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You got to wonder why these insurance companies are insuring some of these people. I mean they won't insure house in Florida and California, but they'll insure people that smash their heads into other people for a living?
It's because the premiums are stupid high. The article mentioned somewhere in the neighborhood of $1m to $4m on insuring $22m of a contract.
Many of these owners are billionaires, too. They wouldn't bother insuring if it weren't for the salary cap. Being able to get that money off the cap is actually more important than getting the money back.