Lloyd's agency to offer prize indemnity, over-redemption coverage

Lloyd’s of London managing general agent CFC Underwriting Ltd. has launched prize indemnity and over-redemption policies.

Both policies offer limits of up to $30 million backed by Lloyd’s of London capacity, the London-based MGA announced Monday in a statement.

The prize indemnity policy covers conditional rebates, lotteries and sports skill competitions, while the over-redemption policy covers on-pack and in-store promotions, coupons and loyalty schemes, according to the statement.

“Prize competitions and coupons or free product offers have become an increasingly valuable marketing tool for a huge range of companies, both on and offline,” Matt Helm, CFC’s contingency practice leader, said in the statement. “As a result, the contingency market is rapidly growing, and there is real potential for brokers to develop profitable business in this arena.”