MGA launches celebrity risk cover with disgrace insurance

Aventum-owned MGA Rokstone has launched a contingency product to safeguard brands from financial and reputational losses tied to celebrity endorsements.

The Disgrace Cover product has been introduced to address the increasing risks brands face in celebrity partnerships.

It will offer a £5m per individual risk facility, covering death, disablement and financial losses from public scandals that may force businesses to halt campaigns, reshoot ads or repair brand reputation.

The product incorporates proactive risk management techniques, such as comprehensive background checks and adverse media screening, to enhance pricing accuracy and streamline claims resolution.

David Boyle, portfolio manager for contingency at Rokstone, said: “Disgrace cover isn’t new, but it’s an area that can benefit from modernisation.

“We are focusing on data-driven underwriting and tailored coverage to address today’s evolving challenges in the entertainment and marketing industries.”

Addressing risks 

The launch of disgrace cover highlights a focus within the industry on managing risks related to celebrity endorsements.

With the prevalence of social media and heightened public scrutiny, a celebrity’s actions or opinions can rapidly become liabilities for associated brands.

Rokstone’s offering aims to address these risks, providing protection for businesses exposed to such vulnerabilities.

Gavin Dollings, chief underwriting officer at Rokstone, added: “Doing business with celebrities carries inherent financial and reputational risks, as demonstrated by numerous high-profile cases covered in the media.

“This remains a persistent issue for brands. By leveraging our industry expertise and disciplined underwriting, we aim to address the capacity gap in this segment.”