For just about every large-scale contest, there's an individual or company behind the scenes making sure that it runs smoothly. After all, there's always a multitude of factors that must be addressed, such as entry processing, any promises made to contestants and adhering to local laws and regulations, among many other things. A good contest manager handles it all. That being said, sometimes things don't end up going as expected. This can result in legal claims that can risk ruining the contest manager. So if you offer contest management services, you're going to want to protect yourself and/or your company with contest manager professional liability insurance. You can read more on specific policy options at Professional Liability Insurance for Contest Managers. Can a Contest Manager be sued?

The fact of the matter is that it's actually quite simple to file suit against a contest manager (or a company that provides this service). People are human, and they make mistakes, and unfortunately glitches in software and technology can also result in mistakes. When it comes to contest management, these mistakes can include anything from errors in the contest rules to promised winnings not being provided and even not adhering to local contest / sweepstakes laws. Those affected by such errors may then choose to file a claim in an attempt to make up for their losses. Whether or not the claim is ultimately successful, the contest manager can suffer significant business setbacks and legal costs. Typical exposures for event organizers include spectator injury, prize disputes, data-handling errors and property damage. What exactly is Professional Liability Insurance?

Also referred to as "Errors and Omissions" or even just "E&O" insurance, professional liability policies are crucial to a wide variety of positions that provide professional services, such as contest managers. When a claim is made against a contest manager regarding an error on their part, coverage from a good liability policy can actually save their business from going under by taking care of their costs associated with that claim. Liability insurance policies do come with coverage limits, so be sure that yours suits your business needs. Some managers combine E&O with broader commercial liability or event liability coverages; a useful comparison can be found on related pages like Risk Managers/Professional Liability (Errors & Omissions) Insurance or Consultants Management Insurance to learn how underwriting factors and exclusions can differ by program. Where to Begin?

The first step is to take stock of your business value and the services you perform. The more contests you handle in a year and the larger their scale, the greater the amount of liability coverage you will most likely need. The number of employees you have may also affect this. Once you have gathered this basic information, it is a good idea to seek out the counsel of an insurance agent with experience in insuring contest managers (or at the very least, nonprofit organizations because the details can be surprisingly similar). Keep in mind that depending on the location of your business and your clientele, you may actually be required by law to have an active liability policy before taking on contracts. Consider related coverages as part of your risk-management plan: participant accident coverage for injured entrants, equipment coverage for damaged or lost staging/AV gear, and commercial auto exposure if you transport prizes or equipment. Underwriting factors insurers commonly review include contest size, past claim history, software/technology controls, employee training, and contractual obligations to sponsors or venues. A simple risk scenario: a software error miscounts entries and a promised prize is not delivered, triggering a claim for alleged damages and duty to defend costs.

Frequently Asked Questions

Do contest managers always need professional liability insurance?

Not always, but it is strongly recommended for most contest managers, especially those running large or frequent contests, or those under contract with sponsors or venues that require proof of coverage.

What kinds of losses does Errors & Omissions insurance typically cover?

E&O generally covers defense costs and settlements arising from alleged negligent acts, errors, or omissions in the services you provide; it usually does not cover intentional wrongdoing or most bodily injury/property damage claims unless combined with other liability policies.

Are there common exclusions I should watch for?

Yes — common exclusions include intentional acts, punitive damages in some jurisdictions, known claims prior to policy inception, and certain cyber or privacy exposures unless specifically endorsed.

Still have questions? Talk to a local insurance expert.