Prize Insurance
Prize insurance and fixed fee solutions that enable brands, agencies and promoters to offer prizes, rewards and incentives that would otherwise be beyond their budget, for a small, known premium. If someone wins, we pay. Used by major global brands and small local businesses alike, for over 20 years.
ABOUT OUR EVENT INSURANCE
Offer the prize you want without carrying the cost yourself
Prize insurance, sometimes called promotional insurance or fixed fee insurance transfers the financial risk of a prize payout from you to us. You set the prize and the promotion mechanics. If someone wins under those terms, we pay out. You pay a fixed premium, upfront, regardless of outcome.
This makes it possible to offer prizes such as cars, cash sums, holidays, high-value rewards that would be unviable if you had to fund them directly. The premium is typically a fraction of the prize value, so you get the marketing impact of a major prize at a manageable, predictable cost.
WorldWide Special Risks has been underwriting prize insurance for over 20 years, working with global brands, TV production companies, sports sponsors, marketing agencies and local businesses. Cover is available in over 70 countries, backed by Lloyd's of London.
Prize Competition Insurance
Skill, chance and response-based mechanics including hole-in-one, scratch cards, lotteries and more
Over Redemption Insurance
Protects your promotional budget from unexpectedly high coupon or reward redemption volumes
Conditional Rebate Insurance
Cashback and refund offers linked to external triggers, weather events, sporting outcomes and more
Contractual Bonus Insurance
Covers bonus obligations to athletes, teams or individuals based on performance milestones
TV & Media Promotions
Prize underwriting for game shows, broadcast competitions and digital media campaigns
Choose the right cover for your promotion
From a single hole-in-one competition to a national sales promotion or a TV game show prize fund, we structure cover around the mechanics and risk profile of your specific campaign.
Prize Competition Insurance
Skill, chance or response-based competitions including hole-in-one, longest drive, scratch cards, lotteries, safe crack, roll a dice and more.
Over Redemption Insurance
Promotional risk management for volume coupons, rewards and incentives. Protects your margin when a promotion outperforms forecast redemption rates.
Conditional Rebate Insurance
Cashback and refund promotions linked to external triggers, snow on Christmas Day, a sports team winning a championship, weather-based outcomes and more.
Contractual Bonus Insurance
Cover for teams, clubs and sponsors with contractual obligations to pay performance bonuses, relegation clauses, title bonuses, appearance fees and more.
What your event insurance policy can include
Prize Competition Insurance
Covers the cost of a prize being won in a skill, chance or response-based competition. This includes golf hole-in-one and longest drive challenges, lottery and scratch card promotions, safe crack competitions, roll a dice, and any other mechanic where a prize is offered for achieving a defined outcome.
Cover is available for single competitions and for repeat promotions across an annual programme. Particularly popular for charity golf days, corporate events, sports sponsorships and consumer brand promotions.
Over Redemption Insurance
Protects your promotional budget when a volume-based incentive a coupon, a cashback offer, a loyalty reward, is redeemed far more often than forecast. Most commonly used for on-pack sales promotions, BOGOF offers and reward-based marketing campaigns where uptake is difficult to predict.
Fixes your maximum exposure at the outset so a successful promotion doesn't become a financial liability.
Conditional Rebate Insurance
Covers cashback and refund promotions where the payout is triggered by an external event outside your control a sporting team winning a tournament, snow falling on Christmas Day, a weather event, an election outcome, or any other defined external condition.
Allows brands to offer genuinely bold, attention-grabbing promotions without carrying the exposure of a mass payout if the trigger condition is met.
Contractual Bonus & Sports Performance Insurance
Covers contractual bonus obligations for sports clubs, sponsors and commercial partners, promotion bonuses, title win payments, relegation clauses, player appearance fees and other performance-linked financial commitments.
Particularly relevant for club sponsors, kit manufacturers, commercial partners and broadcasters with performance-linked contractual obligations written into their agreements.
Case Studies
Three reasons to insure your prize fund
Offer prizes beyond your budget
A car, a six-figure cash prize, a luxury holiday, prizes that create genuine excitement and drive real engagement. Prize insurance makes them financially viable for any size of business at a fraction of the prize value.
Fix your cost, whatever happens
The premium is fixed before the promotion runs. Whether nobody wins or somebody wins on day one, your maximum exposure doesn't change. That predictability makes campaign budgeting simple and removes the financial tail risk entirely.
Deliver on your promise
If a winner is found, we pay. Your brand delivers exactly what it promised with no last-minute scramble to fund a payout or reputational damage from a prize that wasn't really available. Backed by Lloyd's of London, your winners get paid..
Built for any organisation running a promotion
Marketing Campaigns & Promotions
From national consumer campaigns to digital activations, prize insurance allows brands and agencies to offer standout rewards without the financial risk of an uncapped payout. Commonly used for on-pack promotions, loyalty schemes, social media competitions and new product launches where prize value is central to the campaign's appeal.
TV, Radio & Media Competitions
Game show prize funds, broadcast competition jackpots, listener and viewer prize draws, prize insurance is used by production companies and broadcasters to underwrite prize budgets for formats from quiz shows to talent competitions. We've provided prize cover for shows with prize structures similar to major household names for over two decades.
Sports Events & Golf Days
Hole-in-one competitions, longest drive challenges, penalty shoot-outs and skill-based prize contests at corporate golf days, charity tournaments and professional sporting events. Prize insurance makes it possible to offer a car or a large cash prize at a golf day without the organiser funding it themselves.
Sports Sponsorship & Commercial Partnerships
Kit sponsors, commercial partners and broadcasters with performance-linked financial obligations written into their contracts, promotion bonuses, title win payments, relegation clauses, use contractual bonus insurance to manage that exposure. If the team wins, the insurer covers the contractual payout.
Frequently Asked Questions about event insurance
What is prize insurance and how does it work?
Prize insurance, also called promotional insurance or fixed fee insurance , covers the cost of a prize being paid out in a competition or promotion. You pay a fixed premium based on the prize value and the probability of it being won. If someone wins under the terms you set, we pay the prize. If nobody wins, you keep your premium paid and your campaign cost is simply the fixed fee, there is no additional liability.
What types of prizes can be insured?
A wide range, cash prizes, cars, holidays, luxury goods, experience prizes and high-value rewards. The prize type needs to be clearly defined and the competition mechanics need to be documented, but there are very few prizes we cannot underwrite. If you have a specific prize or promotion in mind, contact our team and we'll assess whether we can provide cover.
Is prize insurance only suitable for large campaigns?
No. We work with businesses of every size, from local charity golf days offering a car for a hole-in-one, to national consumer brands running multi-market promotional campaigns. The premium scales with the prize value and the probability of a payout, so the product is accessible at almost any scale.
What information do you need to provide a quote?
We'll need to understand the prize value, the competition or promotion mechanics (how someone enters, what they need to do to win), the campaign duration, the expected number of participants, and the territory in which the promotion will run. The more detail you can provide, the faster we can assess the risk and turn around terms.
Can you cover promotions running outside the UK?
Yes. Through Lloyd's we can provide prize insurance in over 70 countries, including international marketing campaigns, global promotions and multi-territory activations. International promotions typically require individual underwriting consideration, so contact our team directly rather than using an online form.
How quickly can cover be arranged?
This depends on the complexity of the promotion. Straightforward prize competitions can often be assessed and quoted quickly. More complex mechanics, conditional rebates, performance-linked bonuses, multi-territory campaigns, take a little longer as they require more detailed underwriting. Contact our team as early in your campaign planning process as possible.
Can prize insurance be used alongside event insurance?
Yes and many of our clients use both together. A corporate golf day, for example, might need event public liability and cancellation insurance for the day itself, plus hole-in-one prize insurance for the competition element. We can arrange both under one conversation with our underwriting team.
Organising a
promotion ?
Tell us about your promotion and we’ll help put the right cover in place.