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The Cost of Covering Lohan

Oct. 27 2008, Published 7:07 a.m. ET

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CO-PAY Lindsay

The fall out from Lindsay Lohan's recent arrest has been enormous, like a white dwarf of celebrity exploding before our very eyes. The aftermath includes a re-up on rehab, a looming court date, and potential incarceration, but one of the most discussed topics is the question of whether the actress will be able to find work should she serve time. The official word from Hollywood underwriters? She will work again, but it's going to be on her own dime.

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The Chicago Sun Times reports that Ron Hickman, the producer of Lindsay's next film, Poor Things, stands behind the project but has not mentioned the actress when speaking to the press. This sort of treatment has led to wild speculation that the actress will be replaced by someone less costly in future projects.

To get to the bottom of it all, Radar called Wendy Diaz, the entertainment underwriting director for Fireman's Fund, one of the largest film insurance companies in Hollywood. What we discovered is that Lindsay's partying ways might be a liability to studios, but it will be more costly for the actress herself.

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