Golf and country clubs have inherently unique risks. There are private, semi-private, and public clubs, all within their own categories. Even the smallest difference in a clubhouse or course can change the property and liability risks. Insurers must fully understand the clubs’ needs that they protect and analyze their specific exposures to ensure adequate coverage. However, basic coverages are always imperative for any golf course or country club.
Property
The property coverage may be your most considerable portion of a protection program. Typically, the clubhouse is the single largest structure and asset of the club’s portfolio. You and your insurer can work together to value the clubhouse and its contents properly. At a minimum, the insurance policy for the building and its contents should be reevaluated annually.
Other structures to insure may include a cart barn, refreshment stand, maintenance buildings, and any other structure that is likely to cause a fire, such as one that houses fuel, battery chargers, and chemicals.
If clubs offer storage space, such as a locker where members store their bags, they will have an additional responsibility of care, custody, and control of those items. These can be addressed by reviewing storage policies and procedures such as:
- If the space has minimal access to authorized personnel only
- What the policies are in the membership bylaws to address the responsibilities of both the club and the member
- Properly valuing what may be stored at any one time
A thorough evaluation of the policy wording can help prevent issues from arising if there is a claim.
All equipment and carts should be insured on a replacement cost basis since they are expensive. Leased equipment is dealt with differently, and the responsibility for insuring the items will be based on the leasing contract.
Business Income
The business income policy will benefit from extending to full limits to cover damage on the golf course. A public course can go downhill very quickly if there is an unplayable course. In contrast, private clubs will have significant issues if there is a loss to the clubhouse where revenue is generated. If a lawsuit was to occur, the loss of income could be challenging to measure during this time. Courses and clubs must be equipped with proper coverage limits and owners should understand that coverage costs are more than worth the expense.
Protecting the Course
The course is the most exposed asset and the main element of a club. There can be physical loss and the contingency of revenue loss if there is an unplayable course. The majority of revenues at a public course are generated from playing time.
It is advised to set your golf course limits to cover all playing surfaces, areas that are not maintained, and practice facilities. Luckily, there are no “per hole” limitations on the endorsement and adequate limits. The second coverage aspect involves the trees, plants, and shrubs on the course. You will need coverage to take care of debris removal from the course and the possible replacement of trees since mother nature is not always a friend to golf courses.
General Liability
The majority of a club’s liability exposure lies on the premises. Does the club have a restaurant, bar, tennis court, fitness room, or any other facility that may raise the risk of hazards? This will require additional underwriting information since all of these features will increase the likelihood of experiencing a claim. Keep in mind that golf course grounds inherently present a significant hazard. All pathways must be well-maintained, and all features that golfers use should be kept in good operating condition. Also, mark the course to help prevent golfers from running into hidden hazards. Tee to Green insurance is what is needed to insure your golf course or country club properly.
The Bar
If any alcohol is served on the premises, liquor liability coverage is needed in the event that an over-served person involved in an alcohol incident leads to an injury or damage either to the individual themselves, another individual or to property. If a claim is triggered in this type of scenario, it can become financially devastating for the business. Also consider the benefits of umbrella coverage extending over the primary liquor liability.
About T2 Green Insurance
T2Green Insurance provides the best customized and comprehensive protection for your club, resort, or golf management business. Our niche expertise and sole focus is insuring this class, while our industry professionals are dedicated to providing exceptional results so that you can feel confident with your coverage. T2Green offers specialized coverage options that are unique in the industry. With our exclusive program unlike anything else on the market, you can feel peace of mind with protection that is tailored to your club’s unique needs. T2Green is driven by innovation and responsiveness in both coverage solutions and customer service. We understand the challenges that are presented in varying locations and seasons to write policies for clubs from coast to coast and everywhere in between so you can operate with confidence, no matter what conditions arise. Reach us at 844-223-9005 with any questions or so we can begin tailoring a package that works best for your club.
