Prize Indemnity Insurance
If your organization would like to host a large event with spectacular prizes, but does not have cash reserves sufficient to cover contest winners prize indemnity insurance could be the answer.
Perhaps, your agency has been asked to think outside the box for big promotional ideas. Direct Event Insurance can help you make a lasting impression.
In these situations, and more, prize indemnity insurance can make you look like a rock star. By streamlining our application process we give you the gift of time to do the more enjoyable parts of event planning. The pressure of how to pay the winner disappears and replaced with a sense of confidence. Direct Event Insurance has you covered in the event of a contest participant sinking that un-makeable shot.
Prize indemnity insurance is also referred to as “hole in one insurance”, but is purchased for any event offering a prize of substantial value. Purchasing the indemnity insurance for prizes awarded at the event can let your organizers enjoy the event and not secretly root against the competitors.
In addition to hole in one contest coverage, prize indemnity insurance also covers:
- Half-court basketball shot contests
- Football game field goal contests
- Hockey blue line goal contests
- Retail contests
- Casino and resort giveaways
Prize indemnity insurance is indemnification insurance for a promotion in which the participants are offered the chance to win prizes. Instead of keeping cash reserves to cover large prizes, the promoter pays a premium to an insurance company, which then reimburses the insured should a prize be given away.
Prize Indemnity is part of a category of insurance called Contingency and it works by transferring the risk of someone actually winning a prize (resulting in a payout) to an insurance company. The insurance company calculates the statistical odds of someone actually winning the prize and bases the cost of the Prize Indemnity coverage on the probability of a winner. Contest rules are put in place to ensure no participant has an unfair advantage.