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Consumer Alert

Sweepstakes winners are NOT required to pay any money before receiving their prize. If you have been called or have been mailed notification that you have won a sweepstakes or other type of promotion and need to send money before receiving your prize you are most likely being scammed.

Over the past few years, NSC has advised consumers not to fall prey to these frauds. Unfortunately, these individuals are now using our name and logo in order to appear legitimate.  These sweepstakes are NOT legitimate and are in no way associated with NSC.

If you have been notified that you have won a sweepstakes or other type of promotion and are asked for money please contact your State Attorney General, or you can file a complaint with the Federal Trade Commission.

For more information, please click here or call 800-894-5461.


Why promotion companies have E & O Insurance

May 16, 2017
Promotion Tips


Happy Tuesday!  Today we’re talking about a super important piece of the puzzle when it comes to hiring a contest or sweepstakes administrator.  E & O insurance.   If you’re researching promotion companies, you’ll want to ensure they have it.


Errors and omissions or (E & O) covers the promotion company for the services provided, should a legal issue arise.  For doctors and dentists, you might refer to it as "Malpractice Insurance". And for lawyers, accountants or even sweepstakes administrators you may call it "Professional Liability".  Either way you cut it, E & O covers the insured company for errors (or omissions) that they have made.


A common misconception among clients is that E & O covers the client or sponsor for their mistakes.  For example, if a sponsor changes the entry mechanism after the promotion launches without discussing with administrator and a legal issue arises.

Unfortunately, this is just not the case with a standard E & O policy.  This is one of the number one reasons brands hire promotion companies to perform the actual administrative tasks too (like selecting and notifying winners and fulfilling prizes).  This way, if something goes wrong based upon the service being provided, the brand is likely off the hook.


Coverage varies based upon the individual policy.  But, as a general rules of thumb, E & O policies typically do not cover fraudulent or illegal activity or intentional acts of negligence.  They also don’t cover physical harm or property damage (which is typically covered off under a General Liability policy).

As with most things, E & O isn't black and white.  There are a variety of coverages, policy limits, options to add additional insureds, and more.

We’re happy to discuss our specific policy with you at any time!  Feel free to contact us and we’ll walk you through it.  In the meantime, here’s a list of our services covered under our E & O policy.

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