Ever heard of alien abduction insurance?

When most of us think about insurance, our minds jump to familiar risks such as homes, cars, businesses or travel.

But every now and then, a reminder comes along that insurance can be a lot more unusual than that.

Take alien abduction insurance. Yes, it really exists.

First appearing in the late 1980s, these novelty policies were created for people who wanted protection in the event of a close encounter with extraterrestrial life. One Florida-based provider has reportedly sold tens of thousands of policies, reportedly offering up to $10 million in cover for a one-off premium of around $20¹.

It's not just a phenomenon in the United States either. A London-based provider has also reportedly issued more than 30,000 policies across Europe, suggesting that plenty of people are at least open to the possibility that we're not alone in the universe².

As with any insurance policy, the detail sits within the wording.

Depending on the provider, cover has reportedly included compensation for psychiatric or medical treatment following an alleged abduction, loss of earnings and trauma-related support.

Some policies have reportedly even included compensation for the aftermath of an encounter, including dealing with the inevitable scepticism of family and friends.

There is, however, one obvious challenge.

To make a claim, policyholders are typically required to provide evidence that the encounter actually took place.

As you might imagine, that's easier said than done.

In perhaps the most unusual example, one American provider reportedly approved a claim after what was described as evidence linked to an alleged extraterrestrial encounter. According to media reports, the resulting payout was structured at $1 per year over 10 million years, rather than as a single lump sum. The insurer and policyholder eventually lost contact³.

While policies such as these are often created with a sense of humour, they provide an interesting reminder of the breadth and creativity that can exist within the insurance industry.

Insurance has historically adapted to new and emerging risks. Over time, insurers have been challenged to think differently about what might happen and how protection can be designed around evolving needs.

From highly specialised commercial risks to unusual niche covers, the principle remains the same: understanding risk and helping people protect what matters most.

Alien abduction cover is unlikely to appear on many insurance shopping lists, but it highlights something important about insurance.

Behind every policy is a person, family or business looking for peace of mind in an uncertain world.

Whether you're protecting your home, vehicle, livelihood or business, having the right cover in place can help you face the unexpected with greater confidence.

And while Everywhen aren’t in the business of arranging insurance for alien abductions, we can certainly help with your personal or business insurance needs.

Sources:

1. Insure yourself against paranormal activity

2. https://www.insurancebusinessmag.com/uk/news/breaking-news/nasa-discovery-prompts-insurer-to-offer-alien-invasion-cover-63200.aspx

3. https://www.insurancebusinessmag.com/us/news/breaking-news/abducted-by-aliens-theres-a-policy-for-that-173889.aspx

The information contained in this article is for general information purposes only. It does not constitute legal or other professional advice and cannot be relied upon as such. Should you have any queries, we recommend that you consult the appropriate professional adviser. The links provided in this document are for reference only. Please note that we are not responsible for the content of any linked site.