The Specialty Prize Indemnification Insurance Guide
Prize Indemnification Insurance. This guide provides information on excess, surplus and specialty lines small business insurance policies and risks.
Here you can find basic descriptions of the specific industry risks or specialty coverage types available for Prize Indemnification Insurance.
For certain types of small businesses, particularly new ones - it is often very hard to know what types of commercial insurance is needed, what the risks are that should be covered - and where to find coverage.
We wanted to provide reference for specialty commercial insurance to help our readers get a better understanding of Prize Indemnification Insurance policies they might need to do business.
Learn about Specialty Prize Indemnification Insurance to better understand common risks, exposures and the types of commercial insurance coverage available to protect your small business and it's operations.
Prize Indemnification Insurance Types
Click on the links below to learn more about Specialty Prize Indemnification Insurance types and coverages:
- Fishing Contests Insurance
- Hole-in-One Coverage
- Internet Promotions Insurance
- Media Promotions Insurance
- Prize Indemnification Insurance
- Sales Redemption Campaigns Insurance
- Sports Promotions Coverage
What Type Of Insurance Do Fishing Contests Need?
Fishing contests, tournaments, and tagged fish derbies are as popular with fishing enthusiasts as hole-in-one tournaments are with golfers. Both are offered as prize indemnification programs for the event's sponsors or for the parties that provide the prizes. Coverage can be customized in an event format based on each individual tournament's needs and requirements. Prize promotions can fit all categories of tournaments, from children's fishing rodeos to bass or walleye tournaments to offshore sports fishing events. Tournaments can select from prize categories such as Lake Record Fish, First Place Big Fish, or Second Place Fish. Coverage is available for a variety of top prize amounts.
What Is Hole-in-One Coverage?
Hole-in-one coverage is a form of prize indemnification insurance. It is purchased by sponsors of local golf tournaments who provide prizes to any golfer who scores a hole-in-one on a designated hole during the event. Prizes include new cars, riding lawnmowers, clothes, other merchandise, or cash. Insurance is arranged prior to the event and indemnifies the insured only if the hole-in-one is made and the prize awarded. It usually has a warranty to the effect that at least two tournament officials certify the hole-in-one before it pays the insured's loss. The warranty also usually requires that the hole must have been played according to the details in the agreement.
What Is Internet Promotions Isurance?
Businesses use a variety of methods to attract potential clients to their websites. These can include sporting events, "watch, listen, and win" contests, second chance lotteries, and other promotions. The different Internet promotions can be combined with direct mail or e-mail campaigns. The goal is to increase website return visits; assist in collecting demographic information; and to enroll members. This insurance is similar to "hole-in-one" and other promotional insurance coverages. The value of "payoffs" and costs vary.
What Is Media Promotions Insurance?
Print and radio broadcast promotions can boost market share, attract advertisers, and increase visibility. Some radio promotions may require listeners to listen continually in order to gather necessary clues. In others, a listener may be required to name the recording artists who sang sound bites of five songs strung together. Print promotions may require the reader to send email or mail in required information. This type of promotion has a direct impact on listener and reader loyalty. This insurance protects against the number of winners or the amount of the winnings exceeding the prize budget.
What Is Prize Indemnification Insurance?
Fund-raisers and prize giveaways at sporting events attract people to "chase the pot of gold at the end of the rainbow." The sponsors need prize indemnification insurance for the winners of the $1 million prize. The coverage for large prizes is tailor-made and uses a basic inland marine policy. The pricing is based on the odds of winning the prize as the insurance company calculates them. Common examples of contests include hole-in-one, tagged fish, and record fish. Using the example of a charity-sponsored fishing event that uses a tagged fish, the underwriter considers the type of fish, the number of participants, where the event will be held, and the number of days the event will run. In prize insurance for sporting events, the important factor is the degree of difficulty involved. Large prizes are usually insured on the basis of an annuity.
What Is Sales Redemption Campaigns Insurance?
This insurance coverage may be arranged for businesses that conduct sales redemption campaigns as part of their marketing and sales promotion activities. Such campaigns may exceed projected goals or fail to reach desired results and this insurance eventually responds to either. The business may sustain a significant loss if more than the projected number of coupons is redeemed. This coverage is available for promotions such as collect-and-win games, collect proofs of purchase and receive a free gift, or money-off coupons. Under-redemption occurs when fewer buyers than projected take advantage of an offer, such as when a fast food restaurant offers giveaway items that accompany children's meals. If the promotion achieves lower than expected sales, the restaurant is left with an overabundance of these giveaways.
What Is Sports Promotions Coverage?
Prize and performance incentive coverage takes the risk out of sport promotion contests. The coverage is available for any type of organization that is using an existing athletic or sports-fan contest to promote an event or marketing campaign. The coverage is a way to keep the program within budget.
Prize Indemnification Insurance - The Bottom Line
We hope that the Prize Indemnification Insurance helps you to better understand the some of the specialty small business commercial insurance policies available for your business. To find out what types of coverage your unique business needs, speak to a professional commercial broker with experience in insuring businesses like yours.
Specialty Small Business Insurance Guide By Industry, Risk Or Policy Type
- Accident And Sickness / AD&D
- Aircraft And Airports
- Amusement Parks And Rides
- Animals And Birds
- Arts And Antiques
- Auctions And Farmers Markets
- Automobiles, Trucks And Recreational Vehicles
- Business Risks
- Clubs And Leisure Time Activities
- Community Service Organizations
- Dealers And Distributors
- Directors And Officers Liability
- Drugs And Alcohol
- Employee Protection
- Environmental Risks
- Errors And Omissions
- Farm Risks
- Financial Institutions And Services
- Firearm And Shooting
- Food And Restaurants
- Hazardous Materials
- Health Risks
- Hotels And Motels
- Inland Marine
- Insurance Services
- Machinery And Tools
- Medical Centers And Clinics
- Medical Malpractice
- Mobile And Modular Homes
- Motorcycle Risks
- Natural Disasters
- Nonprofit Agencies
- Oil And Chemical
- Physical Damage
- Prize Indemnification
- Product Liability
- Real Estate
- Retail Stores
- Schools And Education
- Security Risks And Equipment
- Service Businesses
- Sports And Hobbies
- Substandard Risks
- Weather Related
- Workers Comp
Types Of Small Business Insurance - Requirements & Regulations
Perhaps you have the next great idea for a product or service that you know will appeal to your local area. If you've got a business, you've got risks. Unexpected events and lawsuits can wipe out a business quickly, wasting all the time and money you've invested.
Operating a business is challenging enough without having to worry about suffering a significant financial loss due to unforeseen and unplanned circumstances. Small business insurance can protect your company from some of the more common losses experienced by business owners, such as property damage, business interruption, theft, liability, and employee injury.
Purchasing the appropriate commercial insurance coverage can make the difference between going out of business after a loss or recovering with minimal business interruption and financial impairment to your company's operations.
Insurance is so important to proper business function that both federal governments and state governments require companies to carry certain types. Thus, being properly insured also helps you protect your company by protecting it from government fines and penalties.
Small Business Insurance Information
In the business world, there are many risks faced by company's every day. The best way that business owners can protect themselves from these perils is by carrying the right insurance coverage.
The The National Association of Insurance Commissioners (NAIC) is the U.S. standard-setting and regulatory support organization. Through the NAIC, state insurance regulators establish standards and best practices, conduct peer review, and coordinate their regulatory oversight.
Commercial insurance is particularly important for small business owners, as they stand to lose a lot more. Should a situation arise - a lawsuit, property damage, theft, etc. - small business owners could end up facing serious financial turmoil.
According to the SBA, having the right insurance plan in place can help you avoid major pitfalls. Your business insurance should offer coverage for all of your assets. It should also include liability and casual coverage.
Types Of Small Business Insurance
Choosing the right type of coverage is absolutely vital. You've got plenty of options. Some you'll need. Some you won't. You should know what's available. Once you look over your options you'll need to conduct a thorough risk assessment. As you evaluate each type of insurance, ask yourself:
- What type of business am I running?
- What are common risks associated with this industry?
- Does this type of insurance cover a situation that could feasibly arise during the normal course of doing business?
- Does my state require me to carry this type of insurance?
- Does my lender or do any of my investors require me to carry this type of policy?
A licensed insurance agent or broker in your state can help you determine what kinds of coverages are prudent for your business types. If you find one licensed to sell multiple policies from multiple companies (independent agents) that person can often help you get the best insurance rates, too. Following is some information on some of the most common small business insurance policies:
|Business Insurance Policy Type||What Is Covered?|
|General Liability Insurance||What is covered under commercial general liability insurance? It steps in to pay claims when you lose a lawsuit with an injured customer, employee, or vendor. The injury could be physical, or it could be a financial loss based on advertising practices.|
|Workers Compensation Insurance||What is covered under workers compensation insurance? This type of insurance protects a business and its owner(s) from claims by employees who suffer a work-related injury, illness or disease. Workers comp typically provides the injured employee with benefits to cover medical expenses, a portion of his/her lost wages, rehabilitation costs if applicable, and permanent partial or permanent total disability.|
|Product Liability Insurance||What is covered under product liability insurance? I pays an injured party's settlement or lawsuit claim arising from a defective product. These are usually caused by design defects, manufacturing defects, or a failure to provide adequate warning or instructions as to how to safely use the product.|
|Commercial Property Insurance||What is covered under business property insurance? General liability policies don't cover damages to your business property. That's what commercial property insurance is for. It protects all of the physical parts of your business: your building, your inventory, and your equipment, giving you the funds you need to replace them in the event of a disaster. If you work from home, you might consider a Home Based Business Insurance policy instead.|
|Business Owners Policy (BOP)||What is covered under a business owners policy (BOP)? This is a policy designed for small, low-risk businesses. It simplifies the basic insurance purchase process by combining general liability policies with business income and commercial property insurance.|
|Commercial Auto Insurance||What is covered under business auto insurance? This type of insurance covers automobiles being used for business purposes. This could include a fleet of business-only vehicles or a single company car. In some cases it might cover your car or your employee's car while they're being used for business. These policies have much higher limits, ensuring you can cover your costs if one of these vehicles gets into an accident.|
|Commercial Umbrella Policies||What is covered under commercial umbrella insurance? This type of policy is a sort of "gap" insurance. It covers your liability in the event that a court verdict or settlement exceeds your general liability policy limits.|
|Liquor Liability Insurance||What is covered under liquor liability insurance? It covers bodily injury or property damage caused by an intoxicated person who was served liquor by the policy holder.|
|Professional Liability (Errors & Omissions)||What is covered under professional liability insurance? This type of business insurance is also known as malpractice oe E&O. It covers the damages that can arise from major mistakes, especially in high-stakes professions where mistakes can be devastating.|
|Surety Bond||What is covered under surety bonds? Bonding is a contract where one party, the SURETY (who assures the obligee that the principal can perform the task), guarantees the performance of certain obligations of a second party, the PRINCIPAL (the contractor or business who will perform the contractual obligation), to a third party, the OBLIGEE (the project owner who is the recipient of an obligation).|
Who Needs General Liability Insurance? - Virtually every business. A single lawsuit or settlement could bankrupt your business five times over. You might also need this policy to win business. Many companies and government agencies won't do business with your company until you can produce proof that you've obtained one of these policies.
Business Insurance Required by Law
If you have any employees most states will require you to carry worker's compensation and unemployment insurance. Some states require you to insure yourself even if you are the only employee working in the business.
Your insurance agent can help you check applicable state laws so you can bring your business into compliance.
Other Types Of Small Business Insurance
There are dozens of other, more specialized forms of small business insurance capable of covering specific problems and risks. These forms of insurance include:
- Business Interruption Insurance
- Commercial Flood Insurance
- Contractor's Insurance
- Cyber Liability
- Data Breach
- Directors and Officers
- Employment Practices Liability
- Environmental or Pollution Liability
- Management Liability
- Sexual Misconduct Liability
Whether you need any or all of these policies will depend on the results of your risk assessment. For example, you probably don't need an environmental or pollution policy if you're running an IT company out of a leased office, but you would need data breach and cyber liability policies to fully protect your business.
Also learn about small business insurance requirements for general liability, business property, commercial auto & workers compensation including small business commercial insurance costs. Call us (855) 767-7828.