Costa insures the tongue that can tell sweet beans from sour beans for £10m

Lloyd’s of London, the biggest insurance market in the world, has insured the tongue of Costa Coffee in case the company loses it’s market leader position. The insurance includes a policy of £10m but no one knows who the underwriters are nor how much premium fee Costa Coffee pays.

Mr. Pelliccia, who is the most important person of the business, tastes the difference between several flavours. He recognizes all kinds of aromas, flavours thanks to his taste buds and his sensory skills.

Lloyd’s of London is known to be the insurance market where everything can be insured. I think the way Lloyd’s operates is very good because they insure the most unlikely things. Things which contain an enormous risk once damaged or totally destructed like the WTC towers or other things like the chest hair of celebrities, Ugly Betty’s smile… Another reason why there are so many underwriters is that the policies include remarkable amounts which are too high to insure for one insurance company.

In my opinion this is a very good way to work because several insurance companies should work together so there is less competition. Also, it is not that strange that Lloyd’s insures Costa Coffee because Lloyd’s has already entered into more extravagant contracts. Insuring the unique taste of the coffee of Costa is a good measure to protect the product. For as we know there is a lot of competition going on, on the coffee market.

Sofie De Cooman

http://business.timesonline.co.uk/tol/business/industry_sectors/consumer_goods/article5870352.ece