Prize Indemnification

Written by Gregg Ruais
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People are always enticed by profitable rewards; television reality shows are ironclad proof of this, as contestants commonly eat bugs and drink the foulest fluids imaginable in the hopes of winning money. Accordingly, organizations that want to raise money can offer significant prizes that attract contestants to their events, which don't have to include disgusting or degrading activities. Small organizations may not be able to afford the prizes given out on television shows, but insurance companies sure can. Organizations that are insured hold contests for big money prizes all the time, and the cost of coverage is very affordable.

Popular contests include golf putting, long-distance basketball shots, and field goal kicking. Insurance companies offer prizes ranging from $5,000 to $1 million dollars. Indemnity costs a few hundred dollars for awards on the lower end and just over one grand for the million dollar awards.

Big-Money Contests Attract Participants

All sports fans have seen people win money on television. Back when Michael Jordan played for the Chicago Bulls, a lucky fan made a full-court shot for $1 million at a Bulls home game. At Midnight Madness, one college student sunk a half-court shot, and ESPN paid for eight semesters of tuition. At the NFL Pro-Bowl, one fan kicked a 30 yard field goal for $1 million. When people see the opportunity to enter these contests, their eyes light up with dreams of riches.

Revenue accumulated from participant entry fees can easily cover the cost of insurance, making this a win-win proposition for event hosts. Organizers get their money back from the insurance by attracting many people. More importantly, they don't have to worry about paying the awards, so they can root for people to succeed.

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