When a company partners up with the right entertainer or athlete, it has the potential to have a great impact on the status quo for that company. Companies regularly spend millions to have someone who is well-known featured in advertising campaigns. Joining with a high profile athlete or spokesperson comes with its own risks though, and it’s in the company’s best interest to safeguard themselves as much as possible from any situations involving personal disgrace.
In today’s world the social media outlets seem endless, information regarding entertainers, celebrities and athletes can spread around the world in a matter of minutes. So it’s no surprise that more and more companies are depending on disgrace insurance, as an imperative risk management tool.
When a company purchases a disgrace insurance policy they need to be certain that it contains the required variation of coverage. Being sure to specify the details of the policy widely enough to include any possible issues that can arise from a number of things that range from offensive behavior to potentially criminal conduct. These policies are non-standard so companies should verbalize their coverage expectations and needs to their brokers, in depth.
Here is an example of how disgrace coverage comes into play. If an athlete has any financial obligations where they are making payments, the financial establishment working with the athlete may require their professional contract to be insured against any situations that arise that would prevent the athlete from making payments, such as being suspended. A disgrace insurance policy would ensure that the financial institution would still receive payments.
Here is another example of how disgrace coverage is beneficial. If the company’s spokesperson is involved in a public scandal, the company may need to makes changes or even cancel the ad campaign which the spokesperson was featured in. Disgrace coverage could cover the price of duplicating materials needed for advertisement or hiring a replacement spokesperson.
In the event a claim is being made on a disgrace policy, companies need to review their policy just as carefully as when they purchased it, to be sure they are within time frames set in the policy, this will ensure the greatest protection against financial losses. With the many benefits of disgrace insurance, in today’s world, companies are making the decision to not do business without these policies in place.