Archive for Prize Indemnification
Fishing contests, tournaments, and tagged fish derbies are as popular with fishing enthusiasts as hole-in-one tournaments are with golfers. Both are offered as prize indemnification programs for the event’s sponsors or for the parties that provide the prizes. Coverage can be customized in an event format based on each individual tournament’s needs and requirements. Prize promotions can fit all categories of tournaments, from children’s fishing rodeos to bass or walleye tournaments to offshore sports fishing events. Tournaments can select from prize categories such as Lake Record Fish, First Place Big Fish, or Second Place Fish. Coverage is available for a variety of top prize amounts.
Hole-in-one coverage is a form of prize indemnification insurance. It is purchased by sponsors of local golf tournaments who provide prizes to any golfer who scores a hole-in-one on a designated hole during the event. Prizes include new cars, riding lawnmowers, clothes, other merchandise, or cash. Insurance is arranged prior to the event and indemnifies the insured only if the hole-in-one is made and the prize awarded. It usually has a warranty to the effect that at least two tournament officials must certify the hole-in-one before it pays the insured’s loss. The warranty also usually requires that the hole must have been played according to the details in the agreement.
Businesses use a variety of methods to attract potential clients to their websites. These can include sporting events, “watch, listen, and win” contests, second chance lotteries, and other promotions. The different Internet promotions can be combined with direct mail or e-mail campaigns. The goal is to increase website return visits; assist in collecting demographic information; and to enroll members. This insurance is similar to “hole-in-one” and other promotional insurance coverages. The value of “payoffs” and costs vary.
Phone Card Promotions
A relatively simple product promotion places prepaid phone cards into the product packaging as a way to increase sales, introduce new products, or draw attention to special events. When the card is used, the product or business’s image and a message appear before the user each time a call is made. At times, the phone cards become collector items and the promotional image lasts even longer. This coverage insures over-indemnification of the phone cards.
Prize Indemnification Insurance
Fund-raisers and prize giveaways at sporting events attract people to “chase the pot of gold at the end of the rainbow.” The sponsors need prize indemnification insurance for the winners of that â€œ$1 million prize.â€ The pricing is based on the odds of winning the prize as the insurance company calculates them. Common examples of contests include hole-in-one, tagged fish, and record fish. Using the example of a charity-sponsored fishing event that uses a tagged fish, the underwriter considers the type of fish, the number of participants, where the event will be held, and the number of days the event will run. In prize insurance for sporting events, the important factor is the degree of difficulty involved. Large prizes are usually insured on the basis of an annuity.
Sales Redemption Campaigns
Sales redemption campaigns are conducted as part of marketing and sales promotion activities. Such campaigns may provide collect-and-win games, collect proofs of purchase and receive a free gift, money-off coupons or other similar-type offers. Insurance coverage is available to cover the loss sustained when the projected redemption goal is exceeded resulting in more payments being made than anticipated. Insurance coverage is also available to cover the loss sustained when fewer buyers than projected take advantage of an offer resulting in an overabundance of these purchased giveaways.