Archive for December 28th, 2009

  Wanted to make sure that us reputation-watchers do not miss the recent new product announcement before the year closes — reputation insurance! Tiger Woods may not have been the impetus, but I’m sure that he helped cement its future viability. DeWitt Stern, a 110 year old insurance broker, is planning to launch this reputation risk product using the directors’ and officers’ liability insurance (D&O) model which protects directors/officers from shareholder law suits. Heard about this in The Financial Times and The Washington Post.  The reputation-based product “would pay policy holders for the lost sales, ad expenses and endorser fees caused by a public relations crisis — some unforseen event or misbehavior that casts a shadow over the company.”  Needless to say, someone is going to have to define what exactly constitutes a crisis or “shadow over the company.”  DeWitt Stern says the product was in progress before the Woods incident which I believe to be the case.  Makes sense in this world of Internet nakedness and transparency, celebrities will be prime targets for disclosures of all kinds.  Interesting too, DeWitt Stern will be able to provide help with a crisis communications strategy when that celebrity endorser goes wild!  A total package.