Loss of Revenue
This provides a means by which the insured can cover themselves in the event that there is failure to achieve a specific target.
The principles covered by this insurance are applicable across a variety of sporting activities. The loss could be through bonus payments, loss of television revenue, loss of gate receipts.
They will therefore endeavour to indemnify themselves in the event of underachievement, covering any revenues they would have been entitled to had they succeeded.
Prize Indemnity
Prize indemnity insurance aims to indemnify the insured against any payments they are required to make as a result of contractual obligations.
Usually, the insured under Prize Indemnity is a club or, alternatively, sponsor of a team or individual player.
In order to try and achieve maximum success the club or sponsor will offer a range of incentives or prizes, for example bonus payments, which are performance linked. Should the club or athlete achieve success the insured will then become liable for payment of these contractual obligations. A prize indemnity policy would then cover these obligations.
