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Every day the press continues to highlight organisations or individuals that have carried out an act, which has caused disgrace. These acts could affect the financial stability of not only their own company, but also organisations who they work for, support or endorse.

The problems are increasing, now is the time for all Companies and Charitable organisations to review their exposure.

A review should consider the following main areas:  

1. Protect your marketing and sponsorship spend

When an organisation has financed a major ad campaign, or film, but before it is completed, the celebrity is named and shamed publicly. Worst-case scenario (without indemnity insurance) would mean that the costs that the organisation has incurred or contracted to pay are lost and could be irretrievable. Potentially before any marketing activity has even taken place.

There are many examples of losses, The Kevin spacey sexual harassment scandal according to an article in the Telegraph cost Netflix $39 million *

Peter Collins a Director of Bespoke Risk Solutions warned, “With the potential for bad news to spread at lightning speed via the Internet and social media, the risk to sponsors and advertisers is considerable, and as we have seen recently the event could lead to poor PR which results in lost income.

Where they have arranged Death or Disgrace indemnity insurance policy this can provide cover for the company to recover wasted expenditure on advertisement production and airtime costs in the event that a contracted celebrity or club falls from grace or dies.”

The recent problems from the US involving Actors has highlighted that this is not a new problem, some of the alleged offences took place many years ago, but for the for the first time now the actors are going public.

According to Business Insider**, there are 36 powerful men accused of sexual misconduct, and that is after Harvey Weinstein and allegations.

2. Protect your corporate sponsor revenue

When corporations like Betway, Emirates, AIA and Yokohama Rubber Company pay millions of pounds for sponsorship or celebrity endorsements, they try to ensure that the clubs and people they are investing in have closets that are skeleton free.

Recent events highlighted that past events may only come to light many years after it happened, but it will have the same effect as if it happened yesterday, a possible loss of revenue.

When it comes to sports, literally millions of pounds are tied up in endorsements – so when the proverbial ‘hits the fan’ then sponsors stand to lose big time. The formula is not rocket science: Bad PR for the club = bad PR for the brand = less investment from sponsors.

In light of the recent football income tax scandal, the UK’s sports community is once again in the media spotlight for the wrong reasons. Football is big business in the UK and Europe, and according to Deloittes**** the combined revenues of the ‘big five’ European leagues was €12 billion in 2014/15. In addition, four of the ‘big five’ leagues recorded revenue growth.

A huge part of club revenue is the income that it receives from corporate sponsors. However, open the newspaper and it is not just football that is making the headlines. Other sports have received negative media coverage recently including motor racing and cycling, and there is an ongoing review of the use of banned products in athletics.

Recently the BBC***, reported that HMRC had arrested “several men working within the professional football industry for a suspected income tax and national insurance fraud”. “180 HMRC officers have been deployed across the UK and France,” the statement added. “Investigators have searched a number of premises in the north east and south east of England and arrested the men and also seized business records, financial records, computers and mobile phones.”

In January this year, a Parliamentary Committee revealed that 43 players, 12 clubs and 8 agents were the subject of “open inquiries” by HMRC.

Andrew Sinclair (pictured) of PIB Insurance Brokers stated, “We are amazed that companies arrange insurance to protect their assets and liabilities, but this is one area, which in most cases could cause substantial losses, and in many cases, they have not even considered the consequences. It could be suggested that the companies’ Directors have not ensured that the assets and liabilities are adequately insured, and they therefore are leaving themselves exposed”

3. Protect your name and reputation

Bad publicity for any club, company or charitable organisation will have a negative impact on its brand value equity. Whether trouble arises from players, managers, Employees, Directors, if they are publicly ‘disgraced’ then the share price or income could tumble.

Companies and charities in recent years have all seen the effects that a disgraced act could have on their income, but to recover and rebuild brand awareness or replace income losses could take many years.

Peter Collins said, “Many companies and charitable organisations have not considered Death and Disgrace indemnity insurance policies as a way to protect their balance sheet. Every day at present there is a new scandal and this week Oxfam has been the subject of a number of press and TV coverage. If your broker has not advised you about this insurance, perhaps you need to change your advisers.”

Every company and charitable organisation needs to review their exposure now, this also protects the Directors and Trustees in the event of a problem, as they have considered the exposure.

For more information and how it can help your business: Contact


Bespoke Risk Solutions Limited are an Appointed Representative of Leisureworld (GB) Ltd who are authorised and regulated by the Financial Conduct Authority (Financial Services Register No. 749920) You can check these details by visiting

Bespoke Risk Solutions Ltd are registered in England and Wales No. 07292153.  Registered office:  Victoria House, 50 Alexandra Street, Southend-On-Sea, England, SS1 1BN

Leisureworld (GB) Ltd are registered in England & Wales No. 02663024.  Registered office: 1422/24 London Road, Leigh On Sea, Essex, SS9 2UL.