Do You Need "Disgrace Insurance"?

Celebrity endorsements are all well and good … until the celebrity starts misbehaving. That’s where the insurance companies come in. Insurance brokers report a growing interest in “disgrace insurance,” which protects companies in the event that “a brand ambassador turns into a persona non grata.” “We live in a time where interest in a celebrity’s life is everything,” said Robert Barron of Lockton.?”These people are under constant media surveillance and it’s very difficult to keep what they do a secret. Brands know that even if they have someone endorsing their product who is squeaky clean, there is always a risk they could be caught doing something.” Of course, a “wild” brand ambassador might be a good thing for some companies: “While we can’t advocate the off-pitch antics of ambassadors, there may be a time where a few wild nights might work for a brand and not against it,” said Joe Hale, a brand consultant. (HT: Marginal Revolution) [%comments]

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  1. Elisabeth says:

    Once these contracts begin trading, it will no longer be just tabloids and stalkers delving into the private lives of celebrities.

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  2. Tyler says:

    Wonder how much this insurance would have paid out to Nike, Gatorade, Buick, Accenture, and AT&T around this time last year…

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  3. Kaydiv says:

    What about ambassadors that commit insurance fraud? I can see a company, wanting to dump an ambassador that’s lost some of their luster, giving the ambassador a kickback if they let slip a few things.

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  4. Andrew says:


    I wonder what would constitute “persona non grata” status.

    Brett Favre sending an alledged picture of ‘himself’ is that enough?

    Even Tiger Woods was charged with no crime, but clearly the implication is that his indiscretion is what your insuring against.

    Disgrace is different from person to person this seems a very fuzzy thing to ensure against.

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  5. Ian Callum says:

    Just go into rehab like everyone else.

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  6. KarenS says:

    Does a celebrity scandal actually hurt sales? Has anyone done any research on that?

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  7. Drill-Baby-Drill Drill Team says:

    Tiger Wood’s Titanic reputation was sunk on the Iceberg of Infidelity.
    Richard Simmon’s reputation by contrast is stellar. He has shown America the results of decades of exercise and short shorts.

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  8. rich says:

    See “Diary” by Chuck Pahlaniuk for an interesting take on branding and advertising and the cult of celebrity.

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