“Disgrace” Insurance Available For Sale
I just found this piece incredibly interesting. Apparently, companies can buy insurance coverage that will kick in if celebrity spokespersons do something to tarnish the brand. I’m not sure if the publication of this story was intended to nearly coincide with the first anniversary of Tiger Woods’ car crash or not. But his case is an example. While some products stood by him, other did not – to the tune of an estimated $20 million in lost endorsements. I haven’t seen an actual policy, but I can suspect it could cover the cost that a company might incur to start up a new campaign when the bad behavior of the spokesman gets him booted. I also wonder if the ubiquity of the online/social media world – which seems to capture more bad behavior for the world to see – is the reason for the uptick in this kind of coverage. Will parents soon be able to buy embarrassment insurance for when their kids show up with a beer bong on Facebook? Just wondering.