Contest Insurance Articles

Contest Insurance – Giveaway Huge Prizes for Pennies on the Dollar

Holding a sort of contest or raffle draw with huge prizes at stake is definitely going to boost your company’s return of investment.  However, what if you don’t have that kind of money lying around in your bank account? This is where contest insurance can help you. Large companies use this type of marketing strategy on a regular basis. With this type of promotional risk insurance coverage, even the little guys in the business playing field will be able to afford to put millions in the pot.

How many times have you feverishly participated in raffle draws in supermarkets or restaurants with eye-popping and jaw-dropping prizes at stake? How many times have you imagined winning the grand prize that will drastically change your life? Sometimes you wonder how these establishments are able to afford such life-changing prizes and elicit a lot of buzz in their marketing and promotion.  Well, as you will soon find out, contest insurance is the solution for such a successful campaign.

How does it work?

Say for instance you want to hold a golf tournament with a million dollar prize for a Hole-in-One shot.  If someone wins, you are responsible to pay the 1M to the winner.  However, you have a choice not to.  This is where you have to buy a contest insurance that will protect your company on promotional risks.  This means you will buy an insurance premium against somebody winning your contest.  Your insurance premium will be a percentage of the 1M prize.  Basically, the premium you pay is a fraction of the total prize value based on odds to win, the number of chances to win and the value of the prize. If somebody wins, the insurance company will pay the prize.

How will contest insurance benefit your business?

It’s already a fact that most people are a sucker for great prizes that can change their lives.  If you include a sort of contest or competition as part of your marketing strategy, you can expect to:

-Elicit mass attention and foot traffic to retail outlets

-Boost attendance to any marketing events such as trade shows or fundraising

-Increase brand awareness and popularity

-Encourage customer retention

-Generate sales leads and increase of revenue

These are just a few of the several things you can achieve to skyrocket your business.  With contest insurance, you can get the same effective promotional strategies that the big brands have been enjoying.  With this in mind, you can summon your creative powers to come up with innovative ways to hold a contest.  You can even use the viral influence of the internet to hold online games, text promotions, online raffle draws and whatever you can think of that will create

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