Prize Indemnity Insurance – Prize Insurance – Hole in One
Prize Indemnity Insurance
Allen Financial Insurance Group & The Equestrian Group
Prize Insurance – Hole In One
Specialty Promotion Insurance Products
Everyone enjoys watching a spectacular shot. It could be a hole in one in golf, a half-court shot in basketball or a blue-line goal in hockey, or a home run derby. But if you are the event organizer or promoter, you may find yourself shilling out some cash for a prize after these awe-inspiring moments. When you have prize insurance, you don’t have to feel that way. You can celebrate right along with the winner. Hole in one insurance pays the prize money to the winner, and as the insured you only pay a fraction of the payout for your insurance premium.
How does Prize Indemnity Insurance – Prize Insurance – Hole in One Insurance Work?
Every good promoter knows that if you want to get people excited about an event, you have to create some buzz. Many times, the best way to ramp up the energy level of the crowd is to offer a prize, such as a bundle of cash, that participants have an opportunity to win during the event.
Hole in one insurance began growing in popularity in the 1980s as golf tournaments started awarding cash or other prizes to contestants who made a hole in one during the tournament. Since then, this marketing idea has expanded to other sports. Basketball events added half-court shot contests, hockey events sponsored blue-line goal contests and golf event coordinators added long putt contests.
What you may not know is most sponsors or promoters of these events do not pay these winnings out of money set aside for the contest. Instead they purchase prize indemnity insurance or putting contest insurance to cover the possibility that they will need to award these prizes.
Incentive provisions are common in sponsorship or endorsement contracts with professional athletes; if the athlete achieves certain goals in his/her sport, the sponsor/endorser is contractually obligated to pay bonuses on a specified basis. Since these bonuses are large additional sums, the potential contractual liabilities are significant. The Incentive Bonus policy offers a guaranteed cost (the premium) and assumes the possible pay-out of the contract, reimbursing the insured for the sums they are obligated to pay.
Games of chance where a prize can be awarded to a winner are commonly insured on a Prize Indemnity form. The policy “pays on behalf of” the Named Insured if an eligible individual or contestant wins. It can cover basketball shots, holes-in-one, random number games, or any other advertising promotion. The policy limits can range from $2,500 to well over $1 million, or the cost to purchase an annuity to pay out the prize over time. For example, car dealers have successfully promoted sales during winter months with the promise that if it snows more than a certain number of inches, the price of every car sold will be completely refunded. Note: Prize Indemnity is NOT intended for promotions with a guaranteed winner.
Hole In One
Coverage rating is based upon the number of players, the value of the prize awarded for a hole-in-one, and the yardage of the hole(s) on which it is offered.
Coupon Over – Redemption
Promotion or product managers have percentage estimates of what rebate or refund promotions will actually return. If the promotion is wildly successful, and the actual redemption level exceeds the budget, Coupon Over-Redemption insurance provides a limit of liability selected by the insured, above an agreed redemption estimate. This gives the brand or product manager a fixed cost (premium) for the promotion budget and helps protect them from unexpected over-redemptions.
Our over-redemption coverage ensures that you’re taken care of if you get too many redemptions for your offer. With our proprietary system, you only pay for redemptions up to a certain point.
These programs include: In-Pack/On-Pack Contests, Instant Win games, Coupons, “Try Me Free” offers, money-back guarantees, and taste challenges.