Please enable JavaScript to view the comments powered by Disqus.

Personal Finance Advice from

10 Little-Known Types of Insurance to Protect You and Your Business

You can shield your finances from just about any type of disaster imaginable. But not all niche policies are good values.


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.

See Also on Kiplinger: 10 Insurance Mistakes to Avoid

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 $6 million. 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.


See Also on Kiplinger: Travel Insurance to Protect Your Vacation

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.

(Editor’s Note: Wedding insurance is one of five types of insurance policies that Kiplinger suggests you don’t need.)

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.

See Also on Kiplinger: 10 Surprising Things Insurance Covers

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.

This article is from Tim Lemke of Wise Bread, an award-winning personal finance and credit card comparison website.

More From Wise Bread

This article is from Wise Bread, not the Kiplinger editorial staff.