Prize indemnity can be defined as an indemnification insurance for a promotion in which participants are offered the chance to win a prize. Instead of keeping cash reserves to cover a large prize, the promoter pays a premium to an insurance company, which then reimburses the insured should a prize be given away.
Prizes to be won can be anything from luxury cars, art pieces, vacation getaways or cash prizes.
This is an exciting way to advertise your company. It can even be used internally to uplift the company morale or increase sales. Any company can use this to promote their company by custom making their own competitions
The competitions that can be insured are those that have statistical odds attached to them. So... what are the chances that someone could win the prize?
Some examples that can be covered include:
- Incentive Bonus
- Performance Bonus
- Winning by chance
- Pool Trick
- SMS and win
- Game shows
- Kick the goal post