Published: 02-Apr- 2007 | Product Category: Other
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Incentive provisions are common in sponsorship or endorsement contracts with professional athletes; if the athlete achieves certain goals in his/her sport, the sponsor/endorser is contractually obligated to pay bonuses on a specified basis. Since these bonuses are large additional sums, the potential contractual liabilities are significant. The Incentive Bonus policy offers a guaranteed cost (the premium) and assumes the possible pay-out of the contract, reimbursing the insured for the sums they are obligated to pay.