The state of New York has found an insurance carrier to help underwrite policies for bigger events, according to Dan Rafael of espn.com.
The reason is because of new insurance regulations for combat sports in the state that went into effect on Sept. 1, as part of the law that legalized mixed martial arts in New York. When the law was implemented, boxing promoters were left without any available insurance policy to buy to cover the events, leaving the sport dead in New York since the last card took place on Coney Island in Brooklyn on Aug. 21.
New York’s Department of Financial Services, the state agency that worked with the insurance industry, has approved a policy that the United States Fire Insurance Co. is getting set to make available to promoters. It is expected to be in place in time for the first card on the commission’s schedule to take place. That is the card co-promoted by DiBella Entertainment and Mayweather Promotions and headlined by the Badou Jack-James DeGale super middleweight title unification bout on Jan. 14 (Showtime) at Barclays Center in Brooklyn.
“It is our understanding that a combat sports insurance policy has been approved with an insurance carrier [United States Fire Insurance Co.] and will soon be made available to promoters,” NYSAC spokesman Laz Benitez told ESPN on Tuesday.
“There will be insurance for the Jan. 14 card at Barclays Center, but this is not solving the long-term problem,” promoter Lou
DiBella said. “It’s potentially phenomenally expensive. I don’t have all the final details, but my understanding of the insurance is that it would be available for the Jan. 14 card and will allow the highest-level fights to take place, but it does nothing to help the club shows or any grassroots New York boxing to take place. This is a temporary fix. I’m looking for a permanent fix.”
“This policy will allow the biggest fights to take place, but it does nothing to address the more serious problem of club shows or small regional television cards,” DiBella said. “You’re not going to see a ‘ShoBox’ card in New York with this insurance policy. I’d say 90 percent of the shows that normally happen in New York won’t be possible to take place under this policy because of the cost.
“Why would a promoter come to New York for that cost when they can go elsewhere for a lot less money?”
