We want to make sure we are on the same page with our customers and to eliminate any misunderstanding. It’s important for our clients to have a clear understanding of prize insurance terminology. If you are new and are thinking about setting about coverage, it could be overwhelming to hear new jargon. We broke down a few terms you will come across when speaking to one of our representatives when setting up coverage. See below:
Prize Coverage – is insurance for a promotion in which the participants are offered the chance to win prizes. Instead of keeping cash reserves to cover large prizes, the promoter pays a premium to an insurance company, which then reimburses the insured should a prize be given away.
Insurance Policy – a document detailing the terms and conditions of a contract of insurance.
Insurer – a person or company that underwrites an insurance risk; the party in an insurance contract undertaking to pay compensation.
Insured – a person or organization covered by insurance.
Prize Value – the amount offered or striven for in a competition or in contests of chance.
Contestant – a person who takes part in a contest or promotion.
Event Date – the particular month, day, and year at which some event will happen
Sales Promotion – is one level or type of marketing aimed either at the consumer or at the distribution channel (in the form of sales-incentives). It is used to introduce new product, clear out inventories, attract traffic, and to lift sales.
Now that you are clear on the terms, it’s time to set up your prize coverage! Give us a call at 888-882-5140 or email us at email@example.com.