Stars of sports and entertainment are often high net worth individuals, with expensive cars on the drive and large properties with highly valuable possessions inside. Insurance policies can feel disproportionately expensive and it can be very difficult for celebrities to find the right policy to suit them.

The image of the ‘irresponsible’ celebrity

The media continually presents us with images of celebrities taking the ‘work hard and play hard’ ethic a little too far! We read stories about celebrities crashing cars, falling drunkenly out of nightclubs and indulging in other reckless behaviour.

So unfortunately for your average celebrity who lives a more sensible and quiet life, they are in a high-risk category when it comes to assessing their insurance premium. Looking at car insurance for example, the most costly professions are motor racing drivers and footballers, with DJs and TV presenters not far behind. Their premium can be six times as much as that for nurses, reflexologists and bursars.

Celebrities at high risk of theft

Another reason that celebrities find it hard to get insured is that they are more likely to be a target for break ins and burglaries due to their affluence and high social status.

Sofia Coppola’s latest film The Bling Ring (pictured) may have been an exaggeration of the true events but it was no less based upon real robberies. Between October 2008 and August 2009 a group of seven teenagers stole about $3m in cash and belongings from around 50 homes in Calabasas, California. These thieves would target celebrity homes, including that of Paris Hilton, when the resident was reported by the media to be away on holiday or out at a party.

One problem that stars of sports and entertainment have is that their whereabouts is so well publicised. It’s easy to work out when a Saturday night TV presenter will be away from home, and you can get the list of football fixtures months in advance and make a good guess as to when their property will be unoccupied. In fact a few years back there were a spate of break-ins at the homes of Premiership footballers while they were on the pitch.

“The Premiership elite may collect weekly wages of up to £150,000, but their fame, fortune and all-too-conspicuous consumption comes at a price,” explains Patrick Barkham his Guardian article on the away-day robberies, about a spate of break-ins at the homes of Premiership footballers in the North-West. “Not only does every fan know what cars they drive and their favourite boutiques but, crucially, everyone knows when footballers – unlike the other residents of affluent suburbs such as Formby, Woolton, Knutsford and Bowdon – are out at work.

“These thefts have become so regular that bookmakers Paddy Power even offered odds on which Liverpool star would be burgled next, before swiftly withdrawing its bad joke.”

Offering bespoke renovation insurance for celebrities 

At Renovation Insurance Brokers we work with a lot of high net worth individuals looking to renovate a property, including stars of stage, screen or sports.

The project could be to develop a Georgian townhouse, or to renovate a Grade II listed building in the country away from the fast pace of city living. It’s essential to make sure that the right insurance cover is in place for the duration of the renovation project to protect the property, people working on the site and any valuables inside.

As with all our clients we spend time at the start of the project gathering as much information as possible, before creating a bespoke renovation insurance package that suits the individual project. And it goes without saying that all discussions are confidential, as we put our focus on getting the right cover in place for these unique renovation projects.

#What kind of insurance covers have you heard of? Let's see - medical, life, property, auto. What about body parts? Yes! Even parts are being insured by insurance companies.

Think about this. If you were a famous pianist and your source of livelihood was your music, then wouldn't you want to insure your hands because quite literally, it's those hands that feed you!

Celebrities are known by one of bodily features and it serves as their means of livelihood and fame. Therefore, it is important for them to safeguard what brings them fame and money! Even though this kind of insurance is yet to get a hold in the Indian market, celebrities like Lata Mangeshkar and Sania Mirza have insured their voice and hands respectively. The Vanguard Olympic bronze medallist boxer, Vijender Singh, is contemplating getting his hands insured in the near future from Bajaj Allianz.

#Normally body part insurance is more than Rs 50 lakh to Rs 1 crore or more. These are no traditional policies, as they are customised according to individuals.

The general insurance arm looks into this type of insurance and, usually, the policy is for a year and renewed thereafter.

Though this kind of insurance is still in its nascent stages in India and insurance companies do not normally have ready policies for such insurance requests, this kind of insurance has been available in the West for a very long time.

The insurance scene there is dominated by movie stars and singers and the foremost among insurance companies has been Lloyd's of London.

#Body Part Insurance: A fast growing segmentShareThis

You might have heard about various insurance schemes covering property, life, health and automobiles, but until recently, nobody would have thought of having separate body parts insured. Today, it is possible to have your body parts insured with an insurance company. If you are a tea taster, you can insure your nose and your tongue as both body parts are aiding you to earn your bread and butter. This policy is usually taken by celebrities all over the world as they can afford the high expenses associated with it. 

Places where body part insurance is popular

Body part insurance is widely popular in developed countries. However, insurance companies are now offering body part insurance in developing countries as well. Although it is in an initial stage in India, it is gaining pace as several celebrities have already insured their body parts. The policy does not contain any conventional ideas; it varies from one individual to another. The biggest hurdle in availing this type of policy is the exorbitantly high premium. This policy remains valid for 12 months and on completion of the term, you need to renew it.

Who is going in for it?

Several celebrities have insured their body parts. In India, Lata Mangeshkar has insured her voice while Sania Mirza has got her hands insured. Olympic medalist Vijender Singh would also soon get his hands insured by Bajaj Allianz. Internationally, famous footballer David Beckham has got his legs and feet insured for $70 million. American singer-songwriter Mariah Carey’s legs are insured for $1 billion while Bruce Springsteen insured his voice for $6 million. German super model, Claudia Schiffer insured her face for $5 million to be compensated in case anything happened to it.

Policies undertaken by the middle income group

Is this policy for the middle income group? May be not as insurance companies would not entertain requests for body part insurance until it is a celebrity. This kind of policy is adopted by companies mainly to popularize their brand through celebrity clients. - See more at: http://flame.org.in/KnowledgeCenter/BodyPartInsuranceAfastgrowingsegment.aspx#sthash.qlTpndqx.dpuf

Buying Insurance for Parts of your BodyBody parts insurance

Currently in modern society it is possible to insure any manner of things which if lost will have a financial implication on the life of that individual. The insurance of body parts is something which may sound unusual, but is perfectly legal and is steadily on the increase.

What is meant by body parts insurance?

Body parts insurance is a type of insurance which is most commonly related to the celebrity field but it is not something which is strictly limited to that industry. It is a form of insurance which can offer financial cover and protect an individual’s livelihood if they rely on a specific part of their body to earn a living.

What is the purpose of body parts insurance?

The purpose of body parts insurance is in paying out financial compensation for any accidental damage or disfigurement caused to the insured body part. The key point to note here is that the insurance policy will only pay out if the damage to that body part results in a loss of work and thus income.

What kinds of people take out body parts insurance?

Body parts insurance is available to anyone who requires a specific part of their body to be able to carry out the job which they make their living from. Accordingly the following individuals are likely to take out body parts insurance:

Performers – this can include musicians, singers and actors Artists Surgeons Athletes and other sports people

What body parts are usually the subject of body parts insurance?

Body parts insurance was first heard off when fashion models began to insure their limbs. Since the regularity has increased there has been more bizarre body parts being insured such as the taste buds of a sommelier.

All that needs to be shown in order to gain this form of insurance cover is whether it can be proved that a loss of this body part would lead to a significant loss of work and income.

Why did models first start to take out this kind of insurance policy?

Individuals who work as models have a career based almost entirely on appearance and could therefore lose out on significant income if a form of disability has prevented them from winning future modelling contracts. As a result a model may decide to insure several different parts of their body ranging from their legs, their breasts and even their smile.

Does body parts insurance apply to the whole body?

Body parts insurance is not designed to insure the whole entire body of a particular individual. The intention behind it is to cover only selected body parts.

What should I do if I wish to insure my entire body?

If an individual wishes to insure their whole body it may be more suitable for them to take out a comprehensive life insurance policy.

Will this kind of insurance be available to me?

Body parts insurance is available to anyone who requires a certain body part to undertake the job by which they make their living. However, in reality it is an extremely expensive form of insurance which is why it is often left to the celebrities, sportspeople and top surgeons.

How do celebrities afford to take out these kinds of policies?

Obviously celebrities and sportspeople earn huge amounts of income which enable them to take out these policies, but often they will be done with a certain promotional aspect in mind. Often celebrities or sportspeople will be sponsored by certain companies which will pay for an insurance policy in this manner to be taken out to promote both the individual and the brand.

Is this something which has happened recently?

During 2010 a Formula 1 motor racing driver had his thumbs insured for a total of £9 million. The insurance policy was paid for by one of his sponsors which has a banking and financial sector.

Clearly thumbs are essential for an individual to drive a car meaning that if the individual was unfortunate enough to lose one or both he would no longer be able to carry on his profession and his loss of income would be covered by the insurance policy.

The sponsor also felt that thumbs and his thumbs in particular, represent a sign of victory and that everything is under control and well protected. The sponsor thought that this symbol also represented their company which is why they wished to associate themselves with that particular body part of that particular driver.

Ever watched a celebrity gossip news show? Come on, be honest!

Ever read a celebrity gossip magazine? Still lying to yourself?

Okay, how about you’ve stood in a checkout line at the grocery store and seen the cover of a gossip magazine? Gotcha!

Then you’ve probably seen a headline about a celebrity buying an insurance policy on a part of their body. For many years, celebrities have garnered press attention for taking out such policies—among many other things. You’ve probably heard of singers insuring their vocal cords, athletes covering arms/legs, supermodels insuring facial features, and the list goes on.

You can see some of the most mind-blowing body-part insurance examples here: http://www.celebuzz.com/photos/insured-celebrity-bodyparts/.

Why a Specific Body Part?

At a glance, it may seem like just another celebrity extravagance. But such an insurance policy makes perfect sense to the people who can afford to buy it.

The purpose of such coverage is to supplement lost income if a body part is damaged, injured, scarred, handicapped or lost. Consider the following quote from TV star Holly Madison, who recently made headlines for insuring her—let’s just call it “upper torso”—for $1 million. “If anything happened…I’d be out for a few months and I’d probably be out a million dollars,” Madison told People magazine. “I thought I’d cover my assets… They’re my primary money makers right now.”

Are Only Celebs Eligible?

Is insuring body parts only a luxury reserved for the rich and famous? It may seem that way if you’re reading the news.

Body part insurance similar to that purchased by celebs typically is not something offered by standard insurance companies. Therefore, you likely must find a specialty insurance provider such as Lloyd’s of London to provide the policy. Such a policy can be created from scratch specific to an individual’s needs. This personal attention, coupled with having to purchase from a specialty provider, can result in a premium not affordable to many folks.

That said, celebs are not the only individuals who seek out this type of insurance. Some business owners will look to a specialty insurance provider for a policy designed to help keep the business open if their ability to run it is compromised due to a damaged body part or function. For example, a chef or wine expert who loses the ability to taste or smell could easily lose his or her business and livelihood if those senses were compromised.

Some insurance companies offer coverage for “death and dismemberment” resulting from an accident. While not as glamorous as a policy on a movie star’s legs, such an insurance policy may be an affordable way for people to supplement income due to the inability to work after losing a body part. However, for such a policy to apply, a body part typically must be lost—these typically don’t cover lost income due to injury or slowdown.

Conclusion

Sure, celebrities make all the headlines—hence why they’re called celebs. But insuring a body part also can be a good business decision for the not-so-rich-and-famous. To learn more about covering your assets and insuring body parts, call your Trusted Choice® independent insurance agent.