WHAT'S IN A NAME? CONCERN-IF IT BELONGS TO A HIGH PROFILE PERSON

Rough Notes, Dec 2003 by Schiff, Samuel

Carnegie Insurance Service provides personalities, including sports figures, with necessary coverage

What's in a name? That which we call a rose by any other name would smell as sweet!

Romeo and Juliet

-William Shakespeare

That famous line, spoken by Romeo to Juliet, notwithstanding, being a well-known person or having a "name" in today's world may not be so sweet. Just reading the papers or popular magazines or watching television tells us that being a public figure comes with a price. There is no doubt that fame carries a heavy burden.

The threat of violence is always present in these calamitous times, but far more common in our litigious society is a lawsuit against a high profile individual. While the assertion may be frivolous, the cost of defending can run into thousands of dollars, and if the charge is proven true, the verdict can cost millions. While various means of protection exist-including a cadre of bodyguards, a fearsome or aloof manner that turns off the public, or becoming a hermit-the protection that is most sensible for today's high profile person is a personal umbrella liability policy.

That's where Carnegie Insurance Service Corp. comes in. Headquartered in Cleveland, Ohio, the company has been in business since 1971. In addition, Carnegie has branch offices in Chicago, Illinois; Merrillville, Indiana; and Sarasota, Florida. Although Carnegie writes a broad range of personal lines and commercial insurance, its particular niche is working as a managing general agent with independent agents and brokers who have high profile "target" clients.

"This would include entertainers, politicians, Fortune 500 executives, television personalities and professional athletes," says Alan Rubin, Carnegie's president. "All these people are candidates for lawsuits, and the umbrella policy provides them with necessary protection over and above any underlying policy or policies they may have such as homeowners and auto insurance."

Along with Rubin, who is also the chief executive officer, Carnegie's other top officials are Scot Russell, senior vice president and chief operating officer; and Tom Novak, senior vice president and chief financial officer.

Rubin points out that not all high profile people are created equal. "There are four classes of high profile persons," he says. "There's the local name, local name and face, national name, and national name and face, with the premium depending on what category the person falls into."

He goes on to explain each of the classifications:

The local name would likely be a radio personality, such as a disc jockey or radio reporter, newspaper columnist or political figure, including the mayor, councilmen, county commissioners, and others, "The size of the town is also a consideration," Rubin says, "and in this classification it's a population in excess of 25,000 people.

"The second category is a local name and accompanying face," he notes. This would include a local television personality, such as a newscaster or local company executive or advertiser. Elected state representatives, state and federal judges also fall into this group. In the entertainment sector there are talent agents, writers, producers and directors with prime time record, television and/or major motion picture credits.

"The national name category would be someone whose name is well-known but whose face is unfamiliar to the average person, with best-selling authors as a typical example," says Rubin. "Others would include lead writers, directors and producers of primetime television shows or motion pictures, chief executive officers of Fortune 500 companies, nationally known syndicated radio personalities, mayors of cities with a population of more than 250,000 persons and U.S. congressmen and senators who are not nationally recognizable.

"The national name and face category is the largest and the one most susceptible to problems," Rubin explains. "These are the people whose names and faces are recognizable in all sectors of the media." This grouping includes any professional sports figure, whether player or coach in the National Football League, National Basketball Association, Women's National Basketball Association, Major League Baseball and Soccer Leagues, National Hockey League, professional men and women golfers, wrestlers, boxers, tennis players and race care drivers. Also college football and basketball coaches are included. "Away from the sporting world the listing is also extensive," Rubin notes, "and includes any national television personality, such as news anchors, news show and talk show hosts and comedians, television and movie stars and popular musicians in all areas of the music world. In addition anyone else who has 'instant' recognition falls into the high profile insured category."

The majority of Carnegie's clients and the major portion of business come from professional athletes-particularly baseball, basketball, football and hockey players-and while the company is able to do business in all states, Ohio and Illinois account for the major portion of premiums followed by Indiana and Florida.