As if they read my mind, the FT takes the matter of brand icons further in today’s editorial
This piece elaborates on what was probably a press release in the first instance. Apparently, broker DeWitt Stern, is marketing ‘reputation insurance’ for brands to cover themselves against the indiscretions of their iconic ‘partners’ – eg Tiger/Accenture. It’s an interesting topic, dressing up what is basically a glorified D&O product which would pay for the brand’s legal expenses when they want to sue the celeb. Really the insurance would only be any good if Tiger had bought it himself as part of the contract though. Here’s an example: ‘we will pay you $Xm a year and you must as part of the deal purchase liability cover against any loss caused to us through a material breach of contract’.
On a similar note relating to weird insurance policies would be the fact Tiger Woods is now out of circulation on the golfing circuit and as such, a black hole will appear in the niche financial markets that underpin his win bonuses and so on. Every year, insurance is bought to pay for contingiencies like whether Roger Federer will win the grand slams or Lewis Hamilton the F1 title. The sponsors take huge gambles on whether to put these win bonuses in reserve against their balance sheet or buy an insurance policy which will pay out upon success. No Tiger, no policy, no tidy premiums for the brokers and insurers. Maybe Usain Bolt can fill the gap with another world record year… I guess the World Cup will help too – anyone want to insure the English FA? Surely they’ve bought a policy to cover our lot, it would be far too much wishful thinking to say that our 22-man squad is enough of a contender to warrant setting some cash aside to pay their bonuses when they trudge out on penalties in the quarter finals!