Yes. Here is an interview with a representative of an insurance company that provides these policies.
a celeb (or their agent) goes to a broker who helps them figure out the whole insurance situation. They’ll have to talk about what body part the celeb wants insured, ideally for how much, and if she wants it just for an event (e.g. VMAs, Grammys) — or forever.
Here is a primer from Slate:
... it's pretty easy to get disability insurance from standard insurers in the United States. To get insurance for a particular body part, though, you'll probably need to turn to the "surplus lines" market, which covers all the oddball risks that the regular companies don't handle.
Lloyd's of London has provided some of the most famous celebrity body-part policies, like those for Jimmy Durante's $50,000 nose, Bette Davis' $28,000 waistline, and Michael Flatley's $39 million legs.
Lloyds describes their history of insuring celebrity body parts.