Coverage protects against detrimental actions of stars which harm revenue
Big brands with celebrity ambassadors are increasingly taking out ‘disgrace insurance’ in an effort to protect their brand, reports the Metro.
Companies are aiming to protect themselves against a loss in revenue following sex or drug scandals such as those surrounding Tiger Woods and Wayne Rooney.
Mark Symons, underwriter at Beazley said insurance policies of this nature have increased three-fold in recent years.
“Either you lose the money or you get a policy that will pay the cost of you restarting a campaign,” Symons said.
Insurance cover is based on accessing whether an ambassador’s actions can be said to be unforeseen or out of character, therefore detrimental to the brand.
