Michael Jackson's Legal Thriller Likely Uninsured

By Michael Ha

NU Online News Service, April 1, 2:55 p.m.EST?Singer Michael Jackson, whose hits include "Beat It,"will likely hear those words from his insurers if he asks them tocover the multimillion-dollar costs of his defense on childmolestation charges, according to a legal expert.[@@]

Mr. Jackson, a.k.a. the King of Pop, has insurance through AonCorp.'s Albert G. Ruben specialty group in Los Angeles, an industrysource told National Underwriter without specifying whattype of coverage is involved. Aon Corp. declined NU'srequest for an interview regarding its relationship with the famedmoonwalker.

Mr. Jackson has been on trial at the Santa Barbara CountySuperior Court since Feb. 28, accused of molesting a 13-year-oldboy at his Neverland ranch two years ago.

But whether the jury acquits or convicts him, his insurancecompanies probably won't be singing ""I'll Be There" and arrivingwith a claim check.

Cathy Fleming, who leads the litigation practice group at NewYork-based law firm Edwards & Angell, explained that there is ahuge difference between civil and criminal trials in terms ofpossible insurance indemnity.

"In civil cases, people will frequently have coverage from theirumbrella or other insurance policies, but it's much harder andunusual to get it for criminal activities," the lawyer said.

Sometimes, policies may contain specific provisions to indemnifyclients in case they are accused of specific wrongdoings. So it'spossible?though not likely?that Mr. Jackson has such contracts inplace, Ms. Fleming speculated.

But given Mr. Jackson's history of a prior lawsuit allegingmisconduct with a young boy and his televised statementsacknowledging sleeping with youngsters, securing such coveragewould have been difficult, she said.

Many wealthy entertainers have insurance protection underdirectors-and-officers coverage through corporations they have setup to manage their business. Such coverage can indemnify insuredswho are accused of wrongdoing in the context of their work. Butwhile Mr. Jackson may have such insurance, it certainly won't payfor criminal trials involving sex charges, Ms. Fleming said.

"Mr. Jackson has a high-powered, very good attorney," Ms.Fleming said, referring to defense lawyer Tom Mesereau. "So I wouldimagine that he's got a fee in a several-million-dollars range orhigher," the lawyer estimated.

"By the time Mr. Jackson is done with attorneys, press relationsand the rest, I would imagine that regardless of the outcome, hewill have spent at least $10 million. Mr. Jackson will likely haveto bear the cost out of his own pocket."