Are Christiano Ronaldo's Legs Really Insured?

When one hears a headline that Jennifer Lopez's gluteus maximus or David Beckham's face is insured for tens-of-millions of dollars skepticism naturally arises.  How does someone value that? And can insurance companies actually insure for these things?

There are a few key tenets that need apply in order for insurance to be written.  

  • It cannot be a speculative risk, meaning that a risk has both the possibility of a gain and a loss such as a game of blackjack.  It must be a pure risk which involve only the possibility of a loss.
  • It must be unexpected. 
  • The loss must be calculable

According to a 2013 report, Chritiano Ronoldo had his legs insured for 103 million Euros.  This insurance policy qualifies because there is pure risk, the worth of his legs are directly tied to his contract and an injury would be clearly unexpected.  In the event of a catastrophic accident while playing soccer he would be covered under a workers compensation policy.  If the career ending injury were to happen off the field, its hard saying if his legs would be covered.  Inferring on this article- it is likely that this is a workers compensation policy since the policy is through the club.  It's doubtful that he would be payed 103,000,000 Euros if it happened in a car accident or shark attack, but without seeing the insurance policy we can't be too sure.

As for J-Lo's backside...doubtful. 

How Independent Insurance Agents Quote

As independent insurance agents we have access to both direct writers (i.e. Progressive, Travelers) and insurers that work exclusively through agents (i.e. Cambridge Mutual, Vermont Mutual).  Getting insurance through an agency will give you more options, therefore making each insurance company more competitive for your business.  When someone is seeking insurance each insurance company examines the risk levels and gives a quote based on risk and value assessment.  In order for insurers to move the process along to ensure coverage as quickly as possible the initial assessment and quote given is based on the information given directly by the person seeking insurance.  Once someone agrees to a policy the insurance companies will take a deeper look at value assessments provided by the insured via tax records and any other available public records.  Insurance companies make their final value assessments based on public records. So on occasion you will see an increase or decrease in your coverage which will be reflected in a change in premium due from the original quote.