CONTINGENCY & PRIZE INDEMNITY

Contingency insurance policies are designed to protect companies that sponsor unique games or contests where substantial prizes are available to winners. Predetermined odds are calculated in the unlikely event of a grand prizewinner. If a grand prizewinner is selected, Premier’s adjusters are assigned to evaluate the prize format, eligibility qualifications, computer-generated results, winner selection device(s) and other variables that pertain to insurance coverage.

We recently completed two successful prize indemnity inquiries with favorable results from Insurers:

1. Computer Generated Prize Indemnity Contest – The contest sponsor (a restaurant) claimed that a $500,000 grand prize winner had submitted a winning computer-based entry.  Our audit of the contest and computer generated odds discovered a programming error where the odds were incorrectly programmed.  The claim was then withdrawn.
2. A $200,000 joint prize promotion sponsored by a major clothing chain and a movie theater chain resulted in a grand prize claim.  Our investigation revealed that the grand prize “winner” was employed by the movie theater chain and therefore ineligible to claim the grand prize.  Insurer’s declined the claim.