The insurer has now released a type of coverage meant to protect stars against liabilities from endorsement deals.
AIG has announced some of its latest insurance news, which has come in the form of a policy that has been designed to help to protect companies from the losses from a harmed reputation as a result of a celebrity endorser that has taken a wrong turn and has done something that could bring embarrassment, shame, or other damage to the company’s standing.
The policies have limits that will protect companies for up to $5 million in reputation damage from bad celebrity PR.
The insurance news has to do with the companies that suffer damage to their reputations when a celebrity endorser is scrutinized in the eye of the public. AIG is hoping that companies will be interested in buying protection the cover themselves against the downfall of the celebrities to which they have linked their brands.
The product package at the center of this insurance news is called Celebrity Product Recall Response.
This insurance package has been created to help to cope with and overcome the risks that are linked with the harm to a company’s reputation if a celebrity endorser should die or if he or she should take a tumble from grace. The type of claim that could be made on this form of policy could include those to cover product recalls that have the image and/or name of the celebrity on it. The payments for these claims would be brought on by “significant media coverage” of the death or alleged criminal activity of a celebrity who endorses that company’s product.
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According to the Lexington Insurance Company CEO and president, Jeremy Johnson, “Celebrity Product Recall Response was developed expressly to address exposures companies take on when they associate with well-known individuals to promote their brands.” Lexington is a branch of the commercial insurance division at AIG.
Johnson went on to say that “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.” The insurance news showed that the coverage will protect the company for up to $5 million, depending on the policy that was taken out.