Lee filed the lawsuit Tuesday in district court in California on the same day he says his claim to collect money owed to him as a result of slipping in the 2014 NFL draft was formally denied.
Before the 2013 season, Lee, then preparing to play his junior year at USC, paid a $94,600 premium to Lloyd's to cover him should he fall in the draft to a contract worth less than $9.6 million, as a result of sustaining an injury.
Less than two weeks later, Lee hurt his left knee in the Trojans' game against Arizona State, and he never fully regained his position as the nation's top receiver.
At the 2014 NFL draft, Lee was the sixth wide receiver taken when he was selected with the 39th overall pick by the Jaguars.
Lee eventually signed a four-year deal with the team worth $5.17 million, about $4.5 million short of the policy's guarantee.
While some players have collected on permanent total disability policies, it is believed Lee would be the first to collect on a loss-of-value policy. If Lee ever gets the $4.5 million, he'll get to keep all of it, as it's tax free.
Lee finished his rookie season with 37 catches for 422 yards and a touchdown.