If David Price’s elbow goes, it’s possible the Red Sox could recoup some of their investment via an insurance policy — if they indeed took one.
They don’t usually like to, as Red Sox president Sam Kennedy explained on the CSNNE Baseball Show podcast.
“The cost-benefit usually isn’t there. It’s incredibly expensive,” Kennedy said of insurance policies. “And there’s certain things that have to trigger the payment vis a vis the player when they get hurt. So, it typically doesn’t make sense.
“On some occasions it does, but it’s usually too costly and clubs don’t often insure big contracts because it’s hard to recoup based upon how many days the guys are on the DL so on and so forth. There’s a reason why the insurance business is a very profitable industry.”
Kennedy likened the insurance policies to gambling.
“It’s like walking into a casino, and saying, well, how did they build this place?” Kennedy said. “Well, they didn’t build it with your winnings. It’s something that we don’t have a policy either against it or for it, but we’ve looked at it in just about every case or occasion and most times we walk away and we’ve not done it.”