The landscape of college athletics is undergoing a seismic shift with the rise of name, image, and likeness (NIL) rights. As student-athletes gain the ability to monetize their personal brands, a new era of opportunity—and liability—is expanding far beyond the athletes. In addition to the student-athletes, NIL stakeholders include universities, athletic conferences and organizations, sponsors, and the athletes’ families, among others. Whether the goal is to guard against emerging liabilities or protect the NIL revenue stream itself, stakeholders should consider both traditional and specialty lines of insurance. Here’s what you need to know.

1. What Are NILs?

NIL rights allow college athletes to profit from their personal name, image and likeness—essentially, their brand—while maintaining amateur status. This includes earning income through endorsements, social media, appearances and other commercial ventures. Ever since the US Supreme Court held in 2021 in NCAA v. Alston that NCAA member institutions were free to offer education-related compensation to student-athletes, doors have opened wide for athletes to engage in business opportunities that were previously off-limits, fundamentally altering the collegiate sports economy.

2. The House Settlement: A New Precedent

In May 2025, the landmark $2.8 billion settlement reached in House v. NCAA was finalized, reshaping NIL and revenue-sharing frameworks for college athletics. Often referred to as the “House Settlement,” it resolves multiple antitrust lawsuits and paves the way for direct revenue sharing between universities and athletes. Importantly, this settlement marks a turning point, signaling the NCAA’s acknowledgment of athletes as stakeholders in the multibillion-dollar collegiate sports industry.

3. New Precedent Breeds New Risks for Stakeholders

With new rights come new risks. The expansion of NIL rights and revenue-sharing models introduces complex liability exposures for all parties involved:

• Universities may face management and board-level liability for failing to adequately monitor NIL deals, ensure Title IX compliance, or for violations of the tax code that could jeopardize their 501(c)(3) tax exempt status.
• Athletes risk breaching contracts, violating NCAA or institutional policies, or becoming entangled in disputes over representation and compensation.
• Brands partnering with athletes must navigate reputational risks and ensure compliance with advertising and endorsement regulations.
• Families of athletes, often involved in managing NIL opportunities, may inadvertently expose themselves to tax liabilities or legal disputes if not properly advised.

And, critically for all of the above, consideration must be given to the potential for injury, academic failure, disciplinary suspension or expulsion and transfer, all of which stand to impair or cut off lucrative NIL revenue streams. Interested parties will want to take appropriate steps to protect NIL revenue should a disrupting event occur.

4. Insurance Solutions to Hedge Against Liability

To mitigate NIL-related risk, stakeholders should consider both specialized and traditional insurance products tailored for the NIL era. For example, NFP’s Sports and Entertainment Group offers a suite of coverage options designed to protect athletes, institutions, and affiliated entities, including:

• Permanent Total Disability (PTD) and Temporary Total Disability (TTD): Protects athletes’ future earnings in case of injury or illness.
• Loss of Value (LOV): Covers the financial gap if an athlete’s projected professional value declines due to injury.
• Critical Injury Coverage: Offers lump-sum benefits for catastrophic injuries.
• Group Disability Plans: Customizable for universities, conferences, or NIL collectives, these plans spread risk across multiple athletes and sports.

Traditional lines of insurance—such as directors and officers liability (D&O), commercial general liability (CGL), errors and omissions (E&O), and media liability—can also protect stakeholders against NIL-related liabilities. For example:

• CGL and media liability policies may provide coverage for claims arising from the advertising and use of an athlete’s NIL.
• E&O and D&O insurance can protect institutions and brands from allegations of missteps in negotiating or overseeing NIL agreements.

Insurance is not just a reactive measure—it is a strategic tool that enables stakeholders to participate in the NIL ecosystem with confidence and foresight. As the NIL era continues to evolve, look for the emergence of more specialized insurance products, as well as litigation surrounding the scope and applicability of both traditional and NIL-specific coverage.

Final Thoughts

The NIL era is here, and with it comes a new set of responsibilities. Universities, athletes, brands, and families must work proactively to navigate this evolving landscape. By understanding the risks and leveraging both traditional and tailored insurance solutions, stakeholders can protect their interests while empowering athletes to thrive both on and off the field.