These days you can get insurance for almost
everything. The most common types of insurance you’ll find includes home, car,
travel, life, medical and dental, and even pets. However, many gamblers have
often questioned whether there is any available insurance on gambling losses.
Is there? Let’s find out!
Does Insurance Work?
Insurance is a contract that provides
protection to businesses or individuals for losses on their belongings or
assets. Insurance can also be used to cover death, illnesses or diseases.
Insurance companies charge customers a small sum each month and pool the money
together to help an individual when needed such as when something is stolen or
damaged, a person or pet prematurely dies or falls ill, a person suffers an
accident while travelling and more.
However, there have been many cases of strange
insurance too. For example, many celebrities or athletes insure parts of their
body, like Gene Simmons who insured his tongue or Mariah Carey whose legs were
insured by Gillette. American company Wedsure offers wedding insurance which
covers wedding cancellations and liability, including damage to a wedding
There Gambling Insurance?
Many gamers have wondered whether there is any
type of insurance that covers gambling losses in case they don’t generate a payout
from their casino activities. Generally, there isn’t insurance for
gambling but some betting sites do offer a cashback promotion which allows
players to claim back a small percentage of their losses as a bonus. However,
this is usually only available at online sportsbooks and can be quite hard to
One of the reasons there is no insurance for
gambling losses is because there’s a highly likelihood of loss since gambling
always involves a game of chance. Gamers always face a high likelihood of loss
when gambling and insurance companies will find it hard to continually cover
this over a long period of time.
While many people may see gambling insurance
as a way to control their gambling habit, it actually cannot do this. In
theory, gambling insurance would only pay back losses made on games, having no
impact on how often someone will gamble. In fact, having losses paid back may
actually increase a gambler’s habit if insurance was available. This could lead
someone to form an addiction which can quickly spiral out of control.
Insurance that covers gamblers can also be
problematic when it comes to people who suffer from an addiction. Similarly to
the above, insurance companies will struggle to cover the cost of repeat
losses, particularly if a player overspends and lands themselves in debt which
can happen although is often a worst-case scenario.
However, Aviva last year launched its Mental
Health Pathways Plus program, an option large companies can take up to cover
the costs of employees who require treatment for internet addictions such as
gambling and pornography. Although these policies do not cover the losses made
while gambling, it does pay for the cost of treatment at a clinic.
Although there are insurance policies for many
strange and unusual things, it can be difficult for insurance companies to
cover losses made via gambling. We’ve highlighted the reasons above and hope
it’s clear as to why this policy may never be introduced. Right now, it’s far
too risky for insurance companies to cover but Aviva’s recent policy, which
covers addicts, may just be a step in the right direction.