Scandal Insurance Product Being Crafted
The surge in scandals involving allegations of sexual assault and harassment is fueling interest in the development of a new insurance product, to protect against the financial fallout from such scandals.
An exposé published by the New York Times on October 5 about women charging Hollywood mogul Harvey Weinstein with sexual assault and harassment was followed by a barrage of allegations against many others, not just in the entertainment industry. The fact that making a movie can cost tens of millions of dollars is spurring new interest in new insurance products to address the new risks.
Brian Kingman, who leads a team of entertainment specialists at insurance brokerage Arthur J. Gallagher & Co. recently told Bloomberg his phone has been ringing off the hook with TV and movie executives looking for a solution. What the industry needs, he says, is an insurance product akin to the “death and disgrace” policies in the advertising world, which cover the cost of removing billboards or pulling TV spots when a spokesman dies or becomes embroiled in scandal.
Kingman says he’s talking to Lloyd’s of London and other underwriters about such a product. Given the string of high-profile incidents, “the rates will be high, and carrier capacity will be limited,” he says.