6:35 am December 16, 2009, by Henry Unger
Where there’s a crisis, there’s a buck to be made.
In the wake of the Tiger Woods fiasco, DeWitt Stern, a century-old risk management firm in New York, will be offering “reputation risk insurance” to advertisers and other companies starting in the new year.
Sponsors paid Woods tens of millions of dollars a year to endorse their products.
“The Tiger Woods scandal shows how quickly reputations can become tarnished in today’s fast-paced media environment. All the planning in the world cannot protect a brand manager against the unforeseen,” LeConte Moore of DeWitt Stern said in a news release.
The new type of insurance “will compensate policy holders for both the cost of crisis remediation and actual loss of revenue following public relations crises,” the news release said.
What do you think of this idea?
If you’re a company exec, would you consider buying it?
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