Orlando Harmon
Celebrities are known to purchase insurance policies that cover a range of assets, including their homes, vehicles, health, and lives. However, what sets celebrities apart from the general public when it comes to insurance is their tendency to insure specific body parts that are crucial to their careers. This trend of insuring body parts is not new, with sources tracing it back to World War II pin-up girls who insured their legs. Today, celebrities continue to insure various body parts, from voices and fingers to tongues and smiles, with policies ranging from a few million to hundreds of millions of dollars. These policies are often underwritten by specialist insurers like Lloyd's of London, who cater to the unique needs of celebrities and high-net-worth individuals.
| Characteristics | Values |
|---|---|
| Type of insurance | Celebrity insurance, homeowners insurance, medical insurance, life insurance, business insurance, travel insurance, workers' compensation insurance, liability insurance, health insurance, wealth insurance |
| Insured items | Body parts, voice, legs, smile, thumbs, tongue, breasts, sperm, wine collection, wardrobe, jewelry, vehicles, entire body |
| Reason for insurance | To protect their career, protect against financial loss, protect against injury, illness, or disfigurement |
| Cost | Up to $810 million for Mariah Carey's legs |
| Providers | Lloyd's of London, PCI |
| Considerations | Discretion, risk profile, appraisal of valuable items, coverage levels, premiums |
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What You'll Learn
Celebrities insure their body parts
One of the earliest celebrities to insure her body parts was Betty Grable, a famous pin-up girl whose photo graced many a WWII aircraft. She insured her legs for $34,000, a large sum of money at the time. Dolly Parton insured her breasts in the 1970s for around $600,000.
Singers are known to insure their voices, as their careers depend on them. Bruce Springsteen insured his distinctive voice for $6 million, while Mariah Carey insured hers for $35 million. Keith Richards of the Rolling Stones insured his middle finger, which is essential to his guitar playing, for $1.6 million.
Some celebrities insure their legs. After winning the Gillette Venus Breeze "Celebrity Legs of a Goddess" award in 2007, Rihanna insured her legs for $1 million. Mariah Carey also insured her legs for $1 billion.
Other celebrities insure their smiles. America Ferrera, who played a character with a metallic smile in "Ugly Betty," insured her own smile for $11.5 million. Julia Roberts reportedly insured her smile for $30 million.
Some celebrities insure multiple body parts. After insuring her legs, Rihanna also insured her bottom for $300 million. Similarly, Jennifer Lopez, who insured her bottom for $27 million, also insured her legs for $1 billion.
Some celebrities insure their entire bodies. David Beckham, who initially insured his legs, went on to insure his entire body for $195 million. Daniel Craig took out a $9.5 million insurance policy on his body before filming "Quantum of Solace," in which he performed many of his own stunts.
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Celebrities insure their homes
Celebrities often have very different home insurance needs compared to the average person. They may require special coverage for high-value items like pricey collections of wine and artwork, which could appreciate in value over time. As such, they may have higher deductibles, sometimes up to $500,000, and higher coverage limits.
An appraisal of valuable collections and a home inventory are important steps to itemize and value household goods, ensuring celebrities get the maximum amount back if they need to make a claim. Celebrities also need to consider cyber-attacks due to their use of smart home technology. Their home networks can be breached, giving hackers access to private financial files and other documents.
Additionally, celebrities may require protection against security breaches, personal injury, defamation lawsuits, injuries sustained abroad, or the injury of domestic employees. They may also opt for kidnap and ransom insurance, which includes a dedicated phone line for kidnappers to call, and the insurance will pay the ransom.
Some celebrities may struggle to get insured due to their high-risk nature. For example, celebrities with a history of accidents, speeding tickets, or DUIs may struggle to find insurance companies willing to cover them and may have to pay very high rates for special high-risk policies.
Bundling policies, such as auto and homeowner's insurance, can lead to discounts and simplify the management process for celebrities. Celebrities can also benefit from using insurance agents specializing in high-net-worth individuals to obtain fair prices and the necessary coverage for their unique circumstances.
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Celebrities insure their travel
Celebrities lead very different lives from the average person and, as such, their insurance needs are very different. Celebrities tend to travel more than the average person, both for business and for vacations. As a result, travel insurance is a key consideration for celebrities and other high-net-worth individuals.
Travel insurance for celebrities can cover many aspects of a trip, including financial loss if a trip is cancelled, as well as the financial loss of high-value personal items if they are lost or damaged during a trip. For example, travel insurance can cover delayed luggage and weather-related flight delays. It can also provide peace of mind in the event of illness or injury, particularly in remote locations. In such cases, travel insurance can pay for a private jet to take the celebrity back to the US or to another location with better medical facilities.
In addition to the standard benefits, celebrities may also require additional coverage, such as kidnap and ransom insurance, which pays the ransom costs if they are abducted either within the US or overseas. This type of insurance is purchased with the utmost discretion and is typically arranged by the celebrity's business manager through a trusted local broker.
When it comes to the cost of travel insurance, celebrities have a range of options. Some may opt for an annual policy from an insurance company, while others may choose to purchase insurance through their credit card provider, especially if they hold a premium card. Alternatively, travel insurance can be purchased directly from the cruise or airline company, although this is often more expensive and may not offer the same level of coverage as a dedicated insurance policy.
Overall, travel insurance is an essential consideration for celebrities and other high-net-worth individuals, helping to protect them financially and provide peace of mind while they are away from home.
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Celebrities insure their health
Celebrities are known to insure their body parts for huge sums of money. For instance, Bruce Springsteen has insured his voice for $9.3 million, and Keith Richards insured his right middle finger for $1.7 million. Similarly, Holly Madison insured her breasts for $1 million, and America Ferrara (or as per another source, the 'Ugly Betty' actress) insured her smile for $10 million or $11.5 million, respectively. In addition, some celebrities insure their entire bodies; for example, Daniel Craig insured his body for $9.5 million.
However, celebrities also require standard health insurance like everyone else. Many celebrities, especially actors, receive their insurance coverage through their employers or unions, such as the Screen Actors Guild (SAG) or the SAG-AFTRA Union (a merger of the Screen Actors Guild and the American Federation of Television and Radio Artists). These organisations provide specialised health coverage tailored to the unique needs of celebrities, including their dependents. Outside of these unions, celebrities may also have access to exclusive health insurance plans, PPOs (Preferred Provider Organisations), and high-deductible health plans.
Some celebrities may choose to forgo insurance and instead invest a small part of their wealth into liquid assets that can be sold to pay for medical bills. This allows them to make a return on their investments while only paying for medical expenses when necessary.
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Celebrities insure their wealth
Other celebrities insure their entire bodies against injury, illness, or disfigurement. For instance, former footballer David Beckham took out the largest celebrity insurance policy in sports history, covering his body for $195 million. Actor Daniel Craig, who does many of his own stunts, insured his body for $9.5 million while filming Quantum of Solace.
Some celebrities insure their body parts for millions of dollars, which may seem absurd to some, but it is a way to protect their careers and income. While some celebrities foot the bill for their insurance policies, entertainment companies, sports teams, and brands with celebrity endorsements often offer to insure their stars' biggest assets.
In addition to body parts, celebrities also insure their valuable possessions, such as wine collections, artwork, jewellery, vehicles, and even their pets. High-net-worth insurance policies provide coverage for the loss or damage of these pricey collections, which can appreciate in value over time. Celebrities are also advised to have an appraisal done on their valuable items to ensure they get the maximum amount back if they need to make a claim.
Travel insurance is another important consideration for celebrities, as it can provide financial protection if a trip is cancelled or if high-value items are lost or damaged during travel. It can also cover the cost of a private jet to transport a celebrity back home or to a location with better medical facilities if they become ill or injured while away from home.
Given the litigious nature of today's society, celebrities also need to consider liability insurance to protect their assets in the event of a lawsuit. Celebrities who engage in risky behaviours or make controversial statements on social media are more likely to be sued and may find it challenging to obtain affordable insurance policies. Therefore, it is crucial for celebrities to work with trusted insurance brokers who can help them navigate the complexities of insurance coverage and ensure they have adequate protection for their wealth.
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Frequently asked questions
Celebrity insurance is a type of insurance that covers celebrities' health and wealth. It includes coverage for high-value personal items, travel, homes, employees, and even specific body parts that are crucial to their careers.
Celebrities often have high-value possessions and unique career-related risks that require specialised insurance coverage. They also face a higher risk of lawsuits due to their public profiles and are targets for nuisance claims.
Some notable examples include Bruce Springsteen insuring his vocal cords for $6 million or $9.3 million, Keith Richards insuring his middle finger for $1.6 million or $1.7 million, and Mariah Carey insuring her legs for $810 million.
While you don't necessarily have to be a celebrity to obtain celebrity insurance, you need to have a similar financial profile. It is designed for high-net-worth individuals with unique risks and valuable assets that require specialised coverage.
PCI is a leading private insurer of celebrities, athletes, and other high-profile individuals. Lloyd's of London is also a popular choice for underwriting celebrity insurance policies.
