Hole in One Insurance

4 minute read Published on Mar 28, 2024 by BrokerLink Communications

Hole in One Insurance

Many Canadians count just two seasons each year, winter and golf season! Golf is a favourite pastime for many across Canada and nothing beats a golf tournament as a great way for people to show off their skills, network and even raise money for a good cause!

Golf tournaments come in all shapes and sizes, from large to small, corporate to charity, and one of the best ways to generate excitement and attract participants to your tournament is to offer big prizes for amazing achievements, like getting a hole-in-one!

How likely is a hole-in-one?

According to PGA of America, the chance of the average golfer hitting a hole-in-one is 1/12,500! While the odds may seem low, it’s possible and it’s happened. That’s why golf tournament organizers usually opt to pay a reasonably priced hole-in-one insurance premium, rather than risk having to pay out a grand prize at their expense.

How does hole-in-one insurance work?

A hole-in-one prize is offered to entice people to join a tournament, although organizers or sponsors don’t really expect someone to win. But a hole-in-one can happen. And, if it does, the organizers must come up with the funds to award the prize!

Hole-in-one insurance provides peace of mind to tournament organizers and sponsors, by offering the specialized coverage they need to accommodate a prize if someone wins.

A hole-in-one policy averages around $100, however, cost is dependent on several factors outlined in the application, including the number of participants, distance to the hole, and the amount of the prize value a tournament organizer or sponsor chooses to insure.

The policy may be purchased through an insurance broker or in some cases, directly with an insurer that offers this specialized coverage.

Each insurance company has specific policy conditions and limits, but most share the same basic principles, for example:

  • Multiple holes can be insured on one policy or you may need a separate policy per hole.
  • Prizes are covered up to a specified maximum.
  • Quotes will vary, depending on the number of participants, distance, prize value, etc.
  • A policy changed to a new date if you need to reschedule.
  • A policy may be cancelled before a scheduled tournament date.
  • There may be stipulations, for example, 150 yards per hole minimum and all golfers no matter age, gender, must hit from at least this distance.
  • Most policies cover all levels of golfers, but this should be validated. Some companies offer extra perks, including additional coverage for a second winner, free signs and more.

Given the odds mentioned earlier, it’s rare that a hole-in-one prize is awarded and often the only financial cost to a tournament organizer is the premium paid in advance – a small price to pay considering the alternative!

Why should I buy hole-in-one insurance?

  1. Attract attendees and generate excitement! A hole-in-one prize is a great way to generate excitement for your tournament, as it gives you the opportunity to attract attendees by offering big prizes, from vehicles to cash up to $1 million!
  2. Raise money for a cause! More attendees could mean more donations and awareness for your charitable organization or cause.
  3. Low price to pay for peace of mind. Premiums are available at a very low cost, compared to a large payout you could be on the hook for, in the event that someone sinks a hole-in-one at your tournament!

Living near a golf course

Neighbourhoods surrounding golf courses often possess scenic views, and if you happen to be a golfer you can enjoy the benefit of practically having a golf course in your backyard. However, living in close proximity to a golf course also comes with the inconvenience of stray golf balls flying onto your property. Not only can this pose a threat to the safety of everyone in your household, but it can also cause considerable damage to your home and possessions.

When it comes to damages from golf balls landing on your property, who takes on the financial responsibility? Technically, the golfer who hit the ball onto your property is at fault and they may be able to utilize their home insurance policy to cover your repairs. Golf courses post signs on the tee boxes and fairways advising golfers of areas where they should take extra caution as there is a greater chance of hitting the ball onto residential property.

Unfortunately, it’s common for an offending golfer to flee after hitting a stray golf ball. In these instances, you as the homeowner will need to take care of your own repairs. Living near a golf course means that you assume the inherent risk of possible damages that can result from activity on the course. This includes having errant balls impact your property.

While damages are typically covered by your home insurance policy or comprehensive auto insurance, you will always have to pay a deductible. To minimize the risk of home or auto damage from golf balls, you might consider installing shatter-proof windows or a netting system adjacent to your property.

Golf carts and insurance

What type of insurance is required for golf carts? By extending your home insurance policy to cover your golf cart, your cart will be insured while on the golf course as well as within residential areas. This protection will cover you for liability in the event your cart is involved in a collision, as well as for potential fires, theft, vandalism and other types of risk, such as damage from flying golf balls. If you live in a residential area near a golf course and wish to drive your own cart to the course, contact your broker to determine any additional insurance you require.

Contact BrokerLink for your hole-in-one insurance policy today!

Add a hole-in-one prize to make your tournament memorable by contacting a commercial insurance advisor at BrokerLink to get the worry-free insurance coverage you need!