Liverpool FC insurance coverage under scrutiny after Jota's fatal crash

By Michael Jones

July 3 - (The Insurer) - Insurance industry exposure to the death of Liverpool Football Club's Diogo Jota will be based on whether the club has purchased 24 hour personal accident cover with accidental death, multiple insurance market sources told The Insurer.

• Most clubs opt for catastrophic accident cover, not 24-hour cover

• Liverpool FC cover not expected to be triggered, senior source says

• Potential claim valuation based on contract, asset, or market value

Liverpool FC's Portuguese forward Jota and his brother died in a car crash in northwestern Spain early on Thursday, when their Lamborghini veered off the road and burst into flames.

Two senior sports insurance market sources said that whether Liverpool FC had cover for the death of Jota would likely be defined by whether it had purchased 24 hour personal accident cover with accidental death.

Most Premier League football clubs purchase personal accident cover in some form, one senior broking source speaking on the condition of anonymity told The Insurer.

They said that coverage purchased varied in terms of limits but also in terms of the content of what is purchased. Most clubs purchase catastrophic accident cover, which they said typically has a two- to three-person trigger. This cover is intended for events such as plane crashes or devastating weather events that could affect a significant proportion of a club's player assets.

Clubs can also purchase 24 hour accident cover that often includes accidental death cover. However, the senior broking source said that in the majority of Premier League clubs do not purchase this option due the product being seen as expensive.

While Liverpool FC does purchase cover in the market, this senior broking source said that, from conversations with Lloyd's and London Market insurers, they expect the club will have only purchased catastrophe cover, which would not trigger in this circumstance. Liverpool FC did not immediately respond to a request for comment.

In the event that Liverpool FC has triggerable cover for Jota, the valuation of the claim could be based on one of three different approaches: contract value, asset value, or market value. The first two are most common for Premier League clubs. One separate broking source estimated that, in the event that cover was in place, insured losses could be as high as $100mn.

Jota's death is the second significant car-related incident for a Premier League footballer within the last year, with Michael Antonio having to undergo surgery for a leg fracture following a road traffic accident in December.

One senior broking source said Thursday's events will see board rooms across Europe question whether their insurance cover would trigger from an event similar to this, which could trigger an increase in demand for the player specific personal accident cover.