Tom Jones International

Remember all the fuss about Tom allegedly insuring his chest hair? Well, the editor of a business magazine contacted Ellen (who writes for them each month) in February saying, “I know it’s a dull topic, but can you think of an insurance story for our March issue?” At that exact moment, Ellen was looking at a news story about Tom allegedly insuring his chest hair, so she forwarded the article to the editor with a suggestion that the story be about odd things people can and do insure. The editor liked the idea, the story was done and — to explain about how such things work and whether it is possible to insure chest hair — we’re posting it here.

The article is from the March 2008 issue of Long Island Magazine, published by the business group the the Long Island Association. The story is not on their website. And, after the stuff about how Lloyd’s works and its history, there’s actually information on chest hair insurance. And, for the record, Ellen resisted the strong urge to comment on insuring the voices of R. Stewart and B. Dylan. She also sent them a photo of Sir Tom that clearly shows off his assets. They didn’t use it. But if you read to the end, you’ll find out whether or not one can insure chest hair.

From Smiles To Chest Hair: The Unique Things People Insure

Every so often there’s a news item about something unusual being insured by Lloyd’s of London. In February it was a widespread report that singer Tom Jones had insured his chest hair.

Why would anyone even believe that story? Well, there are precedents for such unique insurance. In the 1940s, 20th Century Fox insured the legs of World War II pinup girl Betty Grable for $1 million each. In the 50s, British food critic Egon Ronay insured his taste buds for $400,000. Bruce Springsteen, Bob Dylan and Rod Stewart have each insured their voices.

When you read about such items being insured, you usually read that it is Lloyd’s of London who insured them. But, technically, it is not. As people from Lloyd’s will tell you, Lloyd’s of London is an insurance market. Through Lloyd’s, multiple financial backers or (or “members”) — individuals or corporations — come together to pool and spread risk.

The Lloyd’s website calls Lloyd’s “the world’s best known — but probably least understood — insurance brand.” This is because Lloyd’s is not a single insurance company but a society of members who underwrite in syndicates on whose behalf professional underwriters accept risk.

It began in 1688 in a London coffeehouse owned by Edward Lloyd and today is home to highly skilled underwriters ever willing to venture into new insurance territory — kidnap and ransom, space and aviation, cyber-liability — while continuing to offer more traditional insurance.

Lloyd’s is part of 
the “surplus lines” industry, insurance covering hard-to-place risks that are not written by the standard insurance markets.

The site explains, “Lloyd’s brokers bring business to the market. The risks placed with underwriters originate from clients and other brokers and intermediaries all over the world. Together, the syndicates underwriting at Lloyd’s form one of the world’s largest commercial insurers and a leading reinsurer. 

The market structure encourages innovation, speed and better value, making it attractive to policyholders and participants alike. “

There are three categories of surplus lines risks: “Non-standard” risks have unusual underwriting characteristics. “Unique” risks are those for which carriers do not offer a standard policy form or rate. “Capacity” risks are those for which a client seeks a higher level of coverage. These risks include aviation, product liability, inland marine, earthquake, and professional liability. All of these, not readily available from your neighborhood insurance broker, are available through Lloyds.

Since 1906, Lloyd’s has been active in the United States. Their entry into this market came following the San Francisco earthquake. Lloyd’s paid out more than $8 billion to cover losses following 2005 Hurricanes Katrina and Wilma.

But, in the more arcane areas of insurance, Lloyd’s communication director Louise Shield says, “We insure a body part if that body part contributes to a person’s employment. Thus, if a footballer becomes disabled, we will cover them. We also insure cricket teams and basketball teams, as well as aircraft, ships and the airbus.”

So, let’s say, you live on Long Island and want to insure an unusual collection of coins, or those hands that earn you millions as a pianist or, even, your taste buds. How do you do it?

Well, according to Linda Bourn, a managing director with Marsh, one of the largest insurance brokers and strategic risk advisors in the world, “Your broker can approach one of a handful of global brokers who, in turn, can reach out to markets around the world for coverage.

“Our clients may own high-end property around the world and want it all covered. Or, perhaps, we may have a family traveling to less secure parts of the world. If they want to be sure they are covered and have the most secure travel plans, they can work with us.

“Often,” Bourn adds, “domestic carriers cannot provide the coverage or cannot offer the terms conditions and limits overseas carriers can.”

As for the kinds of insurance that make the news — particularly celebrity body parts — Bourn says there’s little call for that. “We tend to handle tangible assets like antique auto collections, antique duck calls and coins.”

For these needs, there are Marsh offices on Long Island. If you are looking for more exotic coverage than the local office can provide, Marsh will work with a global broker like Lloyd’s to secure it.

It is worth noting, by the way, that there is seemingly little or nothing deemed too exotic for Lloyd’s. In a list of “examples of unusual risk” they distribute to press, they include coverage for: inventors and entrepreneurs for their ideas and also the value of their patents; unforeseen developments such as new roads or cell phone towers which may decrease the value of private properties; the chance of the Academy Awards being canceled for anything from terrorist threat to fire. In 2004, Lloyd’s insured the £27 million worth of jewelry worn by the stars at the Oscars.

Lloyd’s insures the blue-braced smile of America Ferrara, star of Ugly Betty, for $10 million. They insured Marlene Dietrich’s legs and they paid out on an insurance policy for Rolling Stones guitarist Keith Richards when he injured his finger on tour in the 1980s.

But, Tom Jones’ (or anyone’s) chest hair? As a matter of record, in 2004, the company says, “Lloyd’s developed a policy to cover loss of chest hair which could adversely impact one’s image or career. Under the terms of the policy, the policyholder would have to lose more than 85 percent of his chest hair through an injury to his chest in order to make a claim. This loss would then have to be verified by a panel of trichologists.”

So, no, Tom Jones’ chest hair is not insured. But that doesn’t mean his — or yours — cannot be.