Prize Indemnity Insurance

Running a contest can be a fantastic marketing opportunity for you and your business.  With Prize Indemnity Insurance, you can give your customers a chance to WIN without costing your business a large amount of money.  By purchasing this type of insurance policy, you are effectively transferring the risk to the Insurance Company.  Your business can offer special contests or promotions to your customers without worrying about breaking the bank!

 

Here’s how it works:

  • Create a contest that will engage your customers
  • Determine the prize amount that you would like to offer to the winner of your contest
  • Complete a simple application form through us, your Broker
  • Pay a small premium for your insurance policy (premiums amounts vary depending on the type of policy and corresponding prize amount)
  • In the event you have a customer who WINS, the Insurer will pay out the agreed prize amount!

 

There are many different types of Prize Indemnity Insurance policies available, including the following:

  • Hole-in-One:
    • This type of policy allows you and your business to sponsor a hole for a golf tournament. There are specific requirements, including the number of golfers and yardage of the hole.  If the golfer gets a hole-in-one on the sponsored hole, they win the corresponding prize amount!
  • Weather Promotions:
    • This type of policy is typically used for sales of large items, such as vehicles. The customers’ purchase is paid or they are offered a rebate if they guess correctly for a certain amount of snow or rain fall on a specified date.
  • Crack the Code:
    • This type of policy allows you and your business to create a code for a corresponding prize. If the customer guesses the correct code they win the prize.
  • Envelope or Number Draw:
    • This type of policy involves a contest where the customer tries to pick the winning envelope or number to win the prize.
  • Sports Contests:
    • These types of policies include hockey games, curling, basketball or football where the participant needs to complete a specific task, such as shooting a puck from the centre line, to win the corresponding prize amount.

 

If you and your business are considering running a contest to engage your customers, please give us a call today to find out how we can assist you with a Prize Indemnity Insurance policy!  And as always, if you have any questions regarding this information or if we can assist you in any way, please do not hesitate to contact us!

 

Thank you,

The Costen & Associates Team