The University of Oregon has settled a little insurance squabble over money it lost to former head coach Chip Kelly and members of Kelly’s coaching staff following the 2012-2013 season. According to a report from The Register-Guard, Oregon has accepted an insurance payment in the amount of $242,000 to put the issue to rest.
Oregon paid an insurance premium of $490,000 for a policy that was expected to cover all costs of bonus money to Kelly and his assistants following the 2012-2013 season, which was a reward for guiding the Ducks to a victory in the Fiesta Bowl that season. Following Oregon’s 2012 season, the school paid Kelly and his assistants a total of $688,000 in bonus money. When filing a claim to get a reimbursement for the full amount of bonus money paid, the insurance company refused to pay.
It all comes down to specific wording in the policy, which anyone who has dealt with an insurance issue can probably understand. Essentially, the insurance company refused to pay because they felt the insurance policy they opened with Oregon only focused on maximum bonuses, which would have come had Oregon played in and won the BCS Championship Game that season (Alabama steamrolled Notre Dame that season). Believing they should have been covered, the University of Oregon sued the insurance company for a breach of contract. Two other insurance companies managed to obtain the policy and will split the payout to Oregon as a result.
Kelly left Oregon to coach the Philadelphia Eagles in the NFL in 2013. He brought a handful of Oregon assistants with him as Mark Helfrich took over as head coach of the Ducks. Kelly lasted three seasons in Philadelphia before being let go. He is now the head coach of the San Francisco 49ers.