Rokstone, the international specialty re/insurance managing general agent (MGA), has introduced a new contingency product designed to address financial and reputational risks associated with celebrity endorsements.
The Disgrace cover policy also includes death and disablement coverage, offering protection for brands impacted when a public figure can no longer represent a product or service in marketing campaigns due to reputation-damaging events.
With the prominence of social media, the behavior, views, and personal lives of celebrities are under increasing scrutiny. Rokstone says that with this heightened visibility comes risks for businesses that rely on celebrity endorsements.
The new coverage aims to mitigate these risks, allowing brands to recover costs incurred from campaign withdrawals, reshoots, event cancelations, or efforts to repair brand reputations.
The policy, backed by A-rated capacity, provides up to £5 million for each individual case of death, disgrace, or disablement. Rokstone has emphasized a proactive approach to risk management, incorporating detailed background checks and social media screening to ensure accurate pricing.
The product leverages data-driven underwriting, with same-day quote turnaround and expedited claims handling.
David Boyle (pictured above), portfolio manager for contingency at Rokstone, claimed that the launch of the coverage addresses a clear gap in the market.
“Disgrace cover isn’t new, but it’s ripe for innovation, and that’s what we intend to do. Forget high premium, high exclusion, low-limit policies, and instead think innovative data and talent backed underwriting and cover that’s relevant in today fast-moving entertainment world,” Boyle said.
Gavin Dollings, chief underwriting officer for Rokstone Commercial, added that the financial and reputational risks associated with celebrity partnerships are significant and growing.
“It’s a problem that’s not going to go away and yet it is an underserved area of the market. That’s about to change thanks to our industry experience and underwriting discipline,” Dollings said.
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