Orlando Harmon
Dallas Cowboys quarterback Dak Prescott suffered a season-ending ankle injury in 2020, sparking conversations about his insurance coverage and economic prospects. Prescott's loss-of-value and disability insurance policies, worth over $50 million, protect him financially in the event of career-threatening injuries. The Cowboys' backup quarterback situation has been criticized as inadequate, and Prescott's contract negotiations have been influenced by his insurance and endorsement deals, giving the team flexibility in their discussions. Prescott's financial stability has allowed him to approach contract extensions without urgency, prioritizing fairness over immediate extensions.
| Characteristics | Values |
|---|---|
| Possibility of increasing insurance policy value | There is a possibility that Dak Prescott increased the value of his insurance policies after Patrick Mahomes and Deshaun Watson signed record-breaking deals for NFL quarterbacks |
| Insurance policy value | Prescott's insurance policies, along with his endorsements, are valued at more than $50 million |
| Insurance policy type | Loss-of-value and disability insurance policies |
| Insurance policy benefits | Prescott's insurance policies protect him financially in case of a career-threatening injury |
| Contract extension urgency | The urgency to extend Prescott's contract is low due to his insurance policies and endorsements |
| Cowboys' backup quarterback | Cooper Rush |
| Cowboys' insurance policy | The Cowboys' insurance policy for Prescott is considered weak |
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What You'll Learn
- Dak Prescott's insurance policies were worth over $50 million
- His insurance policies included loss-of-value and permanent disability cover
- Prescott's insurance policies meant he could afford to wait for a new contract
- The Cowboys' backup quarterback options were criticised
- Prescott's contract was $31.4 million guaranteed when his injury occurred
Dak Prescott's insurance policies were worth over $50 million
Dallas Cowboys quarterback Dak Prescott has endorsement deals and loss of value/disability insurance policies that, together, are worth over $50 million. Prescott's insurance policies protect him if he suffers a career-threatening injury. The endorsement deals are worth more than what some starting NFL quarterbacks are making and are in place for multiple years. Prescott's financial security has meant that he has not been in a rush to sign an extension with the Cowboys.
Prescott's insurance policies are worth more than $50 million, and his endorsement deals are also worth a significant amount. While the exact breakdown between the endorsements and insurance policies is unclear, ESPN's Adam Schefter has reported that Prescott feels financially secure thanks to these backup avenues of revenue.
Prescott's financial situation is unique for a fourth-round draft pick, who typically might be forced into accepting a team-friendly offer. Prescott's insurance and endorsement revenue, combined with his potential salary as a free agent, give him a strong negotiating position with the Cowboys.
In addition to his insurance policies and endorsement deals, Prescott has also made investments in other areas. He owns a significant stake in four Walk-On's restaurants in Texas and has invested in beverage maker GLOW. Prescott's contract with the Cowboys has also provided him with substantial income. In March 2021, he signed a four-year, $160 million contract with a $66 million signing bonus, the largest in NFL history at the time. In September 2024, he signed another four-year, $240 million extension, including an $80 million signing bonus.
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His insurance policies included loss-of-value and permanent disability cover
Dallas Cowboys quarterback Dak Prescott suffered a season-ending ankle injury in 2020, which raised questions about his financial security if he were unable to return to the sport. Fortunately for Prescott, he had taken out insurance policies that included loss-of-value and permanent disability cover, worth over $50 million. These policies would protect him financially in the event of a severe or career-threatening injury.
Prescott was performing on a one-year, $31.4 million guaranteed contract when the injury occurred, and while it was unlikely that he would be unable to return to his previous level of performance, there was a possibility. This possibility meant that Prescott's insurance policies were a prudent move, providing him with financial peace of mind during his recovery.
The loss-of-value insurance policy is a standard offering in the sports industry, with insurers typically offering one- to four-year policies regardless of the player's contract term. This type of policy is constructed based on data gathered and the threshold set by the insurance company. On the other hand, permanent disability benefits would only come into effect if Prescott were unable to play again, and these benefits, like loss-of-value benefits, are paid out tax-free.
Prescott's insurance policies, along with his multi-year endorsement deals, gave him financial stability and reduced the urgency of contract negotiations with the Cowboys. This situation placed Prescott in a unique position, allowing him to wait for a fair deal rather than being forced to accept a team-friendly offer. It is speculated that Prescott may have increased the value of his insurance policies after witnessing record-breaking deals for other NFL quarterbacks, such as Patrick Mahomes and Deshaun Watson.
While the specific details of Prescott's policies are not publicly available, it is clear that his insurance coverage included loss-of-value and permanent disability protection, providing him with valuable financial security during a challenging time in his athletic career.
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Prescott's insurance policies meant he could afford to wait for a new contract
Dallas Cowboys quarterback Dak Prescott suffered a season-ending ankle injury in 2020. At the time, he was performing on a one-year, $31.4 million guaranteed contract. Prescott's injury raised questions about his economic future, particularly if he was unable to return to full health.
Fortunately for Prescott, he had the foresight to take out insurance policies to protect himself financially in the event of a severe injury. These policies, worth more than $50 million, include loss-of-value and permanent disability coverage. Such policies are common among athletes, entertainers, and surgeons, who want to ensure financial stability in case of unforeseen circumstances. Matthew Vuckovich, an expert in insurance planning for high-profile individuals, estimates that Prescott was likely paying high six-figures, possibly over $1 million, in premiums for this peace of mind.
The substantial insurance coverage meant that Prescott could afford to take his time with contract negotiations. Unlike teammates who rushed to secure new deals, Prescott was in a unique position of financial stability, allowing him to wait until his contract was truly done before seeking an extension. With his economic security guaranteed, Prescott could focus on his recovery and return to the field when he was truly ready, rather than rushing back to maintain his income.
While the Cowboys considered their options for Prescott's future with the team, his insurance policies and endorsement deals kept him financially secure. Prescott's situation highlights the importance of insurance planning for athletes, especially those in high-risk sports like American football, where career-threatening injuries are a constant possibility. By investing in insurance, Prescott gained the flexibility to make decisions about his career without being driven solely by financial concerns.
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The Cowboys' backup quarterback options were criticised
The Dallas Cowboys have faced criticism for their backup quarterback options, with some expressing concerns about the team's preparedness in the event of an injury to their starting quarterback, Dak Prescott.
Prescott, who has been the Cowboys' franchise quarterback, suffered a season-ending ankle injury in 2020. This incident highlighted the importance of having a reliable backup quarterback. While the Cowboys have had trusted backups in the past, such as Cooper Rush, who backed up Prescott for several seasons, they have faced challenges in recent years.
In the 2025 offseason, the Cowboys signed Joe Milton III as their backup quarterback. However, Milton's performance in preseason games raised concerns among fans and analysts. His situational awareness was criticized, and some questioned whether he possessed the skills necessary for an NFL quarterback. The Cowboys' decision to sign Milton was seen as potentially risky, with some suggesting that their season could hinge on his ability to step up if Prescott were to suffer an injury.
The Cowboys were also criticized for their backup quarterback options in the 1990s. In 1991, they signed Cliff Stout as a backup, but he did not perform well. They then acquired Steve Beuerlein, who successfully stepped in when starting quarterback Troy Aikman was injured. However, this trade occurred halfway through the season, and the Cowboys were criticized for not having a quality backup from the outset.
The Cowboys' approach to backup quarterbacks has been a topic of discussion, with some arguing that the team should prioritize having a strong backup option to support Prescott. The team's contract negotiations with Prescott have also been influenced by the presence of other contracts and insurance policies, providing them with some flexibility in their decision-making.
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Prescott's contract was $31.4 million guaranteed when his injury occurred
Dallas Cowboys quarterback Dak Prescott suffered a season-ending ankle injury. At the time of his injury, Prescott was performing on a one-year, $31.4 million guaranteed contract. The injury raised questions about Prescott's economic future, as there was a possibility he might not regain his prowess as a quarterback.
Fortunately for Prescott, he had previously taken out insurance policies to protect himself financially in the event of a severe injury. These policies, worth more than $50 million, included loss of value and permanent disability insurance. Such insurance policies are standard in the sports industry, with insurers typically offering one- to four-year policies regardless of the player's contract length.
The value of Prescott's insurance policies may have been influenced by the record-breaking deals signed by fellow quarterbacks Patrick Mahomes and Deshaun Watson. While the exact premiums Prescott paid are unknown, they were likely in the high six-figures or slightly above $1 million per year.
The existence of these insurance policies gave Prescott financial stability and reduced the urgency of contract negotiations with the Cowboys. Even without a contract extension, his insurance policies and endorsement deals provided him with substantial financial security.
In summary, while Prescott's $31.4 million guaranteed contract may have been impacted by his injury, his prudent acquisition of substantial insurance coverage ensured that he was financially protected during his recovery and beyond.
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Frequently asked questions
Yes, Dak Prescott had insurance. Prescott had loss-of-value and disability insurance policies, as well as multiyear endorsement deals, that were valued at more than $50 million.
According to Matthew Vuckovich of The Gilbert Group, Prescott was likely paying high six-figures and possibly above $1 million in premiums for his insurance policies.
Yes, Dak Prescott suffered a season-ending ankle injury while playing for the Dallas Cowboys. He also missed nine games in 2024 due to a right hamstring avulsion that required surgery.
Yes, Dak Prescott's insurance policy appears to have covered his injuries. The loss-of-value and disability insurance policies protected Prescott in case of severe or career-threatening injuries.
