Death and Disgrace Insurance for Celebrity Endorsers: A Luxury or Necessity?

Abstract

A celebrity endorser can be an effective means of promoting a brand due to the positive meanings that can be shared between the brand and the endorser. However, negative associations toward the brand can also be made if the celebrity breaks the law, or misbehaves in some other way. Death and disgrace insurance is a way in which sponsoring companies can shield themselves financially from a celebrity who falls from grace. Our findings indicate that only 30.8% of advertising agencies always recommend death and disgrace insurance and just over half address morality issues as a part of final contract negotiations.

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