Sports/Prize Indemnity Insurance
Indemnity insurance for a promotion in which the participants are offered the chance to win prizes? That’s right. Instead of keeping cash reserves to cover large prizes, you pay a premium to an insurance company, which then reimburses the insured should a prize be given away.
One of the more common forms of prize indemnity insurance is hole-in-one insurance. Hole-in-one insurance reimburses tournament organizers for the cost of awarding a hole-in-one prize in the event a tournament participant successfully hits a hole-in-one during the tournament.
In addition to hole-in-one insurance, MDM Group can help you put together programs with coverage for other types of contests. For example, contest coverage can frequently be purchased for contests such as half-court shots in basketball, field-goal kicks in football, home runs in baseball and blue-line goals in hockey.
MDM Group put together indemnity insurance for a company that wanted to give away $10 million dollars if the randomly drawn contestant kicked a 50 yard field goal during a nationally televised New Year’s Day football game. Our client paid the premium which transferred the risk of losing $10 million dollars to the insurance company. Instead of being nervous about having to pay $10 million dollars, our client was rooting for the contestant to kick the field goal and win the money.