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Prize indemnity and hole-in-one Insurance

Take the financial risk out of promotional campaigns. We can arrange prize indemnity insurance to help cover major prizes.

1300 655 931

What is prize indemnity insurance?

Offering a prize through a promotion or contest is a great way to boost your brand profile.

Prize indemnity insurance and hole-in-one insurance let businesses run promotions or events with high-value prizes they may not otherwise be able to afford. If someone wins, the insurance provider can cover the cost of the prize.

Prize indemnity cover lets you be flexible within a fixed budget. You can attract more contestants and generate greater excitement around your promotion or contest knowing you won’t need to self-fund a valuable prize.

Who can prize indemnity insurance cover?

We can arrange tailored prize insurance solutions for a range of businesses – including:

  • Clubs and pubs
  • Casinos
  • Television networks
  • Radio stations
  • Marketing companies
  • Large corporates
  • Small businesses
  • Shopping centres
  • Sports teams.

Can’t see your business or specialty listed? Speak to a Marsh broker.

What types of prize insurance solutions can Marsh arrange?

Pick to win

Pick-to-win insurance covers prizes that are concealed and chosen at random. For example, a participant chooses one envelope from a number of other envelopes. Some of them contain self-insured consolation prizes; one envelope contains the insured prize.

High fives

High-five insurance covers prizes won based on matching envelopes with one another. There may be 40 envelopes: five with $50,000, six with a chosen prize level, and 29 with self-insured consolation prizes. If a participant matches five of the same envelopes, they win your insured prize.

Level up

Level-up prize insurance covers prizes won by correctly choosing envelopes in ascending order. A participant picks one envelope from ‘Level One’. If it contains the insured prize then they pick from ‘Level Two’. If they pick the insured prize all the way to the final level, they win.

Heads or tails

Heads or tails prize insurance covers prizes won in a guessing game. If there are 10 envelopes, five with ‘heads’ and five with ‘tails’, a participant has to choose five of the same symbol to win the insured prize. If they don’t, they win an uninsured consolation prize.

Why choose prize indemnity insurance with Marsh?

75+ years’ experience

With more than 75 years of combined experience, we are the leading specialists in this demanding and lesser-known insurance class.

Tailored solutions

We understand some businesses need to consider outside-of-the-box promotions. Contact us to get a prize indemnity insurance solution tailored to you.

Wide-ranging expertise

Our specialist brokers have arranged tailored solutions for businesses including not-for-profits, casinos, and nationwide TV stations (to name a few).

Why use a broker?

Choosing prize indemnity insurance means navigating through products, coverages and policy terminology – with a sales pitch as your only guide. A broker who specialises in hole-in-one and prize insurance can spot your unique set of risks, match you to the right choice, and advocate for you on price.

Frequently asked questions

You can select a prize insurance solution you think will best resonate with the clientele you want to attract.

We’ve made the process simple:

  1. Decide on the best prize draw for your promotion and budget. Contact us for advice and a tailored insurance policy.
  2. Prepare your terms and conditions. Some states might also require you to have a permit – see the below FAQ to find out about your state’s regulations.
  3. Design the artwork (in A5) you want included on your envelopes.
  4. Email the design to the loss assessor to be packed into the envelopes. The assessor will send you all the envelopes within a week of the draw.
  5. Once you’ve received your envelopes, run your prize draw!

When arranging prize insurance, we recommend leaving yourself plenty of time before your prize draw. Take the time to seek out legal advice on your terms and conditions and apply for a permit (if you need one). Permits can take up to 10 days to be processed.

Finally, make sure to get the word out about your promotion! Social media, print and radio campaigns, posters and word-of-mouth can all help to drum up a buzz.

This depends on which state or territory you live in.

Each Australian state and territory regulates promotions separately. Some require you to have specific terms and conditions and permits to run them; others will only need you to be compliant.

Find out about your state or territory’s regulations at the relevant link below:

Understanding what a prize draw looks like in practice can be tricky. We’ll use a hypothetical example to explain.

John’s business provides accounting services for the film industry. To pick up more clients, he’s paid to appear as an exhibitor at a Film Professionals exposition in a few months. He knows he’ll need something to help his booth draw attention amid all the other exhibitors.

John decides to conduct a pick-to-win prize draw to grab the attention of passersby. The major prize is $50,000. He gets a big barrel for his booth and fills with it balls numbered from one to 100. In the weeks before the exposition, he promotes his prize draw through the organisers’ distribution channels.

John also has posters made. They advertise the $50,000 prize draw and tell attendees to visit his booth to register. On the day, the posters entice people to visit, register, and chat about his services. He gains a bunch of new business prospects.

Near the end of the day, the exposition organisers announce that John will be picking a contestant to draw a ball out of the barrel. If they’re lucky, they could win a $500 consolation prize (and free accounting services for one year) or the $50,000 major prize.

John’s staff film him as he picks a name at random from a bowl. The lucky contestant comes up for their chance to win. The barrel is spun and the contestant draws out a ball. They announce the number and John’s staff member draws opens the corresponding envelop. The lucky contestant has won!

After the celebrations, John follows his insurer’s guidelines to make a claim and have the $50,000 prize issued to the winner. (He also posts the video of the prize draw to his business’s social media channels.)

John’s promotion was a success. He drew significant attention to his business, made several connections with his target market, and gained a pipeline of new prospects to connect with when he goes back to work.

We can arrange many types of prize insurance solutions for many types of promotions.

Our products include:

  • Pick to win cover
  •  High fives cover
  • Level up cover
  • Heads or tails cover
  • Winning envelope cover
  • Spin the wheel cover
  • Match the number cover (digital draw)
  • Pick the key (treasure chest) cover
  • Game show cubes cover
  • Halfway basketball shot cover
  • Hole in one cover.

Not sure which type of cover you need? Contact us for advice on the right solution.

We’re available from Monday to Friday between 8:30 am and 5 pm.

Be sure to familiarise yourself with (and closely follow) all claims conditions in your policy schedule and policy wording. You may be required to have a loss adjustor present or film your promotion. To make a successful claim under hole-in-one or prize insurance, it’s very important to adhere tightly to the rules of your promotion or contest. If you don’t, your insurer may not cover your claim.

We want you to get the best possible outcome, so we will advocate for you throughout the entire claims process. Claims can be stressful, but we strive to make the process straightforward.

If you need to make a change to your insurance policy, contact the Marsh Entertainment team.

It’s important to keep your policy up to date if your business or your circumstances have changed. It’s also wise to tell us if your personal information has changed. 

No. Prize insurance isn’t legally mandated by any Australian state or territory – but that doesn’t mean you shouldn’t consider it.

While there’s no legal requirement to have it, prize indemnity or hole-in-one insurance can provide you with a powerful safety net. By potentially covering the winnings in full, it can help shield you from the financial risk of paying out a sizeable prize to a winning contestant. 

Prize indemnity policies are not able to be renewed.

If we previously arranged a tailored solution for you, your Marsh Entertainment broker can help to arrange insurance for your next promotion – assessing your risks and pricing quotes from multiple insurers.

Other insurance to consider

Product and services

Business interruption

A storm, cyber attack or machinery breakdown can grind your business to a halt. Arrange business interruption cover to keep things moving. 

Product and services

Commercial property insurance

Your property is your responsibility – but mishaps don’t have to cost you. Let us help protect your assets with personalised cover.

Product and services

Cybersecurity insurance

Cyber attacks are becoming increasingly common. Help protect your small business with cyber insurance solutions arranged by Marsh.

LCPA 24/412

Marsh Advantage Insurance Pty Ltd (ABN 31 081 358 303, AFSL 238369) (“MAI”) arranges the general insurance (i.e. not the Discretionary Trust Arrangement) and is not the insurer.

This page contains general information and does not take into account your individual objectives, financial situation or needs. For full details of the terms, conditions and limitations of the covers, refer to the specific policy wordings and/or Product Disclosure Statements available from MAI on request. MAI makes no representation or warranty concerning the application of policy wordings or the financial condition or solvency of insurers or re-insurers. Marsh makes no assurances regarding the availability, cost, or terms of insurance coverage. Any statements concerning actuarial, tax, accounting, or legal matters are based solely on our experience as insurance brokers and risk consultants and are not to be relied upon as actuarial, accounting, tax, or legal advice, for which you should consult your own professional advisors.

The Discretionary Trust Arrangement is issued by the Trustee, JLT Group Services Pty Ltd (ABN 26 004 485 214, AFSL 417964) (“JGS”). Any advice or dealing in relation to the Discretionary Trust Arrangement is provided by JLT Risk Solutions Pty Ltd (ABN 69 009 098 864, AFSL 226 827) (“JLT”). JGS and JLT are businesses of Marsh McLennan. The cover provided by the Discretionary Trust Arrangement is subject to the Trustee’s discretion and/or the relevant policy terms, conditions and exclusions.