Prize Indemnity Insurance

Prize indemnity insurance lets a business, club or event organiser offer a large prize for a promotion or challenge and pay a premium instead of carrying the full cost if someone wins.

Common examples are hole-in-one prizes at golf days, sporting skill challenges at half time, and venue or retail promotions with a large headline prize. Our prize indemnity insurance and hole-in-one insurance guides go into detail.

What Insurers Need

• The prize and its value
• The rules of the challenge or promotion, and the odds of a win
• How entries and attempts are made, and how many there will be
• How a win will be verified, such as an independent supervisor or video

Why It Matters

• The premium is based on the odds and the prize value, so clear rules make it easier to price.
• Conditions are strict. If an attempt does not meet them, for example the wrong hole length or no approved supervisor, the claim may not be paid.
• Cover needs to be arranged before the event, not on the day.