Understanding Promotional Insurance Will Safeguard Your Next Sporting Promotion

When promotional marketing is done well it can be a success for all concerned not least the marketing agency and of course the brand who are likely to see a fantastic increase in products sales. Sometimes the cost of honouring promotions that do well can cost brands huge sums of money so it is in their best interests to consider promotional insurance and hire a promotional risk management company as soon as they can.



Participation rates for promotional campaigns linked to sporting events are particularly high and consequently the cost of insuring these types of sporting promotions can equally be as high. One of the key reasons for this this is that sporting events can be unpredictable by their very nature.



For example, take the times when certain key players are not available for team selection due to injuries or personal issues and you will see promotional insurance premiums drop through the floor. The same can be applied to high ranking individual sporting champions who experience a lull in form that sees their closest rivals start to rise through the ranks. Insurance premiums for these types of unpredictable events can rise very dramatically over a very short period of time.



The same can be said of those national teams and players who historically don’t perform very well. A change in mentality and training regimes can see a massive turn in fortune and often the greatest haul medals ever seen. Promotions that are directly linked to such events can prove expensive if not managed correctly.



The bottom line is that insurance companies want and need sporting events to run to form. These companies completely stay away from insuring any promotions linked to events such as horse racing due to their unpredictability. So what can you do to ensure that your promotional campaign runs to budget and as efficiently as possibly?



1. The first option is that the brand can self-insure. This means that the brand covers the entire cost of the promotion including any physical or digital fulfilment of the customer prize or reward. Where the prize or reward is a physical one the brand will assume the cost of the physical pick, pack, and postage. The costs of any over redemptions are also born by the brand.

2. A limited amount of over redemption insurance can be purchased to help cover the cost of those promotions that do very well. This helps the brand meet the costs of unexpected results of sporting events.

3. Hire a promotional risk management company who will provide "fixed fee" to cover the entirety of the promotion. What this means is that a one-off fee is agreed upon at the outset of the promotion but which covers the entire cost of said promotion. This includes the complete fulfilment of the reward and any over redemptions that occur.



Sporting events are great for generating innovative and creative marketing campaigns. Ensure your brand is completely protected by hiring the right promotional risk management company and ensuring that promotional insurance is in place.



By getting the right promotional insurance in place early could save your brand a fortune. For more FREE tips and impartial advice visit www.mandofixedfeeblog.co.uk today.