What Is Contest Insurance?
Contest prize coverage, better known as "contest insurance", is a contractual agreement that mitigates the risk involved in offering a large prize for a contest. For example, say you wanted to run a contest whereby contestants could win $100 by flipping a coin and having it land heads up. If you didn't want to be liable for the whole $100, you could purchase prize coverage for the contest. If a lucky contestant flipped a coin during the contest and it landed with heads up, the contest coverage provider would pay the winner their $100 prize, and you would not be liable for a dime. Now obviously no company is really going to offer "contest insurance" for coin flipping, but many firms do offer coverage for more difficult contests like sinking a basketball shot from half-court or a 35 yard field goal in football. As our name indicates, we specialize in hole in one contests for golf tournaments, though we do offer a complete lineup of prize coverages for other sports and media contests.