Celebrity endorser in a scandal? Turn to "Disgrace Insurance"

There was a time when "crisis management" teams at PR agencies were a company's best bet at protecting themselevs when celebrity spokespeople misbehave in public.

Imagine the sleepless nights PR executives at Nike, American Express, EA Sports, Accenture, etc. spent after the Tiger Woods scandal erupted last year.

But now, a growing number of companies are taking out "disgrace insurance" on their brand ambassadors to ensure that they're covered if their celebrities say or do the wrong thing.

The UK Independent points out that 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.

"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." notes Robert Barron of the insurance broker Lockton.

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