Many teams can't afford to buy Temporary Total Disability insurance or Permanent Total Disability insurance on all of its players. Therefore, they may only buy these coverages on several key players while self insuring their exposure for the rest of the team. Other teams may self insure this exposure on all of their players. But, what happens if more uninsured players than expected suffer injuries that put them out of action? This could have a disastrous financial impact on any team that self insures this exposure.

Team Stop Loss coverage can be a solution to limit a team's overall exposure to a reasonable level since it kicks in once a team's out of pocket disability losses exceed a certain predetermined limit. The premium cost for Team Stop Loss coverage is much lower than purchasing first dollar disability insurance on each player and it can protect a team against financial disaster.

Athletes are frequently celebrity spokespersons. However, just one mistake such as an arrest, politically incorrect statement, domestic issue with spouse, drug incident, etc. can destroy their positive image and marketability. You may incur costs to pull products off shelves; change packaging; discontinue print, radio, and TV advertising; or run apology advertising. All of these exposures are insurable.

It is not uncommon for teams or sponsors to offer contract incentives in the form of large bonuses for athletes who exceed certain predetermined high level goals or statistical benchmarks. Insurance can be purchased to fund these bonuses in the event the athlete achieves the goal.