LIABILITY Insurers scrutinize reality TV

Insurance companies help remove some of the risks.
MINNEAPOLIS-ST. PAUL STAR TRIBUNE
Last month, millions of television viewers watched scantily clad contestants on the NBC reality show "Fear Factor" dip their heads into vats of animal lard to retrieve cow tongues and then exchange them using their mouths.
Perhaps no one was watching the stunt more closely than Jon Paulsen, chief underwriting officer of the entertainment division at Travelers Companies, which insures "Fear Factor" and several other popular reality shows.
Three weeks earlier, Paulsen and his team of risk-control analysts had questioned, analyzed and triple-checked every detail of the stunt. The cow tongues had to be properly cooked and certified as safe to eat by the U.S. Department of Agriculture; the animal lard had to be fresh from a supermarket freezer.
"Watching television has changed for me," Paulsen said. "I chew my nails hoping they do exactly what they said they would."
Many new shows
This fall, the networks unveiled nearly a dozen new reality shows, including "Renovate My Family," in which entire families receive make-overs, "The Contender," one of two new shows featuring ordinary folk sparring in the ring, and "The Benefactor," in which a billionaire businessman gives away part of his fortune.
That's on top of the regular lineup of return hits such as "Survivor," "The Bachelor" and "Joe Millionaire."
Love or loathe them, the shows would not exist were it not for a handful of big insurance companies, including St. Paul Travelers, American International Group of New York and Fireman's Fund Insurance Companies of Novato, Calif.
Before contestants of "Fear Factor" can jump from helicopters or "Survivor" participants can paddle up a muddy river in the Brazilian jungle, the TV producers must find companies willing to compensate them in case someone breaks a limb or returns home with mental scars.
Just five years ago, some media analysts thought the genre would fail precisely because it was so difficult to insure. A handful of multimillion-dollar lawsuits would lead to soaring premiums, they predicted, and that would force producers to go back to making more cerebral drama shows, such as "Law and Order" or "The Practice."
Removing the risks
But surprisingly few incidents have occurred, and the insurance companies deserve much of the credit for working behind the scenes to remove risks, say media analysts.
"One death. One dismemberment. That's all it could take to end reality television," said Kenneth Wefer, owner of LMC Group, an engineering company based in Los Angeles that helps insurers evaluate stunts. "That's why it's crucial that insurers are involved. ... Without them, reality TV might not exist."
But the risks of reality programming have grown with each new season. Many of the earlier concepts are beginning to bore viewers, and networks are under pressure to come up with fresh stunts and more offbeat concepts. Although lawsuits are few, they are starting to materialize.
"We do insure some reality TV, but it is getting more and more difficult as the shows get increasingly outrageous," said David Hilgen, a spokesman for the Chubb Group of Insurance Companies in Warren, N.J.
They still can sue
Unpredictability is part of the allure of reality TV, but it's also what makes it a risky bet for insurers. Even those who emerge from the stunts unscathed can sue for character defamation or emotional distress. Contestants typically sign thick waivers promising not to sue, but a sympathetic judge can dismiss these waivers if the show's producers are found to be negligent.
"If someone is seriously hurt, they will find ways to poke holes in the waivers," said John Hamby, senior vice president and entertainment practice leader at Marsh of New York, one of the world's largest insurance firms. "They can always say they didn't really understand what they were getting into."