Prize indemnity insurance
Prize indemnity insurance lets a brand promise a car, a million dirhams or a jackpot vault and pay a single fixed premium instead of reserving for the worst case. An underwriter carries the payout risk; you carry a known line on the marketing budget.
How it works
The brand names the prize. A regulated underwriter carries the risk of paying it out. The brand pays a fixed premium calculated from the probability of a win — known before launch, and unchanged if the campaign over-performs.
For the CFO
Cost is fixed before launch and does not move with participation. Capped downside, uncapped upside — a viral moment multiplies media value without touching the premium.
For the CMO
A genuinely large prize earns attention a discount cannot buy. The prize does the media work; the insurance is what makes the prize possible.
For legal & compliance
Cover sits behind documented terms, sealed records and independently verifiable outcomes — defensible to regulators, auditors and press.
What prize indemnity insurance covers
If the odds can be modelled and the outcome can be verified, the prize can usually be insured. These are the mechanics we underwrite most often.
Six- and seven-figure headline prizes — including AED 1,000,000 vault jackpots — funded from cover rather than reserves.
Golf days, sports activations and skill challenges where a single successful attempt triggers a high-value prize.
E-VAULT™ and combination games where the winning code is sealed before launch and attempts are logged and auditable.
Scorelines, tournament results and index closings settled against an independently published official result.
Refund-if-it-rains and temperature-triggered promotions settled on official meteorological measurements.
Coupon, cashback and gift-with-purchase offers where uptake above forecast is the real financial exposure.
Not sure which mechanic fits your objective? Browse the mechanics library or see the E-VAULT™ jackpot mechanic.
How we place cover
Sales lift, footfall, data capture or loyalty. The objective sets the prize scale and the participation volume the mechanic has to deliver.
We model the mechanic so the odds are tight enough to keep the premium affordable and loose enough to keep participation meaningful and credible.
A regulated underwriter prices the risk and issues cover against the agreed mechanic, odds and prize value. Your exposure is fixed on day one.
Sealed records, filmed handovers and external reference sources make the outcome independently checkable. Winners are paid from cover, not from your P&L.
Frequently asked
The questions marketing, finance and legal teams ask before their first insured promotion.
Prize indemnity insurance is a contingency cover that pays out a promotional prize if a participant wins it. The brand names the prize; a regulated underwriter carries the payout risk; the brand pays a fixed premium priced on the probability of a win. An uncapped contingent liability becomes a known line on the marketing budget.
The underwriter models the expected value of the payout — probability of a win multiplied by the prize value — and adds a margin. A one-in-fifty-thousand hole-in-one on a par three costs a small fraction of the car being offered. The mechanic drives the odds, and the odds drive the premium.
Cash jackpots, vehicles, property, travel, hole-in-one and feats of skill, crack-the-code vault prizes, prediction and sports outcomes, weather-triggered refunds, and over-redemption on coupon or cashback offers. Cover is written against a defined mechanic with agreed, verifiable odds.
Broadly, yes. Prize indemnity insurance, promotional risk cover and contingency insurance describe the same product with different framings. In each case a regulated insurer stands behind the prize and the outcome is independently verifiable.
Consider indemnity at the point where a single win would materially damage the P&L, or where the prize is large enough to earn media in its own right — a car, a house, a life-changing cash sum, a jackpot vault. Above that line, insuring the prize is almost always cheaper than reserving for it.
Yes. 5th Consulting designs and underwrites insured promotions from Dubai across the UAE and wider MENA region, and internationally, with campaign frameworks adapted to local promotional regulation.
Recommended next step
Where most teams go next after understanding how the cover works.
Share the prize, the mechanic and the expected participation — we come back with an indicative premium.
Start a conversation Deep divePricing logic, odds design and when to insure rather than self-fund.
Read the guide MechanicThe crack-the-code vault mechanic that most commonly sits behind an insured jackpot.
See the mechanic ProofHow sealed records and external reference sources make an insured outcome checkable.
See the controls