Introduction

Prize indemnity insurance provides coverage for the financial risk associated with offering substantial prizes or rewards in various types of promotions, events, and contests. It is designed to protect the promoter or organiser from the potential costs of fulfilling these prizes if they are won by participants.

Here are some key aspects that prize indemnity insurance covers: –

“Games of Chance”

A game of chance is a game where the outcome depends on luck, rather than skill.

Lucky Envelope Draw

Following a sales promotion, one customer is randomly selected from all entries to play a prize game, choosing an envelope from a pack of envelopes for the chance to win an insured prize.

Example  Headline: Fuel Up For Your Chance to Win $1 Million!
Example Mechanic: Spend more than $50 at a participating petrol station and enter for your chance to win $1 million dollars cash.

Wheel of Fortune

Following a customer feedback campaign, one customer is randomly selected from all entries to play a prize game, spinning a wheel for the chance to win an insured prize.

Example  Headline: Spin to Win $1 Million
Example Mechanic: Provide feedback about a product (or service) and enter for your chance to win $1 million dollars.

Lucky Dice Roll

Following a customer referral campaign, one customer is randomly selected from all entries to play a prize game, rolling dice from a cup for the chance to win an insured prize.

Example  Headline: Roll Your Way to $1 Million Cash
Example Mechanic: Refer 3 customers for your chance to win $1 million dollars.

Draw ‘N Match

Following a lead generation campaign, one customer is randomly selected from all entries to play a prize game, drawing cards until they match 5 of a kind for the chance to win an insured prize.

Example  Headline: Million Dollar Match ‘N Win
Example Mechanic: Get a quote for a product or service for your chance to win $1 million dollars cash.

Pick the Score

Following a social media campaign, one customer is randomly selected from all entries to play a prize game, to correctly guess the score of a sporting outcome for the chance to win an insured prize.

Example  Headline: Pick the Score, Win a Mil!
Example Mechanic: Take a photo wearing your favourite team jersey and post it to Instagram with the hashtag “ilovethe…team” for the chance to guess the score to win $1 million dollars cash.

“Games of Skill”

A game of skill is a game where the outcome depends on skill, rather than luck.

Kick for Cash

Following a sales promotion, one customer is randomly selected from all entries to play a prize game, to kick a field goal for the chance to win an insured prize.

Example  Headline: Kick for $1 Million
Example Mechanic: Spend more than $100 at a participating store for the chance to win $1 million cash.

Cross Bar Challenge

Following a social media campaign, one customer is randomly selected from all entries to play a prize game, to kick a ball and hit the crossbar for the chance to win an insured prize.

Example  Headline: Cross Bar Cash Contest
Example Mechanic: Take a test drive at a participating dealership to be automatically entered for the chance to win $500,000.

Target Throw

Following a customer referral campaign, one customer is randomly selected from all entries to play a prize game, to throw a ball through (or into) a target for the chance to win an insured prize.

Example  Headline: Million Dollar Target
Example Mechanic: Refer a friend and enter for your chance to win $1 million dollars.

Target Kick

Following a customer feedback campaign, one customer is randomly selected from all entries to play a prize game, to kick a ball through (or into) a target for the chance to win an insured prize.

Example  Headline: Kick for Cash Competition
Example Mechanic: Review our service to be automatically entered for your chance to win $250,000 cash.

Half-Court Basketball Shot

Following a lead generation campaign, one customer is randomly selected from all entries to play a prize game, to score from half or full-court distance for the chance to win an insured prize.

Example  Headline: Shoot Away for $500k
Example Mechanic: Get a formal quote from a participating outlet and enter for the chance to win $500,000.

Golf Hole-In-One

Brands and sponsors can purchase hole-in-one cover to offer a large insured prize on a hole at a corporate / charity / competition golf day.

Example  Headline: Million Dollar Challenge
Example Mechanic: All registered players are automatically entered for the chance to win $1 million by scoring a hole in one on a designated hole.

“Weather Promotions“

Weather promotions are typically tied to definable weather thresholds, such as temperature or precipitation.

Weather Winners

First 1,000 customers to buy an eligible product win a 5* Getaway if the rainfall exceeds 20mm on Australia Day.

Example  Headline: Win with the Weather
Example Mechanic: Buy a participating product online to be automatically entered to win a $5,000 holiday.

Raining Sales

Customers buy an eligible product and get all their money back if it rains more than 20mm on Christmas Day.

Example  Headline: Christmas Cashback
Example Mechanic: Buy a participating product and enter to get a full refund on your purchase.

Getting Hot

As the temperature gets hotter the cold beer gets cheaper.

Example  Headline: Hot Days, Cold Schooners
Example Mechanic: Visit a participating venue on Australia Day and get a free beer if the temperature hits 38 degrees celcius.

If you’re ready to get stuck into a promotion, we definitely recommend checking out our article, Complete Guide to Promotion Insurance.