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Contests' popularity increases demand for prize indemnity cover; Odds are, though, not all promotions can find insurance.

Article Excerpt
Byline: GLORIA GONZALEZ

Watching this year's Super Bowl was nerve wracking for Lowery Robinson, president and chief executive officer of Duluth, Ga.-based Marketing Etc., a managing general agent that develops sports promotions and facilitates insurance coverage for them.

He spent the entire game rooting against the occurrence of several events-a return of the opening kickoff for a touchdown, a safety and a fourth-quarter field goal of 50 yards or more-because any of those events would have won a substantial prize paid for by one of his insurers.

"We had so many promotions during that game, it was really frightening to watch,'' he said.

Mr. Robinson ended up having a better game than did the Philadelphia Eagles, though, because none of those events occurred, which meant his underwriters did not have to pay out in any of the prize competitions they insured. The Eagles lost to the New England Patriots by a score of 24-21.

The demand for prize indemnity insurance has increased in recent years due to the growing popularity of sales promotions and contests. Consumer product companies have learned that they can often gain more exposure...