NFL player will collect $3M from insurance policy against contract: report
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Chance Warmack, an offensive lineman for the Philadelphia Eagles, will reportedly be the first NFL player to collect on a loss-of-value insurance policy.
A loss-of-value policy pays athletes if their future salary doesn’t meet a predetermined threshold. These policies are often purchased by college athletes to protect against injuries, usually in the year before the draft, according to the NCAA’s website.
Warmack took out insurance that would kick in if his second NFL contract paid less than $20 million, according to an ESPN report. The 26-year-old, who was drafted 10th overall in the 2013 NFL Draft by the Tennessee Titans, signed a one-year, $1.5 million deal with the Eagles last year.
ESPN reported Thursday that Lloyd’s of London informed Warmack this week that he will receive the maximum payout of about $3 million.
Warmack’s brother, Ronnie Kaymore of the New Jersey firm KBM Sports, told ESPN that Warmack would be the first player to collect on a loss-of-value policy but didn’t confirm details of the terms.
The player’s agent, Schwartz & Feinsod, didn’t immediately respond to a request for comment.
At least eight college players have received insurance money from loss-of-value policies in the past decade, ESPN reported.