What is prize indemnity insurance?
Prize Indemnity Insurance covers the loss an event holder suffers when a contestant wins a large prize such as a car, vacation, or anything of substantial value. It enables event planners, organizers, and promoters to offer exciting contests with prizes that greatly exceed their budget. It can also be referred to as “contest insurance”.
By insuring the amount a participant may win, the risk of loss is passed to the insurer, which in this case is Direct Event Insurance. Generally, the cost to purchase a prize indemnity policy is minimal compared to the prize it covers. The small investment is recouped through higher attendance, community visibility, and revenue.
This contest coverage empowers your creative energies by expanding the scope of activities you can offer. A variety of different events can be held that will exceed your clients expectation.