Companies taking out celebrity endorsement insurance because of Tiger Woods

Posted By: The Ski Channel on February 2, 2010 6:56 pm

To protect themselves from potential losses, companies with celebrity endorsers are now taking out insurance claims due to the Tiger Woods scandal. The whole debacle scared them. Additionally, the companies are including morality clauses into the contracts of the celebrities which gives them the right to terminate endorsement deals if the stars get into any big trouble.

Lawyer Brian Socolaw says: “Companies are saying if it could happen to Tiger Woods, it could happen to anyone. … For some companies, it’s a tremendous investment, and when it goes bad, it is not only the loss of investment, it’s a black eye for the company.”

No word yet on whether or not The Ski Channel will follow suit with the rest of these companies…