Prize Indemnity Insurance
Prize Indemnity Insurance covers your cost of paying the value of a prize to a third party, allowing you to insure against the risk of the prize your business is promoting at your venue or event as part of the competition being won. These can be prizes such as cash bonus for “hole in one”, cash grabs and casino giveaways.
Hole in one
Helps the organiser avoid the financial risk of paying for the prize if a hole-in-one occurs.
Lucky Door
Covers the prize provided for the lucky winner selected from the participant pool.
Promoters
Eliminate the promoter’s financial risk of giving out expensive awards if a participant wins.
Raffles
Covers the prize cost if awarded to the winner selected from the pool of ticket holders.
Sponsors
Protects the sponsors from financial risk.
Event Organisations
Involves organising and overseeing events that give prizes, with the use of insurance to pay the cost of the award if it is granted.
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What is Prize Indemnity Insurance?
Prize indemnity insurance is a specialised insurance product made to shield event planners, promoters, or sponsors from the financial risk of having to give away expensive prizes like “hole in one”, cash grabs, soccer goal, rugby goal or basketball shot. Events can provide alluring rewards without worrying about money because the insurer pays the prize payout rather than the organiser.
What type of events or prizes can be covered by Prize Indemnity Insurance?
There are several types of events and prizes covered by Prize Indemnity Insurance. Kindly note that the prize and event must meet the insurer’s underwriting criteria.
Events
- Golf Tournaments
- Charity Fundraisers
- Promotional Contests
- Sporting Events
- Carnivals or Festivals
- Corporate Events
Prizes
- Gift Cards or Vouchers
- Merchandise
- Unique Experiences
- Cash Prizes
- Vehicles
- Travel Packages
- Electronics
What factors affect the cost of Prize Indemnity Insurance?
- Value of the Prize – Higher-value prizes result in higher premiums.
- Odds of Winning – Lower odds (e.g., a rare hole-in-one) usually mean a lower premium.
- Number of Participants – More participants increase the likelihood of a prize being awarded, raising the cost.
- Type of Event – Different events, golf tournaments, raffles, etc., have varying premium structures.
- Event Duration – Longer events or series of contests may raise costs due to extended risk.
How do I choose the right Prize Indemnity Insurance policy for my event in Australia?
- Define your event type and prize details
Determine the value of the reward, the probability of its prize, and the quantity of participants. The premium will usually be lower for events with low winning odds, such as a hole-in-one competition. Since there is a greater probability of a prize being claimed for more frequent prize offerings, such as raffles, the premium may go up.
- Evaluate the coverage and policy terms
Ensure that the prize value is covered by the policy while looking for any extra coverage, such as taxes or promotional costs. Be sure that the policy covers the entire period of the event and be mindful of any exceptions. Whether it’s a sports competition, raffle, or sweepstakes, be sure the rules are unique to the risks associated with your event.
- Compare quotes from different insurers
Work with Knightsbridge Insurance group to review the quotes to find a trustworthy insurer with solid claims procedures and prize indemnity insurance experience. Consider the support and customer care provided by the insurer, particularly in the case of a claim. Selecting the best coverage for your event will be easier if you compare costs and comprehend the conditions and claims procedure of the insurer.
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Why work with Knightsbridge Insurance Group?
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Prize Indemnity Insurance covers your cost of paying the value of a prize to a third party, allowing you to insure against the risk of…