Contractual Bonus

Firm Presentation

In Cooperation with

Contractual Bonus Insurance

With sports sponsorship spending running into billions of dollars, it is no wonder that both the Sponsors and Owners of professional teams and individuals are constantly looking for better results which, in turn, allows those teams or individuals to seek better contract payment terms.

Contracts between the team or individual and the team owner or sponsor are often bonus-related, making them difficult to budget with any great accuracy. The sums of money involved across all types of sport can be daunting, even for the largest of sponsors or clubs - bonuses of millions of dollars per player are common at the highest level.

What is contractual bonus insurance?

Contractual bonus insurance can be arranged to cover bonuses paid to a professional team or individual should the individual or team meet pre-determined win or placing objectives. Cover enables a sponsor or owner to set the budget for the payment of bonuses, rather than having a large potential liability on the balance sheet. By setting the costs of a bonus, higher bonuses can be offered along with more attractive contracts, thus potentially attracting better class athletes.

The insurance is tailored to the bonus contract and can be arranged to cover different levels of success. The most common placements are for winning a competition, but cover can also include:

Being promoted to a higher league
Qualification for an international competition
Winning or being placed in Major competitions

As this is a policy of indemnity, the insured person or company must be contractually liable to pay the bonuses.

Related insurance covers available

Spectators Prize Indemnity

Sponsors of various sports events now look to audience participation to increase brand awareness. It is becoming commonplace for halftime intervals to be used to maintain the crowd's interest by running various promotions. Similarly, events and companies may wish to attract people to attend through a competition with a prestigious prize being offered, increasing awareness of an event and its sponsor, especially when the prize is won.

Cover can be arranged to indemnify the organiser or sponsor for their cost of awarding a prize during such a promotion. The number and types of competitions that can be covered are limited only by one's imagination but examples are:

A spectator kicking a football through a hole in a board covering the goal or penalty shoot-outs against another spectator
100 yard Throw – hit a single cricket stump to win a car
Kick for a Million – A participant scoring a progressive sequence of three conversions from different positions on a Rugby pitch
Scoring a basket from the halfway line on a basketball court

See Prize Indemnity for more information.