PACE Team: Personal Accident, Contingency and Event Insurance
Providing Specialist Insurance for Unique Situations and Risks
The PACE team is based in Marsh’s UK headquarters in London and provides insurance advisory and placement capability to help clients across the world manage the risks in two specialist areas:
- Sports and high-risk personal accident for major football and other sporting teams, foreign correspondents, private security firms, and major voluntary organisations, and specialty coverage outside of Marsh’s or Mercer’s personal accident and travel/accident and health facilities.
- Contingency and event cancellation insurance covering situations such as cancellation of major sporting events, non-appearance, prize indemnity, and/or contract bonuses.
Our contingency and event cancellation insurance solutions include:
This insurance is designed to protect the gross revenue or costs and expenses associated with the organisation of an event. Cover is provided if the event is cancelled, abandoned, curtailed, postponed or relocated due to a cause beyond the control of the insured. Cover is tailored in accordance with an event’s specific risk profile, and can include a variety of needs, including protection from natural catastrophes, adverse weather, terrorism, etc.
Anyone with a financial interest in the successful completion of the event can purchase cover, including but not limited to event or venue owners, promoters, caterers, merchandisers, sponsors, and broadcasters.
Common in sponsorship or endorsement contracts with professional athletes, incentive bonuses are offered by the sponsor/endorser based on the athlete’s achievements. These bonuses can constitute large additional sums; therefore, the potential contractual liabilities are significant. The incentive bonus policy offers a guaranteed cost (the premium) and assumes the possible pay-out of the contract, reimbursing the insured for the sums they are obligated to pay.
Events that rely on the appearance of a single individual or group are subject to cancellation and lost expenses and/or revenue if that person or persons are unable to appear for reasons beyond their control. Non-appearance policies provide coverage for "all risk" of cancellation or postponement, including medical causes (subject to pre-approved medical report).
Over-redemption insurance can be used to limit the financial exposure associated with a sales promotion, such as money off coupons, two-for-one and buy-one-get-one-free (BOGOF) offers. This allows clients to fix their marketing budget and hedge any exposure if the promotion over-redeems beyond the level originally anticipated by accepting any redemptions that occur above a pre-determined trigger point.
Games of chance where a prize can be awarded to a winner are commonly insured through prize indemnity cover. The policy "pays on behalf of" the named insured if an eligible individual or contestant wins. It can cover basketball shots, holes-in-one, random number games, or any other advertising promotion. The policy limits can range from $2,500 to well in excess of US$1 million, or the cost to purchase an annuity to pay out the prize over time. However, prize indemnity is not intended for promotions with a guaranteed winner.