New Insurance Covers Celeb-Endorsed Products from Endorser’s Public Fall from Grace
American International Group, Inc. (AIG) announced a new insurance product called Celebrity Product RecallResponse. According to the company, it is designed to protect companies exposed to risks if a celebrity endorser suffers a public fall from grace or sudden death. It aims to particularly help companies that manufacture and sell products bearing a celebrity’s name or image.
The insurance is triggered by extensive media coverage of an endorser when the endorser allegedly or actually commits a criminal act or other offenses that results in or may potentially result in
“public contempt for the individual and a significant adverse impact on a company’s product.”
Related costs that may be covered are expenses incurred while removing the affected products and packaging from the stores. Additionally, if costs associated with removal of marketing and advertising materials with the celebrity’s image.
AIG provides the product through Lexington Insurance. Lexington’s President and CEO Jeremy Johnson says that it
“developed [the product] expressly to address risks these companies commonly face these days. “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.”
Covering up to $5 million with standalone policy, the product targets businesses of many sizes.