What is Contest Indemnification?

As I’ve mentioned in my recent blogs, one of the parts of the winner selection process involves winner indemnification. You might be asking, “What is contest indemnification?” It can take many forms, but can be found in different parts of promotions. Here are the different examples of indemnification that can arise in sweepstakes:

What is Contest Indemnification for Winners?

Part of the winner selection process involves selecting the winner from all the received and valid entries. The winner verification process involves verifying eligibility, a skill testing question and a winner indemnification form. This is a legal document that releases any liability from the contest sponsor and contest administrator. We at RAVEN5 also include a publicity clause that allows use of the winner’s photo and name so that we can announce who won the contest. This is meant to prevent potential issues in the future. Depending on the type of contest, the contest indemnification for winners can be quite extensive.

What is Contest Indemnification for Entrants?

Included in most contest rules is a “indemnification by entrant” section. This often echoes the wording of the winner indemnification form, but binds all entrants of the contest. It’s good to include when preparing the rules for your contest.

What is Prize Indemnification Insurance?

This is often discussed in terms of contests because prize indemnification insurance covers certain types of contests. Often prize indemnification insurance is called “hole-in-one insurance” as it’s used to insure certain contests with high-value prizes. For example, if a golf course is holding a hole-in-one contest with a $100,000 prize, the golf club may insure the prize. This allows the golf course to pay a sponsor to insure the prize, and if the prize was won, the sponsor would pay out the prize.

Are you thinking of running a contest or sweepstakes? Check out my sweepstakes checklist which has tips for both contests and sweepstakes. Want to offer a huge prize? Consider prize indemnification! We at RAVEN5 are experts at contests, sweepstakes and promotion. Contact us if you want your next contest to be a success.

Jesse Bickerton, RAVEN5, July 2018

Sources

https://en.wikipedia.org/wiki/Prize_indemnity_insurance

http://www.roughnotes.com/rnmagazine/1997/february97/02p28.htm

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