Navigating Today's NIL Risk Landscape: What Advisors Need to Know

The Name, Image & Likeness (NIL) era has unlocked unprecedented earning opportunities for collegiate athletes - and with it, new layers of financial exposure for players, universities, and collectives. As you guide clients through this evolving environment, understanding how to manage and insure NIL‑related risk is essential.

Below are key considerations every advisor should keep in mind in 2026.

Protecting Individual Players: Looking Beyond the Current Contract

Even when an NIL contract appears strong, athletes must think beyond this season’s earnings. A career‑ending injury or critical event could jeopardize not only their collegiate income but their long‑term professional trajectory.

High-limit coverage such as:

• Permanent Total Disability (PTD): providing a lump-sum benefit if an athlete can never return to play.
• Critical Injury Riders: offering protection for catastrophic events that derail future earning potential.

These solutions help safeguard the broader earnings picture - not just what’s on paper today. For many athletes with pro aspirations or multi‑year NIL deals, PTD and Critical Injury coverage offer essential long-term financial protection.

Protecting NIL Investments One-Pager

How Universities & Collectives Can Reduce Exposure

NIL collectives and athletic departments have their own financial risks to consider - especially when donor funds, endorsement guarantees, and brand commitments are tied to an athlete’s continued performance.

While Catastrophic coverage remains an option, group‑based Temporary Total Disability (TTD) insurance is often more practical and cost‑effective. By spreading risk across multiple athletes:

• Underwriting becomes more favorable
• Costs become more predictable
• Coverage can be integrated into NIL agreements to protect institutional investments

TTD solutions can also help universities offset revenue loss when key players are sidelined for part of a season.

High Limit Coverage for Female Athletes

Why Roster Grouping Matters More Than Ever

One of the most overlooked strategies in NIL risk management is grouping athletes for collective coverage. If five players earn different amounts and only the highest earner is insured, the risk pool becomes skewed - and premiums follow.

By grouping players:

• Risk is distributed more evenly
• Coverage becomes more affordable
• The collective can establish a more stable, sustainable protection strategy

Roster grouping ensures the entire pool of talent, not just the top performers, has protection aligned with their NIL value.

PTD Case Study of NFL Player

Best Practices for Advisors Working in NIL

To help clients stay ahead of risk, advisors should:

• Assess future insurable income, not just current NIL earnings
• Consider PTD, TTD, and Disgrace coverage as part of a unified NIL protection strategy
• Secure coverage before high‑risk seasons
• Integrate disability coverage directly into NIL agreements
• Evaluate cross border implications for international athletes where applicable

These practices allow advisors to build comprehensive, forward‑looking protection strategies that keep pace with the rapidly changing NIL ecosystem.

NIL has created extraordinary opportunities, but also unprecedented exposures. By understanding the nuances of athlete income, institutional risk, and roster dynamics, advisors can help athletes, universities, and collectives protect the value they’ve worked so hard to build.

If you’d like support designing high‑limit coverage solutions or structuring NIL‑focused disability programs, the we are here to help.