blog - how and when to use promotion insuranceSo you have developed a great, creative idea to engage your consumers face-to-face. You have everything lined up from brand ambassadorstour managers, branded premiums, and a great location. However, this particular event includes a sweepstakes or contest with a large grand prize.

For example, Pro Motion activated the Busch Beer “Catch Big Jake” promotion in which 40 fish were tagged in 40 bodies of water across the country.  Anglers were encouraged to try to catch one of the tagged fish to win a prize.  One of the tagged fish, called “Big Jake,” if caught would yield a grand prize of $1 million.  The remaining 39 fish would award prizes of $1,000 each. So, if an angler caught this elusive “Big Jake” who is responsible for paying up the ultimate prize?

How does it work? When an event is held with such a large grand prize on the line very few companies orexperiential marketing agencies can afford to be caught on the hook for such a large payout.   Instead, an insurance company will pay the lucky winner. By securing promotional insurance for your experiential marketing contest or sweepstakes you pay the insurance company up front a fraction of the total grand prize amount.
How to choose an insurance provider: you need to find an insurance company that best fits your program and budgetary needs.  It is important to evaluate several different criteria when seeking out an insurance provider.

  1. Be specific: There are many different insurance companies out there, search for ones that offer specific insurance for exactly the type of promotion you are executing. The more specific, the more experience they have with insuring your type of event.
  2. Details: When talking to an agent, make sure you communicate all of the details about the event as clearly as possible. Every detail can affect the odds of winning and ultimately change the ending quote. For example: if you are doing a golf shootout; how many contestants will participate? Are they male or female? How are the participants chosen?  Will it take place on a driving range or golf course?  How many potential winners will you have?
  3. Credibility: Make sure the provider is underwritten by a credible insurance company. Any quote requested should go through the underwriters before being considered. Also, check out the provider’s list of clients? How long have they been in business? Ask for references?
  4. Request Options: How will the prize be paid?  Is it a one-time cash payout?  Will the winner receive monthly installments over the course of several years?  The type of payout will make a large impact on the price of the insurance.   For example, 40 year annuity is much less expensive than a cash payout.

Use these tips to help find a credible and trustworthy promotional insurance company for your next promotional event.  You can get coverage for events such as sweepstakes, putting contests, hole-in-one contests, basketball or golf shootouts, pro angler contests, prediction contests, field goal kicks, and many more.

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