Article October 29, 2018

Promotions and prize offerings

Promotions and prize offerings can be a valuable way to attract customers to your business. They come in a variety of shapes and sizes, from small, local retailer promotions to skill games at national sports events and online or land based casino promotions.



Promotions are a popular way to generate brand awareness and increase sales, yet ironically, their success could spell financial trouble for a business.

Our over-redemption policy comes into play when special promotions achieve a greater response than you had anticipated. Anything from “see above” to coupons falls into the promotions category. As well as on-pack and in-store promotions, response-based direct mail, loyalty programs, gift card programs, pre-paid credit cards, paper and electronic coupons, and other activities that have a quantifiable cost associated.


Sports events are a big deal. They bring people together, generate plenty of press and are popular advertising platforms for brands. Many businesses use games as a way to advertise their services by offering prizes or special deals on condition of specific game results, yet this also exposes them to the risk of financial loss.

Our prize indemnity policy covers a wide range of prize competitions including hole-in-one competitions, sports skill contests, contractual bonuses, predictor games, conditional rebates and more. This means you can run sports events promotions without the fear of being seriously out of pocket if someone gets lucky.


Companies exhibiting at tradeshows have to continuously find new ways of standing out from the crowd and engaging with visitors and delegates. Promotions and prize giveaways are a popular way on increasing footfall at a stand - and they are becoming increasingly complex and valuable. Whether offering money or material prizes, our prize indemnity insurance can help you offer larger prizes and run more exciting promotions.

Yet the more valuable the promotion, the higher the risk of being out of pocket should things not go to plan. That’s where our policy comes in. Read on for some examples and how our prize indemnity insurance can help companies offer larger prizes and run more exciting promotions.


Lotteries remain as popular as ever – the chance to win big continues to attract players, regardless of how statistically small that chance is. Lottery operators compete against a wide range of providers, both digital and analogue, and prizes continue to increase in value as they vie for customers’ attention. This, however, also comes with a risk to the operators.

Our prize indemnity insurance enables lotteries to offer large jackpots without risking financial loss. Below is an example of how our policy can help lottery operators continue to play at the top of their game.


As gambling – both digital and analogue – continues to be ever popular and prizes become increasingly valuable, prize indemnity insurance is a must for providers of these services. Our cover insures against the eventuality of someone striking lucky despite all odds, meaning you can continue to run these types of promotions without the fear of being seriously out of pocket if someone gets lucky.


Gaming is a huge industry, with the continued rise of smart phones only set to further grow the market. Our prize indemnity insurance allows you to continue to run attractive promotions without worrying too much about potential losses.

Our prize indemnity policy covers a wide range of prize competitions including predictor games, conditional rebates, mathematical games and more.


CFC contingency products are designed to help you run these activities without the fear of financial loss. If you'd like to find out more please visit the products page or contact the team.