To 'insure' is to protect someone against a possible lost. As humans are naturally territorial, we have a tendency to
protect what's ours. This is possibly one reason why a lot of people sign up for a wide array of insurance packages. The most
common insurance packages that we know are those that cater to individual needs like the Auto Insurance, Health Insurance, Life
Insurance, and Property Insurance. However, insurance companies do not only limit themselves to personal coverages. They also have a
wide array of Business Insurances that you are probably not aware of.
Businesses, unlike most individuals, tend to hold bigger funds, assets, and liabilities, thus the need to also insure them. Every
business needs protection and security to possible damages or lost. The bigger your company is, the more you need to be ready with the
unpredictable nature of the industry. There are a lot of insurance products that cater to all types of companies--whether a budding
business or an established one.
Prize Indemnity Insurance
Have you ever tried joining raffles, events, or contests? Have you ever wondered how companies who host sporting events manage their
funds for prizes? We are often amazed by the cash prizes we see on television and events. We even join contests or raffles whenever the
prizes seem so inviting. But how do companies manage their loss whenever these contests, raffles, or sports events do not get their
target income? What if the event gets cancelled or postponed? What happens if sponsors don't pay what they are supposed to
Prize Indemnity Insurance insures a company's lost whenever they host contests or raffles that cost a car, house, or a major
prize. Through these Prize Indemnity Insurance Companies, the host company of such events will be able to guarantee a prize without
having to pay for it. This type of Insurance is also called as Hole-in-one Insurance. It was named after Hole-in-one golf tournaments.
For you to obtain a prize, you need to secure a shot thru hole-in-one. It is quite impossible to win that shot, thus making lower stakes
for the prize.
Prize Indemnity Insurance requires companies to pay out a premium, usually starting at 3% and depends on the stakes of winning. If
ever there is a winner for the event hosted by a company, the Prize Indemnity Insurance will pay for the prize. But if ever no one wins
the event, the Prize Indemnity Insurance will earn with the premium payed by the company.
Contingency Insurance, on the other hand, provides a big coverage for companies hosting events. When we say 'contingent',
nothing is sure. In other words, Contingency Insurance pays for what isn't sure. Whenever something goes beyond the expected, the
Contingency Insurance will cover it. It is also a way of risk management for companies in case their plans go wrong. There are unavoidable
circumstances that can cause a company to postpone, interrupt, or even cancel events and by these, contingency insurance will be a
Being insured is being protected. Since you cannot predict everything, you should be ready to face the unexpected. Insurance companies
will help you recover in such situations.