Companies derive significant financial benefit from celebrity and influencer endorsements, spokespersons and brand ambassadors. This financial benefit continues to grow as technology, especially social media platforms, expands the scope and breadth of the targeted audience.
Yet, the same actors, politicians, reporters, athletes, models, Instagram influencers and business moguls that increase a company’s brand awareness and value can commit acts that disgrace the very companies they represent. The disgraceful acts of a company’s spokesperson can result in financial loss and brand reputation damage. As a result, companies should be aware of a line of insurance coverage designed specifically to protect against this unique risk—disgrace insurance.
