Contest & Prize Insurance
Contest/Prize Insurance is an opportunity for business owners to
transfer to an insurance carrier the financial liability associated
with prizes offered in competitions. Using this risk transfer
mechanism, business owners can enhance the value derived from
promotions, games and contests. These competitions, while obtaining
the maximum impact afforded by offering larger prizes, can still be
cost effective and within a given budget.
Actuaries compute the statistical odds of the prize being won and
then use these probabilities to calculate the cost of coverage. We
have designed programs that offer large prizes for a fraction of
their cost. We apply insurance coverage to eliminate the risk of
paying out the prize if there is a winner. The results are secure,
high impact programs that deliver on your specific objectives.
Sample risks that may be covered:
Sports and skill-based events:
- Hole-in-one
- Basketball Shots
- Soccer Kicks
- Football Kicks
Consumer sales promotions:
- Online promotions
- Scratch & win games
- Collect & Win games
- If X happens, we will give away X
The application of prize indemnity is infinite and the benefits can be vast. Contact a Corporate Risk Specialist today at info@underwritingpros.com .
