Sales Promotion Insurance
Sales promotion companies and agencies have unique insurance needs. Whether your primary business is sales promotion or whether you’re a marketing agency that has been asked to undertake sales promotion campaigns, it’s important to understand what insurance you need and most importantly what contractual conditions you have signed up to.
At Whinney Insurance Brokers we have 6 years experience insuring sales promotion agencies. We can offer a specialist professional indemnity policy to cover your sales promotion business and activities.
Why choose Whinney Insurance Brokers? Why can’t my local broker source an appropriate policy?
– There’s no reason your local broker cannot arrange professional indemnity for you. However there are hundreds of different professional indemnity policies available. Some will cover you, some won’t; it’s important your broker fully understands you need cover tailored to your needs.
– We understand the important exclusions to be aware of. We can help you through some of the common minefields sales promotion companies face when reviewing a professional indemnity policy.
– Does your sales promotion company need over redemption cover? Can you contractually exclude over redemption?
– Prize indemnity cover. Are your clients insisting that you provide prize indemnity insurance?
– Are you being asked to provide redemption level estimates or forecasts? What if these are exceeded or not met?
– We understand your sector. We understand the cover you need.
More questions than answers?
We are here to help. We have undertaken a broad review of the professional indemnity insurance market for sales promotion companies and agencies.
Here’s our (high level) summary:
Basic Professional Indemnity Insurance Policy
Many brokers or insurers may simply offer you their standard miscellaneous professional indemnity insurance wording. Yes, it will provide you with some cover provided that when presenting your business you clearly define all the sales promotion activities.
But, yes here’s the but! It will NOT cover your sourcing or supply of products for sales promotion activities. It will almost certainly have what is known as an absolute products exclusion.
If you’re unlucky, it might only cover basic negligence (or mistakes). It may exclude cover for all or some of the following:
– breaches of intellectual property
– breaches of confidentially
– defamation (libel and slander)
As it’s a general (miscellaneous) policy wording it will have no language specific to your industry. It will NOT define what cover is provided for prize indemnity, over or under redemption and or redemption estimates. That doesn’t mean redemption or prize indemnity is covered. The insurer will have a broad absolute exclusion for any contractual liabilities, which they will rely upon to exclude any such claims.
A specialist marketing agency or sales promotion agency insurance policy
Firstly the wording will contain language specific to your industry and your business as a sales promotion or marketing agency.
– It may, depending on the insurer, provide you with an element of contractual cover. So cover for liability you incur over and above what is normally afforded at common law.
– That doesn’t mean that everything you do is covered! But it will be clear on what you are and what you are not covered for as a sales promotion agency. So it will have specific language relating to over redemption, which is usually excluded as standard. But you may able to ask the insurer to provide an inner limit for over or under redemption at an additional premium. You can arrange a standalone prize indemnity policy to sit alongside your professional indemnity.
– The policy may contain a sourcing and supply of promotion products extension. Rather than an absolute products exclusion. Usually you are required to meet certain criteria when sourcing products for the cover to respond, such as using suppliers with a EU presence and keeping adequate records. We can help you run through this if required.
Standalone prize indemnity and over redemption insurance policies
– These policies will usually cover you for prize indemnity and over or under redemption only. They will not cover all of the other exposures that a traditional professional indemnity policy will cover such as negligence, breach of intellectual property and breach of confidentiality.
– But provide a solution when you require protection for large value competitions, coupons etc.