Move follows Tiger Woods scandal
Insurers plan to launch a new product to help companies protect themselves against the financial impact of reputation or brand damage, according to the Financial Times.
The developments follow Accenture’s recent announcement to drop Tiger Woods from its advertising after the golfer's admission of infidelity.
DeWitt Stern, a 110-year-old US insurance broker, has received expressions of interest from London underwriters about backing a reputational risk product it aims to launch early in 2010, said the FT.
Dewitt Stern said the product could develop into something similar to directors’ and officers’ insurance.
Wood’s admission of infidelity has sparked interest from companies worried about their vulnerability if their brands, or spokespeople, are hit by scandal.
Some types of reputation cover are already available in the insurance market, including indemnities to cover the fees for spin doctors to manage the fallout from a reputation hit.
