Prize Indemnity Insurance - Other Prize Indemnity Insurance

Other Prize Indemnity Insurance

In addition to hole-in-one insurance for golf events, prize indemnity insurance companies typically offer coverages for other types of contests as well. For example, contest coverage can frequently be purchased for contests such as half-court shots in basketball, field-goal kicks in football, home runs in baseball, blue-line goals in hockey and even retail & casino-based promotions as well.

For example, in the 2005 Super Bowl, prizes were set to be awarded for several events, including a return of the opening kickoff for a touchdown, a safety, and a fourth-quarter field goal of 50 yards or more. Prize indemnity insurance was purchased to cover all these events. However, none of the events occurred in the game.

Most television game shows pay for prize indemnity insurance for million-dollar prizes. In 2008, such an insurance provider demanded RTL Group and CBS toughen million dollar win provisions after The Price Is Right $1,000,000 Spectacular produced three millionaires in the six episodes produced that season under the new rules imposed for the season that changed the format from the bonus spin on the Showcase Showdown wheel to one random pricing game with tougher win conditions and the results of the show-ending Showcase round. The company demanded that the threshold for the $1,000,000 prize be reduced to a winning bid within $500 of the actual retail price of the final showcase (it had previously been set at $1,000 for those six episodes; the daytime double showcase standard is $250 for the typically $22,000 showcases; primetime showcases ranged from $40,000 to $100,000) and the removal of one of the million-dollar pricing games in which a contestant had won the top prize. Furthermore, after the four episodes aired with the new rules, RTL and CBS have not produced any further episodes in the five years since, possibly due to the insurance concerns (the specials had run every year from 2002 up until that point; it should be noted the shows were originally produces as part of filler after the Writers Guild of America went on strike).