Prize Indemnity

Your company wants to run a contest and offer a big prize to attract customers in a new market segment that you are entering. Question is, how to cover the cost of the prize without exceeding your market launch budget.

A big client has asked you to sponsor a hole-in-one at their charity golf tournament and they want to offer a luxury car as a prize. The price of the car will be more than the client pays you in a year! What to do?

Prize Indemnity insurance is the solution in both instances. Prize Indemnity allows the contest sponsor to leverage a relatively small expenditure into a major prize.

Prize Indemnity is part of a category of insurance called Contingency and it works by transferring the risk of someone actually winning a prize (resulting in a payout) to an insurance company. The insurance company calculates the statistical odds of someone actually winning the prize and bases the cost of the Prize Indemnity coverage on the probability of a winner. Contest rules are put in place to ensure no participant has an unfair advantage.

The use of Prize Indemnity is really limited only by the imagination since new contests involving skill or chance are conceived every day by marketing teams. Some of the common uses include:

Sports and skill-based events:
  • Hole-in-one (check out our Tee-to-Cup Program!)
  • Shoot the Puck
  • Basketball Shots
  • Soccer or Football Kicks
  • Predicting the score in a game
Consumer sales promotions:
  • Sweepstakes
  • Online promotions
  • Scratch and win games
  • Collect and Win games
  • If X happens, we will give away Y


Tee to Cup!
ONLINE purchase of Hole in One Insurance

Purchase your Hole in One Insurance online In less than 5 minutes. Upon acceptance of your credit card information, you will instantly be emailed your binder of insurance and policy wording. Note, some restrictions apply. Click here for all the details.


Alan Hollingsworth

Practice Leader, Partner, Vice President HUB International HKMB, Toronto
Phone: 416-597-4628

Alan leads HUB Ontario’s Entertainment, Media and Sports practice. He is a former Board Member of the North American Contingency Association (NACA) and he has arranged coverage for the majority of the large sport-focused prize promotions in Canada.


Amanda Shyhinskyj

Team Leader, Account Manager
Phone: 416-597-4018

Amanda is a participating member of NACA