Promotional prize insurance is insurance for a promotion where
the participants are offered the chance to win prizes - in the form of games, contests and competitions. Prize insurance is also known as prize coverage, prize indemnity, contest insurance, game insurance and promotional insurance.
According to numerous research studies, consumers continue to prefer 'cash' as the number one prize incentive, followed by travel, home entertainment and cars.
Cash prize incentives thus massively increase the attractiveness of consumer promotions and offer a great competitive advantage.
To be able to offer enticing high value prizes up to $1 Million organisations purchase prize indemnity insurance, to protect themselves from having to pay in full for the prize from their own funds, in the event of a winner.
Instead of keeping cash reserves to cover large prize payouts, the promoter (client) pays a fixed fee insurance premium and Sports & Events Promotions puts the contract in place for your promotional prize coverage.
The cost of the insurance premium is only a fraction of the prize value.
Since fixed fee promotion insurance amounts to a small percentage of the actual prize value, it offers a great return on your marketing investment!
Promotion Insurance in Action
The development of prize promotions is very flexible. The design will be in line with your business objectives, communication channel preferences, target audience, duration and style.
In most cases, a contestant is randomly selected from all participants, at the end of the promotion, for a chance to win the prize.
At this point, the originally selected promotion mechanics govern the contest execution and probability of a winner. For example, the prize draw contestant could be presented with 200 numbered envelopes, of which one envelope contains the grand cash prize (e.g. $100,000).
The remaining 199 envelopes contain a consolation prize, such as a small cash amount, a free product or service, a gift card, or similar supplied at the promoter's discretion.
So, in the event the prize winner chooses the envelope containing the grand prize, Sports & Events Promotions provides the payout, not you
Promotional insurance enables you to maximise your return on investment and offer customers a more compelling reason to consider your product, service or venue.
For a total promotion prize cost of $10,000, you can offer a Chance to WIN $100,000 and consolation prizes!
When there is a winner, we provide you with the cash, you present
the cheque and take in the glory. What a great PR story!