need to opt in for coverage. However, injuries must be reported, documented, and filed with the athletics department of the school at which the student-athlete participated when the injury occurred.

• This policy has a longer time frame than the traditional accidental injury coverage period.

• Up to $25,000 of the $90,000 available can be used for mental health services needed as a result of the injury.

The NCAA pays the policy’s annual $26 million plan premium.

Critical Protection From Career-Ending Injuries

These new benefits help the athlete focus on their future instead of worrying about medical bills while providing peace of mind and financial security from the high costs of medical treatment. (Note: According to the NCAA, this coverage does not replace the requirement for Division I schools and Division II and III programs that sponsor a Division I sport to provide medical care to student-athletes for athletically related injuries for two years after graduation or separation from the school.)

What If a Student-Athlete Is Injured While Participating in a NIL Event?

This program will cover student-athletes for injuries sustained while participating in an NCAA-qualifying intercollegiate sport, including injuries that occur at NIL events.

What About the NCAA’s $90,000 Catastrophic Cap for Student-Athletes?

The NCAA’s current catastrophic coverage remains the same for student-athletes during their college athletic experience. Injured student-athletes are responsible for medical expenses until they reach the $90,000 cap, after which the plan kicks in. Because of this, all student-athletes are required to have primary insurance to cover injuries up to $90,000.

Protecting the Gap With College Sports Insurance

Even with primary health insurance, student-athletes will still need affordable protection from out-of-pocket medical expenses if they are injured. For 2024, individuals must meet a $9,450 out-of-pocket limit and families a $18,900 limit before primary insurance plans kick in. Meeting these out-of-pocket expenses can have a huge financial impact on student-athletes and their families and take focus away from recovery. That’s why many schools work with an experienced college sports insurance provider like A-G for a program to meet their needs.

How College Sports Insurance Works

A-G’s flexible programs for college athletes ensure student-athletes have no gap in their personal coverage before reaching the catastrophic plan insurance deductible [$25,000, $35,000, or $50,000 for the National Junior College Athletic Association (NJCAA), $35,000 for the National Association of Intercollegiate Athletes (NAIA), or $90,000 for the NCAA]. The coverage has:

• Deductible options (fully insured, per claim, and aggregate deductibles)
• Choices of benefit periods
• Inclusion of pre-existing conditions
• Accidental death and dismemberment benefits
• Expanded coverage for overuse, repetitive stress, and overexertion injuries, and more

A-G also offers catastrophic injury insurance, participant injury insurance, and 24-hour student AD&D plans.

Make A-G Part of Your Team

A-G protects the students and student-athletes at more than 725 colleges and universities from the financial consequences of injuries. Pairing an A-G plan with the recent NCAA NIL policy changes helps ensure your student-athletes are protected from when an accident first happens through their recovery. With our flexible options, we can design a college sports insurance plan that meets your school’s unique needs.

Interested in a quote? Don’t hesitate to reach out. We look forward to speaking with you soon.