When a celebrity gets scrutinized in the public eye, oftentimes the victims hit the hardest are the companies they endorse.
But now there’s a way for those companies to insure against a celebrity’s downfall.
AIG last week announced an insurance package called, and we’re not making this up, Celebrity Product Recall Response, designed to help companies address the risks associated with a celebrity’s death or fall from grace. The coverage would pay for product recalls that have the celebrity’s name and image attached to them, and would be triggered by “significant media coverage” or an alleged criminal act of a company’s celebrity endorser.
“Celebrity Product Recall Response was developed expressly to address exposures companies take on when they associate with well-known individuals to promote their brands,” said Jeremy Johnson, president and CEO of Lexington Insurance Company, a part of AIG’s commercial insurance division. “In this age of social media and instant news, reports of indiscretions by celebrities or high profile athletes can spread worldwide instantly, with swift, adverse implications for products or brands associated with the individual.”
According to AIG, standalone policies are available with limits of up to $5 million.