Promotion Protection Insurance

Because your events can always use an extra boost to stand-out

Prize indemnity insurance covers contingent prizes on behalf of sponsors or promoters. Prize insurance allows the sponsor / promoter / organizer to offer a large, risk-free prize for only a fraction of the cost. Some examples include probability-based prizes such as drawing the correct envelope, dice rolls, spinning a wheel, etc., and skill-based prizes such as sinking a 60-foot putt, shooting a basketball from half-court or making a field goal from a certain distance.

Over-redemption insurance allows a marketer / sponsor to transfer the risk of a coupon or free product offer that is "too successful". Sponsors / marketers often will distribute coupons, “buy one, get one free” or multi-purchase benefits to increase awareness and sales of their products. Our coverage allows sponsors to protect themselves against an unexpected high redemption of those coupons.

Contractual bonus insurance is coverage that is purchased mostly by corporate sponsors to give professional athletes an additional financial incentive in their contract to achieve a certain result. For example, a professional golfer could earn an extra $500,000 for every major championship that he / she wins, in which case, the risk of the additional $500,000 would be transferred to an insurance policy.

Promotion bonds, also known as game of chance surety bonds, are required in Florida and New York for any game of chance promotion over $5,000 in retail value. The promotion must be bonded and registered with their office. Rhode Island requires only a registration for any retail promotion over $500. No other states require these promotions to be bonded. ESP Specialty can streamline this entire process for our clients.

Summary of Coverage

Prize indemnity insurance

Games of skill for sporting-related contests includes coverage for basketball half-court shots and parlays, football tosses and field goal kicks, hockey slot shots and golf putting and hole-in-one contests

Games of chance such as dice roll games, spin-the-wheel games, the lucky envelope game and more

Over-redemption insurance

Contractual bonus insurance

Promotion bonds

Target Insureds

Integrated marketing agencies


Athletic organizations

Golf courses

Nonprofit organizations

Standard Limits

Limits vary by promotion

Available Limits

Up to $10 million with more available subject to market support for insured promotions, over-redemption and contractual bonus

Up to $10 million for promotion agency E&O

Minimum Premium

Minimum premiums are subject to risk purchasing group program restrictions only.

Geographic Scope

Available worldwide