Lotteries and promotional games insurance

This special form of insurance was formulated by Adam Brothers Contingency in 1968, in response to the perceived need for protection of promotional games companies and to offer security to their principals in the event of a serious defect in the production of promotional games material. Cover can also be afforded for defects in the formulation of commercial marketing and sales promotions.

Coverage is constantly refined and improved to maintain its suitability for the promotional games suppliers.

Underwriters and ourselves understand that most businesses have some aspect of their trade that requires particular attention and policy wordings can be tailored, as appropriate, to suit individual cases.

We have, with underwriters, acquired an extensive knowledge and experience of the lottery and commercial games business over the last twenty years and are committed to writing this unique class of business for the long term. Underwriters have been consistent throughout in the pricing of the coverage and have avoided the fluctuations, which have been known to arise during hard and soft insurance market conditions, aiming to give clients confidence and assurance of future coverage and pricing.

Summary of coverage

The policy addresses the coverage by the provision of two sections:

• The first section covers the supplier for his responsibility under his contract with his principal to fund the cost of additional prizes which need to be paid to legitimate winners and where the agreed prize fund stated as available to be won is exceeded with respect either to the promotion or game as a whole or to the prize fund for each designated level, that is for 1st, 2nd, 3rd, etc.
  
  
• The second section addresses the responsibility of the supplier in the event of a promotion or game having to be cancelled or withdrawn. This covers refunds of the costs of tickets and the expenses and increased costs and cancellation charges incurred by the principal because of the problem.

It is not intended to cover fraud and underwriters do not generally cover probability games as they are notoriously exposed to the risk of being broken.

Adam Brothers Contingency is part of Griffiths & Armour Global Risks.