Over-Redemption

Category: Promotions
Group: Specialty Group

Sometimes a coupon or free product offer can be "too successful." Over-redemption insurance from Tokio Marine HCC - Specialty Group can protect sponsors and marketers against an unexpected result of their promotion.

Highlights

Ideal for "buy one, get one free" coupons or multi-purchase benefits
Eliminates the financial risk associated with an effective business-building tool
Increased costs of promotion are covered by the policy

Best For

Advertising agencies
Marketers
Retailers
Sponsors

Summary of Coverage

Over-redemption insurance allows a marketer or sponsor to transfer the risk of a coupon or free product offer that is “too successful.” Sponsors and marketers often will distribute “buy one, get one free” coupons or multi-purchase benefits to increase awareness and sales of their products. This coverage allows marketers and sponsors to protect themselves against an unexpectedly high redemption rate of those coupons.

Prize Indemnity

Tokio Marine HCC offers prize indemnity insurance to protect against financial risks, by covering contingent prizes on behalf of sponsors or promoters.

Retailer Promotions

Tokio Marine HCC has put together insured prize promotions specifically for the retail industry to help increase sales over a specified period of time.

Game of Chance Bonds

Game of chance surety bonds (promotion sweepstakes bonds) are required in Florida and New York for any game of chance promotion with a retail value over $5,000.

Why Tokio Marine HCC?

Tokio Marine HCC is a leading specialty insurance group with offices in the United States, Mexico, the United Kingdom and Europe, transacting business in approximately 180 countries and underwriting more than 100 classes of specialty insurance. Our products and capabilities set the standard for the industry, and many of our almost 3,000 employees are industry-leading experts. Each of our highly entrepreneurial businesses are equipped to underwrite special situations, companies and individuals, and acts autonomously to deliver effective solutions.