Marsh’s London office announced that it has launched a new errors and omissions (E&O) insurance product for the suppliers of lottery and gaming (gambling) organizations. The new product, created by Marsh’s Financial and Professional (FINPRO) Practice in London, is available to clients globally and provides in excess of $35 million in cover against specific lottery and gaming E&O risks.
Marsh noted that the lottery and gaming E&O policy, “underwritten by certain underwriters at Lloyd’s, policy satisfies the unique risk exposures of suppliers to the lottery and gaming industry, which traditionally rely on general E&O cover.”
The policy provides comprehensive coverage for financial exposures arising from the following:
— Contractual obligations signed by the printers or vendors with the first party principals (e.g. state lotteries), such as the cost of additional prizes and abandonment or game cancellation
— The increased costs arising from failure to conform with these contracts
— Printers’ or vendors’ liability following machinery, equipment and computer breakdown or failure that would not be provided for under a normal E&O policy
Marsh said the new “policy can also be adapted to match the specific insurance requirements of lottery organizations, thus avoiding any gaps in cover and providing protection against the potentially catastrophic risks arising from the standard procurement conditions of the principal gaming and lottery operators. For example, in the event that a game pays out more than 100% of its prize pool due to an error, the policy will pay the difference and therefore protect the reputation of the operator and integrity of the game.”
Neil Daly, a Vice President in Marsh’s Specie Practice, commented: “The growth of the lottery and gaming industry globally has shown no sign of slowing as a result of the recession. In the UK, National Lottery sales now total over £5.1 billion [app. $8.5 billion].
“As sales increase, so do the risks facing the sector. The financial exposures are potentially disastrous to a company and any error or omission can have a lasting impact on a company’s reputation. Marsh’s new E&O policy provides lottery and gaming organizations, as well as suppliers to the industry, including specialty printers, with the insurance protection they need to help mitigate these risks and keep their reputations intact.”
Source: Marsh – www.mmc.com or www.marsh.com
Topics New Markets
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