Broker giant Marsh has teamed up with the Rugby Football Union (RFU) to provide enhanced insurance protection for players of all ages.
The new cover tops up the RFU's basic scheme of compulsory accidental death and permanent disability insurance at club level, which offers a maximum benefit of £375,000.
Marsh's additional voluntary insurance brings the RFU cover for individual players up to £1m for paralysis or serious injury which prevents further working.
Terry Burwell, RFU operations director, said financial constraints meant that not every club could afford its £1m level of preferred cover.
He said the Marsh scheme would overcome this hurdle.
David Griffiths, Marsh Sports group associate director, said: "Marsh has worked with the RFU to provide additional insurance cover needed by clubs and individual players involved in the game."
He added that its cover would enable players and parents of younger players to benefit from more significant compensation in the event of a catastrophe.
The Marsh cover can be obtained by contacting individual rugby clubs.