The Holly's World star said she has taken out a policy with insurance company Lloyd's of London in order to protect her "assets".
Madison told People: "I've heard about people getting body parts insured and I thought, why not? Because if anything happened to my boobs, I'd be out for a few months and I'd probably be out a million dollars. I thought I'd cover my assets."
The model, who is currently starring in the Las Vegas show Peepshow, also joked that she is happy her breasts are so highly valued.
"I think they're getting the credit they deserve. They're my primary money makers right now," she teased.
Madison joined the cast of Peepshow in 2009, replacing former Dancing with the Stars winner Kelly Monaco.
Madison joined with Bridget Marquardt and Kendra Wilkinson to send messages of support to their former boyfriend Hugh Hefner following his June split from ex-fiancéee Crystal Harris.
> Holly Madison: 'I need a dependable man'
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Watch Holly Madison in a special Peepshow preview below: