To protect brands, corporate entities, advertisers against losses incurred
DeWitt Stern, the 110-year-old risk management and insurance brokerage firm, has launched Reputation Risk Insurance, which is expected to be available in the first quarter of 2010.
The company said that its new policy will protect brands, corporate entities, and advertisers against losses incurred from reputational crises. It will also compensate policy holders for both the cost of crisis remediation and actual loss of revenue following public relations crises.
LeConte Moore, managing director of New York City office at DeWitt Stern, said: 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. Reputation Risk Insurance will provide those forward-looking brand managers and advertisers with a smart and attractive way to protect their investments.
Scott Brady, managing director of Los Angeles office at DeWitt Stern, said: Reputation is arguably a company’s single greatest asset, and in the era of instant information, it is more vulnerable than ever. This industry first will enable companies to protect an asset previously ignored by the insurance industry.
DeWitt Stern said that its new policy will compensate policy holders for lost sales, crisis management fees, lost advertising campaign expenses, and pre-committed and incurred endorsement fees.
DeWitt Stern has been developing the policy in consultation with Vorhaus Communications, a crisis and reputation management advisory.