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Why Promotion Insurance is so important

By James Blee Subscribe to RSS | August 8th 2012 | Views:
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Promotion insurance is designed especially for companies who are planning on running a specific sales promotion to generate interest in their brand or a particular product. Companies will often run promotions to boost sales and they are often run to launch a new product or service. Any business that is planning on running a sales promotion should invest in promotion insurance to minimise their risk and ensure that their costs don’t spiral out of control in a situation of over redemption. The types of promotions that people may choose to invest in promotional insurance for are instant wins, cash backs, conditional cash backs, coupons, gifts, competitions and scratch cards. When companies run promotions they can be very unpredictable and it can be hard to predict how many people will take part. This can mean that the budget often grows as more people than expected redeem the promotion. Having promotional insurance will cover companies against this and it will mean they pay a fixed fee for the promotion that they want to run.

There are companies who specialise in risk management of promotions for businesses and they are the people who will provide specific promotion insurance products that will meet the specific needs of each one of their clients. Due to the fact that most promotions that companies run are very specific to their business Promotion Insurance needs to be tailored to each specific promotion and not just a generic off the shelf insurance policy. Promotional insurance will guarantee that companies don’t end up losing money when they run a promotion as this would defeat the whole object of the promotion in the first place.

The company that a business chooses to use for promotion insurance will work closely with that customer to assess all the risks involved with running the promotion to make sure that it is financially viable before it takes place. They will be able to make recommendations on how to run a successful promotion for specific types of businesses and the best type of promotion insurance for that business.

James Blee - About Author:
Promotion Insurance from team-umbrella.co.uk. If you are
involved with running a sales promotion where the customer response is unknown, we can help. Visit us for
Promotional Insurance.

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