Big Prize on a Tiny Budget
Prize insurance allows you to add a large Grand Prize with no risk and little money. For $1,000 you can have a $10,000 Grand Prize! Grand Prizes range from $10,000 to $10,000,000.
A cost effective way to keep your prize budget low, while increasing the total amount of prizes.
Companies love it. Consumers love it. Because it works.
Winning Promotions LLC arranges coverage via certain underwriters at Lloyd's and other credible insurance companies. Prize insurance can be added to any promotion. We can show you how to maximize your prize budget.
How It Works
Prize insurance pays out the Grand Prize based on probability.
At the end of a promotion a person, the lucky winner, is picked to have a chance to win the Grand Prize. It does not mean they have won the Grand Prize. They have a chance to win the Grand Prize.
It can best be explained as an example.
A TV classic that a lot of people have seen is the "Dr. Pepper Throw a Football" promotion. If a person throws 10 footballs into an 8 foot tall Dr. Pepper can, with a hole in it, they win a $1,000,000 dollars!
Dr. Pepper does not pay $1,000,000 if the person wins. The insurance company, who issued the prize insurance policy, will pay the $1,000,000 Grand Prize. Dr. Pepper paid the insurance company for a prize insurance policy worth $1,000,000 dollars in coverage. The cost for the prize insurance would be estimated at $15,000.
The insurance company will determine the probability of a random person being able to successfully complete the task. In this case, 10 footballs into a giant pop can. Once the probability has been determined, the insurance company will then set a price.
Normally, the price for prize insurance is 10% - 15% of the Grand Prize amount.