What is contest insurance?

Contest insurance information from Interactive Promotions Group

Contest Insurance (otherwise known as Prize Indemnity Insurance) is indemnification insurance for a promotion in which the participants are offered the chance to win a prize. Instead of keeping cash on hand to cover large prizes, the promoter pays a fee to a company like Interactive Promotions Group, which then reimburses the promoter should a prize be given away.

One of the earliest and most common forms of contest insurance is hole in one insurance, which started to become popular in the mid 1980s. Often purchased by a golf outing organizer, hole in one insurance reimburses the outing organizer if a golfer in their event successfully hits a hole in one for a prize. For example, if the outing organizer and/or sponsor offers a vehicle as a prize for anyone who hits a hole in one on a particular par-3 and a lucky golfer actually hits the hole in one, Interactive Promotions Group would purchase that vehicle for the winner and the outing organizer and/or would be off the hook.

In addition to hole in one insurance for golf tournaments, contest insurance companies typically offer coverage for other types of contests as well. Examples of such contests include half court shots for basketball, field goal kicks for football, center ice shots for hockey and baseball tosses through a template for baseball. Contest insurance is not limited to just sports. A significant part of our contest insurance portfolio includes contests and games for auto dealers, retailers, TV and radio stations, casinos and online media outlets.