How to Implement Prize Insurance at your next Fundraising Event

At Eventsured, we handle event liability, event cancellation, and even rain insurance, but for this article, we’ll introduce you to our sister company, Interactive Promotions Group. Where we handle all things event insurance, Interactive Promotions Group handles all things contest insurance.

What is contest insurance?

Contest insurance (or prize indemnity) is an insurance policy that covers the cost of a prize for a contest. The customer pays one flat fee to run a contest with a much larger prize (i.e., a new car, all-inclusive vacation, or cash). If someone wins the contest, the insurance provider pays out the cost of the prize. If you have ever seen a golf tournament with a hole-in-one prize, or a basketball game with a half-court shot contest, these are perfect examples of contest insurance. The tournament is not paying for that new car. They only needed to pay for the contest itself.

Is it considered gambling?

The short answer is “No”. The longer answer is, “No, as long as none of your contestants are paying to play .” However, that doesn’t mean you can’t use these contests to help raise money.

What can contests add to an event?

A contest can contribute to a charity event in a couple different ways. Firstly, It can be an added gimmick to get people to attend or a thank you to those who have already chosen to.

Secondly, It can be monetized without being considered gambling. While you can not require people to play to pay, you can ask for a recommended donation. If you have ever seen sweepstakes at the grocery store that say, “No purchase necessary,” this is the same idea. Nine out of ten people are willing to pay, but if someone does not want to, you must include them anyway.

What Contests Work Best for Fundraisers?

Typically, for fundraisers and other events, you want as many people to participate as possible. For that reason, you want probability-based contests rather than skill-based contests. Interactive Promotions Group recommends the following:

Dice Roll: Roll six dice, and if they land W-I-N-N-E-R face up, you’ve won!

Crack the Vault: Guess the five-digit code. If the vault opens, you’re a winner!

Scratch Cards: Scratch off six boxes; if all six match, you’ve won!

Indoor Putt: Sink three out of three putts from twenty-five feet to win!

Paper Airplane Toss: Make your paper airplane, Toss it forty feet, and if it lands in the designated hole, you’ve won!

If any of these contests have caught your eye, or you have an idea of your own, call Interactive Promotions Group at 888-882-5140.