Not everything needs to be covered with traditional auto, home and life policies; sometimes unconventional policies provide protection for unusual items or situations such as coffee taster tongue insurance or chest hair coverage. These oddball policies offer protection for unique situations or items.
Though seemingly ridiculous, these bizarre insurance policies exist because someone fears losing something valuable. Read on to gain more insight into these strange yet real insurance plans!
Ghost policies are non-compulsory workers’ comp policies used by business owners who do not yet have coverage but need proof for clients or jobs. Although these policies tend to be cheaper than regular workers’ comp, they provide no actual protection.
Ghost policies are also increasingly used by subcontractors who need to meet specific insurance requirements for jobs or contracts without incurring higher premiums for traditional workers’ comp coverage. But be wary if ever hired by a company with one in place – expect an audit with potentially expensive fines or legal action as a result!
Insurance agents should remain alert for such unsettling policies and advise any clients against purchasing them, as these could be telltale signs of potential fraud and lead to costly consequences for both agents and clients.
Kidnap and ransom coverage (or K&R insurance, as it’s often referred to by insurance professionals) provides protection for travelers and businesses operating in volatile parts of the world against detention or ransom demands that could require illegal detention and demands. Additionally, this crime coverage often provides coverage for medical care expenses, PR consultation services fees, loss of business income compensation as well as travel expenses, relocation and job retraining costs incurred as part of this type of coverage.
K&R insurance may be purchased as an individual policy or provided through an organization which provides it to employees and travelers. Missionary groups or educational institutions offering overseas programs may also purchase this coverage to safeguard those traveling or who have high profiles.
Kidnap and extortion policies contain terms which stipulate they should only be disclosed upon safe circumstances by either an insured individual, their employer or family members – any disclosure could invalidate it altogether.
Alien Abduction Insurance
Alien abduction can be an unnerving thought, which is why many individuals choose to protect themselves by purchasing alien abduction insurance policies. While most standard policies don’t cover damage caused by aliens (unless it is specifically listed under fire or vandalism perils), IGAL INSIDER found one company offering such coverage.
According to the Alien Abduction Insurance Company website, its $10 million policy offers compensation if someone can prove they were abducted by aliens. Furthermore, it includes coverage against abuse incurred from immediate family members following abduction.
Though they claim only to have paid out two claims since 1987, this company has sold thousands of policies. Not only can you claim on alien abduction insurance policies with this provider, but you may also purchase raid coverage against Area 51 secret government base.
Body Part Insurance
Body part insurance is a specialized form of disability coverage purchased by celebrities, musicians, athletes and other high-profile individuals. As these policies are tailored specifically for them making them quite expensive to buy.
Celebrities often need to demonstrate that an insured body part is essential to their work, such as legs or vocal cords that if broken would result in significant income loss. Proving this point may be easier given their popularity and wealth which enable them to afford premiums on surplus lines policies.
Although it might sound bizarre, insuring specific body parts is actually quite practical. Many individuals already benefit from more general disability policies offered through their employer or life insurer; however, these policies are not typically available directly to individuals.