Prize indemnity and hole-in-one Insurance

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:

• Australian Capital Territory
• New South Wales 
• Northern Territory
• Queensland
• South Australia
• Tasmania 
• Victoria
• Western Australia

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.