Now celebrities can insure against scandal
In a fame-hungry world, the celebrity endorsement can do wonders for a brand. Companies spend millions signing up sports figures and A-listers to front their campaigns in the hope their star appeal will draw in consumers.
But if your celebrity suddenly falls from grace, by having an extra-marital affair splashed over the tabloids, for example, that endorsement can quickly backfire into a costly PR disaster.
This is why a growing number of companies are buying so-called “disgrace insurance” to cover themselves in case a brand ambassador turns into a persona non grata.
Fuelled by the ongoing litany of celebrity sex scandals, such as those that have recently hit Wayne Rooney, Peter Crouch and Tiger Woods, firms are asking insurers to cover them for any losses that might be incurred from ‘their’ celebrity misbehaving.
The policies — usually referred to as “death, disability and disgrace” clauses — have been around for decades but insurance brokers say there has been a significant rise in companies claiming for losses through disgrace.
A deal between Wayne Rooney and Coke Zero was scrapped last month, while Tiger Woods lost around $20m (£12.5m) of endorsements when his extra-marital affairs became public.