If you read Wise Bread frequently, you know how important insurance is as part of a sensible financial plan. It makes sense to insure your home, your car, and carry health insurance. But over the years, insurance companies have developed policies to protect customers against all kinds of trouble, ranging from
natural disasters to identity theft,
and getting thunked by a foul ball at a baseball game.
Here are 10 of the most unique
insurance policies we've come
across:
1. Hole-in-One Prize Insurance
Have you ever seen a charity golf
tournament where they gave away a car or cash prize to anyone who got a hole in one? Tournament organizers usually protect themselves with insurance policies to cover the cost of prizes, just in case someone actually gets lucky.
Prize indemnification is its own
industry, and is often used for
similar promotions, like half-court
shot contests in basketball, or field
goal contests in football. Premiums for these insurance policies are relatively cheap due to the low odds of winning. One company, InsureEvents, says it has insured a $1 million hole-in-one contest for a mere $300.
2. Athlete "Loss of Value Insurance" During the recent NFL Draft, several players reportedly collected payouts from insurance policies after they weren't drafted as early as they had hoped. ESPN reported that Jaylon Smith, a linebacker from Notre Dame,
received $900,000 from such a policy after slipping to the 34th pick in the draft due to concerns over a knee injury. He could have received as much as $5 million had he been drafted higher.
3. Body Part Insurance
We all want to cover our body parts. But for some people, it's not just about clothes. Many people — often famous athletes or entertainers —will insure certain body parts that
they depend on for their livelihood. Rocker Bruce Springsteen has reportedly insured his voice with Lloyds of London for a cool $6million. Singer Dolly Parton had her
ample bosom insured for $300,000 each. And when football player Troy Polamalu signed a deal to endorse Head & Shoulders shampoo, Procter and Gamble took out a $1 million policy on his flowing mane. There are reports of policies for taste buds, fingers, buttocks, and nearly every other body part you can think of.
4. Riot Insurance
In 2010, the country of Thailand was afraid of losing tourism dollars due to political upheaval and protests. So it offered up to $10,000 to anyone experiencing loss or damage due to the turmoil. It also offered tourists up to $100 per day for travel delays caused by demonstrations.
5. Insurance for a "Change of
Heart"
It's a real bummer if your family
spends thousands on a wedding,
only to have you break off the
engagement. To protect against this possibility of cold feet, a company called Wedsure offers insurance that includes coverage for a "change of heart." In other words, you get your money back if the bride and groom decide to go their separate ways. There are a few catches, though. The coverage only applies to "innocent
financiers," such as the bride or
groom's parents, not the bride and
groom themselves. And the wedding must be cancelled at least 365 days in advance of the scheduled date.
6. Multiple Birth Insurance
Having twins is exciting, but it's also expensive. In Great Britain, it's possible to hedge against the
possibility of having more than one baby by buying special insurance. In essence, parents can buy insurance at the early stage of a pregnancy and then receive a lump sum of cash if they have a multiple birth. This insurance might make sense if you have a family history of twins, or if you've already had a multiple birth and can't fathom adding two or more children.
7. Insurance Against Death by
Laughter
Lloyd's of London is known for
covering a wide range of things, but the funniest might be the effort to insure a comedy troupe in the event that an audience member died from laughter. According to the BBC, this comedy troupe was so confident in
its humor that it asked Lloyd's for
insurance just in case the group was fatally funny.
8. "Essential Employee" Insurance
Imagine being so valued by your
employer that the company actually takes out an insurance policy in case you leave or pass away. Often called "key person" or "keyman" insurance, this policy offers a lump sum to cover costs like loss of business or training of successors. Usually, these insurance policies are designed to
cover the loss of someone who plays a key role in generating profits, or who has a unique skill set.
9. Lottery Insurance — For
Companies
Imagine that you own a company
and a large group of your employees entered a lottery pool, and won. You'd be excited for them, right? Well, that excitement might not last if half of your staff decides to retire on the spot. Lloyd's of London is
among the companies that offers
insurance for such a scenario, to
cover loss of productivity and the
hiring of temps and new staff.
10. Kidnapping and Ransom
Insurance
It sounds like something out of a
movie, but it's an actual thing. You
can protect yourself if you've been
kidnapped, and get reimbursed for any ransom money and expenses once you're freed. Truthfully, these policies are geared more toward businesses with high-profile employees. But individuals can get policies as well. Traveler's Insurance calls this policy a "must-have," and even produced a two-minute video about it.
What's the weirdest insurance policy you've ever heard of?
Article by Tim Lemke and originaly appeared on Wisebread