UFC faces huge insurance bill in NY

State aims to protect fighters from severe brain injury

Insurance News

By Allie Sanchez

The millions of dollars the UFC spent lobbying to get mixed martial arts (MMA) legalized in New York will not be the only dent that promotions in the state will make in its pocket book.

New York has a $1 million brain injury insurance provision that is unique to the state, which will require UFC to pay up $1,675 per athlete for the policy, promotion officials said. This will amount to a tab worth almost $45,000 for its UFC 205 event in Madison Square Garden, which has 13 fights scheduled among 26 fighters.

The policy, approved by the state government, will be written and sold by AIG.

These payables do not include the typical $50,000 medical and $50,000 accidental death insurance policies. This means that total expenses for UFC 205, which is the promoter’s first event in New York, could add up to $50,000.

UFC expects to pay up for the same amounts for UFC Fight Night on December 9 in Albany. That specific card with 12 fights and 24 players is expected to ring up $40,200 to cover the traumatic brain injury insurance premium.

New York Department of State spokesperson Laz Benitez told reporters that the New York State Athletic Commission (NYSAC) is requiring the insurance policy for safety reasons, specifically to assure financial coverage should an athlete sustain a debilitating brain injury.

“NYSAC’s primary objective is to ensure the safest environment for combative sports in the nation so that combat athletes competing in New York State incur the fewest and least severe injuries possible,” Benitez told reporters.

However, critics of the provisions say the insurance policy will not necessarily prevent injuries, but will just acquit promoters and the state from liability if a brain injury occurs.
 

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