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Prize indemnity insurance is another insurance product that OneFee can help arrange for you through one of our insurance brokers.
When would you use prize indemnity insurance?
This is mainly used by promoters where there is one major prize.
For example, you invite consumers who have been participating in your golf competition to come along to the big prize final. Here they will each have a chance to play for £1 million. The underwriter will have agreed what the participants have to do to win. This could be to hit a hole in one or sink a long putt. Anyone who achieves this will win £1 million. This type of activity gives the promoter the ability to offer a big headline prize without the associated risk.
Another popular mechanic is to get the finalists into an event where they pick one envelope from 100, where one envelope holds a cheque for £1 million. The premium for this type of activity can be as low as £25K. Promoters should allow for the cost of an independent adjudicator to oversee the proceedings.
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