Ever wondered how companies are able to conduct contests with prizes like cars, luxury vacations, and huge sums of cash?
The money for such lavish giveaways doesn’t always come out of their marketing budget. Sometimes, they turn to insurance. Prize Indemnity Insurance to be exact.
You can buy Prize indemnity insurance for promotional events that offer expensive prizes to carefully defined winners.
- This transfers the risk of payout from the organizer to the insurer
- It guarantees that the winners will receive their reward.
The policy coverage limit here is the actual value of the prizes on offer. The premium depends on this value, and the odds of someone winning the contest.
Prize Indemnity Insurance is commonly used for lottery jackpots, casino games, and hole-in-one golf competitions.
Through this, companies can entice new customers with high-value rewards without actually having to pay for them!
Interested in learning more about Prize Indemnity Insurance? Read about why Taco Bell bought it for the crash of a Russian spacecraft