Want to create buzz around a new product? Get people excited about your brand? Build awareness regarding your newly opened business?
You could call a marketing firm and spend a great deal of money or, you could call your insurance broker.
There is a product known as “prize indemnity insurance” which can be an extremely effective and fun marketing tool.
How does prize indemnity work?
The most common prize indemnity insurance is known as “hole in one” coverage and you may have seen examples of this at golf tournaments or read about it on our blog. Basically, you swing a golf club, put a golf ball in the hole and win the advertised prize. The odds of an amateur golfer hitting a hole in one, on a standard par 3 hole, are about 1 in 12,500. These low odds allow insurance companies to provide “hole in one” insurance and as a result, golf tournaments and/or sponsors can offer significant prizes to golfers during the insured round. By becoming a sponsor, you receive the benefits of advertising, signage and general brand recognition. In addition to hole-in-one insurance for golf events, prize indemnity insurance companies also offer coverages for other types of contests such as half-court shots in basketball, field-goal kicks in football, home runs in baseball, and blue-line goals in hockey.
Prize indemnity goes beyond sports and can be lottery-based as well. A popular version of these promotions is known as the vault. There is a cube of clear Plexiglas with a 10 digit electronic keypad, a large viewing screen, a loudspeaker, and lights. A key-locked door on the front of the vault allows prizes to be displayed inside. These could be replica cars, stacks of bills, houses, vacation photos, etc. Prizes are usually available from $25,000 to $1,000,000. Contestants enter their personal digit number on the vault’s keypad to see if it matches the “secret code”. If the contestant is unsuccessful, the vault will sound a “sorry” response and that contestant’s turn is over. If the numbers match, lights flash, siren sounds, and the contestant is awarded the insured prize. This has been used quite successfully in getting people through the doors of newly built homes, business grand openings, and other various events!
We have a variety of marketing tools that can create a significant buzz for your product, service or company brand. Let us help you advertise your business by providing you with a quotation for “prize indemnity” insurance.