DeWitt Stern, an insurance brokerage firm specializing in insurance products for the entertainment, arts, and advertising communities, will introduce “Reputation Risk Insurance” in 2010. According to the press release, the insurance will “compensate policy holders for lost sales, crisis management fees, lost advertising campaign expenses, and pre-committed and incurred endorsement fees.”
While this proves once again that you can insure anything, insuring your reputation is not the most appropriate risk treatment. You should be investing in controls and processes for ensuring that your reputation isn’t harmed in the first place.
I would hazard a guess that pulling a Tiger Woods voids the policy if you bring the reputation event on yourself because of your bad judgment.