Tiger Woods Scandal Shows Need to Protect Brands and Advertisers from Sudden and Dramatic Losses

NEW YORK, Dec. 14 /PRNewswire/ -- DeWitt Stern, the 110-year-old risk management and insurance brokerage firm specializing in insurance products for the entertainment, arts, and advertising communities, today announced that it will introduce "Reputation Risk Insurance" into the marketplace at the beginning of the new year. No other insurance product of its kind has ever been available, DeWitt Stern says.

DeWitt Stern's Reputation Risk Insurance will protect brands, corporate entities, and advertisers against losses incurred from reputational crises. DeWitt Stern's Reputation Risk Insurance will compensate policy holders for both the cost of crisis remediation and actual loss of revenue following public relations crises. DeWitt Stern has been developing the policy in consultation with Vorhaus Communications, Inc., a leading crisis and reputation management advisory. It is expected to be available in the first quarter of 2010.

"The Tiger Woods scandal shows how quickly reputations can become tarnished in today's fast-paced media environment," said LeConte Moore, a Managing Director at DeWitt Stern's New York City office. "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."

"Reputation is arguably a company's single greatest asset, and in the era of instant information, it is more vulnerable than ever," said Scott Brady, a Managing Director at DeWitt Stern's Los Angeles office. "This industry first will enable companies to protect an asset previously ignored by the insurance industry."

DeWitt Stern's Reputation Risk Insurance 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 innovative risk solutions since its founding in 1899. DeWitt Stern's commitment to excellence has earned the trust of a varied clientele, including celebrated individuals, prominent corporations, professional firms, business executives, insurance managers, government leaders and cultural institutions. This diverse range of personages has long relied on DeWitt Stern for their formidable expertise in the areas of commercial risks, theatrical, film and music risks, fine arts risks, as well as many others.

SOURCE DeWitt Stern

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