27 Weird Types of Insurance You Never Knew Existed
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There's a wild world of weird types of insurance policies catering to the peculiar and unforeseen. From alien abduction insurance for extraterrestrial encounters to taste bud insurance for individuals whose livelihoods rely on their palates, the spectrum of insurance stretches into realms many might find whimsical or eerie.
Look at the 27 weird insurance policies we’ve compiled, highlighting human ingenuity in mitigating risks, no matter how unconventional they may be.
1. Alien Abduction Insurance
If you fear an invasion by extraterrestrial beings, alien abduction insurance has you covered. Alien abduction policies can include outpatient psychiatric care to deal with the fallout of having been taken by aliens, as well as sarcasm coverage to protect against the taunts of family and friends. The most noticeable carrier providing this unique insurance is the Saint Lawrence Agency in Florida, which since 1987, has sold over 6,000 policies.
2. Body Part Insurance
Body part insurance protects individuals whose careers significantly hinge on particular physical attributes from financial loss. This type of insurance is crucial for individuals like athletes, musicians, models and actors whose earning potential could be jeopardized by an injury or disfigurement to essential body parts.
Perhaps the most well-known example is the frontman for the band KISS, Gene Simmons, who insured his tongue for $1 million.
3. Fantasy Sports Insurance
In the realm of imaginative insurance offerings, fantasy sports insurance claims a unique spot, offering financial protection to participants of fantasy sports leagues in case a key player on their fantasy team gets injured, which could potentially derail their chances of winning. Typically, the insurance policy would cover the cost of the league entry fee and possibly additional compensation depending on the specifics of the policy.
4. Asteroid Insurance
Asteroid insurance insures against financial loss resulting from property damage caused by asteroid or meteorite impacts. This insurance should also cover third-party liability claims and might also cover lost income for a business if its operations have to temporarily close during the aftermath. While the probability of such celestial events is generally low, their potential for catastrophic damage is substantial, necessitating a form of financial protection.
5. Death by Laughter Insurance
In the annals of peculiar insurance policies, death by laughter insurance holds a distinctive place providing liability protection for entertainers in the rare, but not entirely unheard-of scenario, where an individual dies from excessive laughter. Comedians are likely the intended target customer for this type of coverage.
6. Paranormal Insurance
Paranormal insurance covers the bizarre and eerie domain of supernatural occurrences with financial protection against ghostly hauntings, vampire bites or werewolf attacks and other occurrences beyond the scope of normal scientific understanding. Specifically, paranormal insurance might cover your for liability in case a customer or visitor has been harmed by a paranormal entity or compensation for business interruption if supernatural activity allegedly makes business premises unusable.
7. Key Person Insurance
Key person insurance safeguards a business against the financial repercussions that may arise from the death or incapacitation of a key individual within the organization. The "key person" is usually someone whose knowledge, creativity, leadership or business acumen is deemed crucial to the company's financial health and operational continuity.
This insurance policy is taken out by the business on the life or health of such a vital individual, with the business listed as the beneficiary. The coverage typically includes life insurance and/or disability insurance, ensuring that the company receives a financial payout in case the key person dies or becomes unable to work.
The funds received from a key person insurance policy can be used to cover temporary staffing costs, recruitment of a replacement or even to offset lost revenue or ease the transition if the business has to be sold or closed.
8. Multiple Birth Insurance
Multiple birth insurance is a specialized insurance policy that provides financial assistance to expectant parents in the event of delivering multiple babies, such as twins or triplets. This type of insurance is structured to offer a lump-sum payment or other benefits to help offset the additional costs associated with raising multiple children, including health insurance, childcare or even the necessary home modifications to accommodate a larger family. This is especially helpful when you consider the fact that raising just a single child costs an average of $20,813 per year. Imagine what having twins would be like.
Parents can opt for multiple birth insurance during the early stages of pregnancy, after an ultrasound confirms a multiple pregnancy but before the babies are born.
9. Change of Heart Insurance
Change of heart coverage is one of those odd insurance policies that provides financial protection in the scenario where a wedding is called off due to one party getting cold feet. This type of insurance is designed to cover expenses such as deposits for venues, caterers, photographers and other vendors, which often have non-refundable clauses.
10. Wedding Insurance
Wedding insurance is designed to protect couples from unforeseen financial setbacks leading up to the day they tie the knot. Whereas change of heart coverage is specifically geared towards the bride or groom deciding not to go through with the wedding, wedding insurance is meant to cover canceling due to extreme weather, illness or other unforeseen circumstances.
It can also provide liability coverage in case of accidents or damages occurring during the event and may cover vendor-related issues like a caterer or drunk photographer inadvertently hurting someone while snapping pictures.
11. Collectibles Insurance
Collectibles insurance protects the financial investment collectors have made in acquiring unique, rare or valuable items. Whether it's stamps, coins, vintage toys, sports memorabilia or art, a collection can represent not only a significant monetary investment but also an emotional one.
This type of insurance provides coverage against risks such as theft, damage or loss, ensuring that the collector can be compensated for the monetary value of the items in case of such unfortunate events. Unlike standard homeowners insurance or renters insurance, collectibles insurance often provides a broader scope of coverage with higher limits to reflect the true value of the items accurately.
12. Niche Professional Insurance
Niche professional insurance is a policy used to provide a safety net in case a professional person is no longer able to work due to an unforeseen circumstance. While that may not seem particularly odd, and it isn't at face value, these policies are meant to guard against obscure perils. For instance, a photographer may take out a policy to avoid going broke if his primary model ends up getting married and is no longer available to shoot.
13. Lottery Insurance
Lottery insurance is designed to protect businesses from the potential financial hardship caused if one or more employees decide to quit abruptly due to winning the lottery. After all, businesses can spend 50% to 60% of an employee's annual salary trying to find a new hire and the losses may be higher if an employee was a key player in the business’s operations. If you have multiple workers up and leave their jobs because they won it big, your company could be out a hefty sum of cash and possibly a workforce.
14. Livestock Insurance
Livestock insurance is a crucial financial safeguard for farmers, ranchers and others involved in the animal agriculture sector. This insurance can cover a multitude of scenarios including but not limited to death due to natural causes, disease or accidents, as well as theft or injury. The policies might also extend to cover loss of income due to a decrease in production, such as milk or eggs, or due to government-mandated culling in case of a disease outbreak.
15. Bed Bug Insurance
Bed bug insurance covers the costs of extermination services, cleaning and replacing infested items. For homeowners or renters, your basic home insurance or renters insurance won't typically cover bed bug remediation and you would instead need to get a rider for your current coverage. And while landlords may not have to deal with the physical discomfort of bed bugs, they will certainly have to deal with the financial fallout of having to get rid of them if their tenants complain, making bed bug coverage essential.
16. Moving Insurance
Moving insurance is coverage designed to protect your personal belongings during a relocation process, whether it's a local move or a long-distance one. This insurance typically covers loss or damage to your belongings caused by accidents, mishandling, theft or other unforeseen events during the move and is usually offered by moving companies to their clientele.
There are different forms of moving insurance, including full value protection, where the moving company is liable for the replacement value of lost or damaged goods. This is typically the more expensive coverage. The other option is released value protection, which offers coverage based on the weight of the items at a specified rate per pound, potentially 60 cents per pound.
17. Falling Satellite Insurance
Falling satellite insurance is a unique insurance product designed to protect against the unlikely but potentially devastating event of property damage or bodily injury caused by debris from falling satellites. As nations and private entities continue to launch satellites into space, the amount of space debris orbiting Earth has increased, albeit the chances of debris causing damage remain slim.
For businesses, you'll have liability coverage in the event of injury or death caused by falling space debris. Property owners will typically have falling object coverage as part of the homeowners insurance, which may include satellites.
18. Thailand Riot Insurance
Thailand riot insurance was introduced around 2008 to safeguard tourists from financial loss due to injuries or delays caused by riots during their visit to Thailand. This initiative, which included a $10,000 coverage for tourists injured due to rioting, aimed to boost tourism during periods of political unrest. It was part of broader tourism stimulus efforts by the Thai government, which extended the insurance coverage alongside a free tourist visa scheme to encourage tourist arrivals amidst the challenging political climate.
19. Kidnap and Ransom Insurance
Kidnap and ransom insurance was created to safeguard organizations and individuals against the financial repercussions of incidents like kidnappings, extortions and unlawful detentions. This coverage generally encompasses the ransom amount, potential losses during its transfer and related unforeseen expenses resulting from such incidents.
The risk of kidnapping isn't limited to specific industries or businesses. It could arise from personal vendettas, animosity towards the company or even attempts to extract valuable company information.
20. Bicycle Insurance
Bicycle insurance is a tailored insurance product designed to cover scenarios like theft, damage or loss of the bicycle, whether due to accidents, vandalism or natural disasters. It can also provide liability coverage if you cause injury to others or damage to their property while on your bike. Some policies may extend to cover personal accident benefits, providing financial assistance for medical treatment or rehabilitation in case you suffer an injury while cycling.
21. Food Truck Insurance
Food truck insurance is a specialized insurance coverage that addresses the unique nature of mobile eateries combined with the culinary operations carried out within a confined space. This insurance typically encompasses various coverage aspects to ensure a holistic protection, including but limited to:
- Commercial auto insurance
- General liability insurance
- Property insurance
- Workers’ compensation insurance
- Product liability insurance
- Business interruption insurance
22. Facial Hair Insurance
An offshoot of body part insurance, facial hair insurance is a quirky insurance coverage aimed at individuals whose facial hair is considered an invaluable asset to their personal or professional brand, such as celebrities, brand ambassadors or individuals known for their distinctive beards or mustaches. The coverage provides financial protection against potential loss or damage to the facial hair which might adversely affect the individual's livelihood or public image.
23. Halloween and Haunted House Insurance
Halloween and haunted house insurance is a specialized insurance coverage designed to address the risks associated with hosting Halloween events or operating haunted houses. While these events are all in good fun, they also present a set of unique liabilities, such as a patron injuring themself while running away in fear or an employee in costume accidentally injuring a customer.
This insurance typically covers a variety of risks including, general liability, event cancellation and property damage coverage in case some rowdy patrons damage your business's physical assets. You may also get workers' compensation depending on your state's business requirements.
24. Party Guest Insurance
Party guest insurance is special event coverage that shields hosts from costs linked to liability claims, such as accidental bodily harm, property destruction or claims related to personal and advertising harm (slander/libel) that might occur during the event. While these incidents are typically unintentional, they can be expensive without coverage.
This insurance not only covers the event itself but also the setup and cleanup phases. Additionally, it may provide liquor liability protection for BYOB (bring your own booze) events, safeguarding against potential mishaps from guests who might consume too much.
25. Taste Bud Insurance
Taste bud insurance is designed for individuals whose livelihood heavily relies on their sense of taste. This peculiar insurance is not common but is indeed a real provision for a select few whose palate is their prized asset.
For instance, John Harrison is known for his skill in tasting ice cream and had his taste buds insured for a whopping $1 million by Dreyer’s. His job was to taste and assess the quality of ice cream, making his taste buds a valuable asset to the company.
26. Spaceship Insurance
Spaceship insurance, also known as space insurance or launch insurance, is designed to mitigate the financial risks associated with space exploration and utilization. Key coverage areas typically include:
- Pre-launch insurance: Covers the risks associated with the assembly, testing and transportation of the spacecraft and its components before the launch.
- Launch insurance: Provides coverage for the actual launch phase, protecting against failures that could result in a total loss or partial damage to the spacecraft.
- In-orbit insurance: Covers the operational phase once the spacecraft is in orbit, including coverage for collisions with other objects, system failures or other in-orbit perils.
- Liability insurance: Protects against claims arising from property damage or injury caused to third parties, either on the ground or in space, due to the spacecraft's operations.
27. Contest and Prize Insurance
Contest and prize insurance, or hole-in-one insurance, is a specialized insurance policy designed to cover the costs of prizes offered in contests, sweepstakes or promotional events conducted by companies or organizations. This insurance allows the promoters to offer large prizes to attract participants without the financial risk of paying out the prize from their own pockets.
Of course, if the contest is particularly difficult to win, the business would bring in revenue without having to issue the prize. However, if the perhaps rare event that somebody does win a prize like a brand new Tesla, the cost of it would be paid out by the insurance company.