Specialty Promotion Insurance Products

• Incentive Bonus: Incentive provisions are common in sponsorship or endorsement contracts with professional athletes; if the athlete achieves certain goals in his/her sport, the sponsor/endorser is contractually obligated to pay bonuses on a specified basis.  Since these bonuses are large additional sums, the potential contractual liabilities are significant.  The Incentive Bonus policy offers a guaranteed cost (the premium) and assumes the possible pay-out of the contract, reimbursing the insured for the sums they are obligated to pay.
• Prize Indemnity: Games of chance where a prize can be awarded to a winner are commonly insured on a Prize Indemnity form.  The policy "pays on behalf of" the Named Insured if an eligible individual or contestant wins. It can cover basketball shots, holes-in-one, random number games, or any other advertising promotion.  The policy limits can range from $2,500 to well over $1 million, or the cost to purchase an annuity to pay out the prize over time.  Note: Prize Indemnity is NOT intended for promotions with a guaranteed winner.
• Coupon Over-Redemption: Promotion or product managers have percentage estimates of what rebate or refund promotions will actually return. If the promotion is wildly successful, and the actual redemption level exceeds the budget, Coupon Over-Redemption insurance provides a limit of liability selected by the insured, above an agreed redemption estimate.  This gives the brand or product manager a fixed cost (premium) for the promotion budget and helps protect them from unexpected over-redemptions.
• Cancelation Of Event: Events held off corporate premises are not generally covered by business interruption insurance.  A Cancellation of Event policy provides coverage for net incurred expenses only or gross revenue lost if an event is canceled or postponed for a reason beyond the insured's control.
• Non-Appearance: Events that rely on the appearance of a single individual or group are subject to cancellation and lost expenses and/or revenue if that person or persons are unable to appear for reasons beyond their control.  Non-Appearance policies provide coverage for "all risk" of cancellation or postponement including medical causes (subject to pre-approved medical report).
• Signal Interruption: Any "live" or one time event that is broadcast is subject to a breakdown that prevents completion of the transmission.  This can be over traditional media such as network TV or other non-traditional distribution methods such as pay-per-view cable, Direct Broadcast Satellite, and the Internet.  Signal Interruption insurance covers rights payments, advertising revenue and/or production costs lost if the signal is unable to be transmitted due to a malfunction.  
• Special Events Liability: Advertising, sports and promotion events frequently include activities that are outside an organization's typical operations.  Fairs, festivals, galas, rock concerts and professional sporting events often require a short-term liability policy.  This Special Event Liability policy can cover an individual event or events, protect the corporate program's loss experience, "buyback" corporate program self insured retentions (SIRs), and offer enhanced coverages for the events such as participant's liability.
• Spokesperson Reputation: It is possible to insure a spokesperson's integrity.  If their reputation is tarnished, loss of profits and extra advertising expense could result.

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