They definitely exist. I know Prince Fielder’s contract with the Rangers was insured, and he was already having injury problems with that contract.
I’d guess they are more common with multi year contracts, though. I’d guess the Brewers have guys like Chourio, Yelich, and Pratt insured because if those guys had a career ending injury, that would set the franchise back years financially. A 1 year $22 million contract is a lot, no doubt, but it’s not a franchise altering contract.