Prize Indemnity Insurance

Broadly speaking from the point of view of cover, Prize Indemnity can be separated into two areas:

Performance Sponsorship or Contractual Bonus

Corporate sponsorship is a key source of finance to the world of sport. Apart from the altruistic aspect, a company which takes on sponsorship aims to benefit in public relations terms from its links with a successful team, individual or sport. Normally a retainer is paid and an incentive arrangement set up, offering contractual bonuses related to achievements.

The format of incentive arrangements differs from case to case, but they are all capable of carrying insurance to cover the possibility of great success triggering maximum payments. The exposure to these schemes can be limitless, as can their application.

This type of cover can also be arranged when sponsorship is agreed, not for individuals or teams but for the prize itself or even for the actual event. Examples include:

  • A 'hole-in-one' at golf.
  • 'Roll-a-Dice' events.
  • A maximum '147 break' at snooker.
  • A 'nine dart finish' in darts.
  • A racehorse winning a 'Triple Crown'.

The application of this insurance need not be limited to sporting events alone – almost all walks of life can produce events or actions where possible exposure to financial risk could be afforded cover.

Prize Indemnity Insurance

Promotional Prize Indemnity Insurance

Types of risk covered here are connected with promotions or promotional games, which involve the public at large. A manufacturer may devise a competition designed to increase the profile and ultimately the sales, of particular products. Insurance cover will allow the company to offer a large prize against a relatively low cost whilst gaining maximum promotional coverage.

Good examples of this type of promotion can be seen in the many competitions on offer in the daily newspapers, who seek to increase circulation by offering readers free entry into high value competitions. The format normally involves forecasting or predicting (such as 'all-time best England cricket team') or choosing ten winners from selected events in the Olympics, or perhaps a simple lottery type arrangement.

Manufacturers and retailers who run schemes to encourage product purchase also use this type of insurance. The ideas take many forms but usually involve a refund of purchase price if certain 'conditions' are met (for example, goods purchased in a particular period are 'free' if it snows on Christmas Day).

The range of applications for promotional indemnity insurance is virtually limitless and we are always available to consider any proposals within these fields being specialists in tailoring products to individual needs.

Contact us for a Prize Indemnity insurance quote

To discuss an insurance quote, please contact our Contingency insurance team on:

Telephone: +44 (0)20 7090 1109

Email: contingency@griffithsandarmour.com

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

YouTube icon   Twitter icon   LinkedIn icon
& that's the difference