A golf course owner may assume their existing property and liability policies address everything from the clubhouse to the fairways. But coverage for buildings doesn’t necessarily extend to every part of the course, and a general liability policy doesn’t automatically address every club activity. So, what is golf insurance, exactly? It’s a combination of property and liability coverages selected to address the exposures associated with golf courses, country clubs, and resorts.
For insurance agents, addressing three common misconceptions can lead to more productive conversations about coverage.
Misconception #1: Property Coverage Means Buildings
A golf course’s property extends well beyond its clubhouse, pro shop, and maintenance buildings. Greens, fairways, trees, and other outdoor features are essential to the operation, but agents need to establish how the property policy treats them.
Consider damage caused by winter storms. Prolonged snow or ice cover can create conditions for snow mold and other fungal diseases that damage turf after the weather clears. While a property policy may cover storm damage to buildings, turf damage and disease-related losses may be excluded. Without insurance reimbursement, the owner could face substantial expenses to restore playing surfaces.
Following a declared disaster, eligible golf facilities may qualify for SBA disaster loans to help cover property damage that insurance doesn’t fully address. Economic Injury Disaster Loans may also help qualifying small businesses meet operating expenses during recovery.
However, these are loans that must be repaid, not substitutes for adequate insurance. Agents should confirm which outdoor features are insured and whether the policy addresses the particular causes of damage their clients may encounter.
Misconception #2: Every Liability Exposure Is Alike
An errant golf ball striking a guest presents different liability considerations than a claim involving a golf instructor or an alcohol-related incident at a club event. General liability insurance may respond to certain claims, but agents shouldn’t assume every activity falls under the same coverage.
T2Green’s available liability options include errant golf ball coverage, professional liability for golf and tennis pros, and liquor liability. Each addresses a different aspect of club operations.
When reviewing a client’s insurance, agents should establish who provides instruction, whether the club serves alcohol, and which activities involve outside vendors — then ask which activities and services its existing coverage addresses. The answers help determine which liability coverages to include in a golf insurance program and how a policy may respond to a claim.
Misconception #3: Every Business Interruption Is Covered
Having business interruption insurance doesn’t guarantee that every loss of income will qualify for reimbursement.
Suppose a fire damages a golf club’s clubhouse, forcing its restaurant and event space to close while the course remains open for play. Property insurance may address the building repairs, but what happens to the revenue from canceled events and dining operations?
Business interruption insurance may help replace lost income and pay continuing expenses following covered property damage. However, the policy’s coverage triggers, limits, waiting periods, and period of restoration determine how much the club can recover and for how long.
Agents should verify how the policy addresses interruptions to different parts of the club’s operations, rather than assuming that the presence of business interruption coverage settles the question.
Turn Assumptions Into Better Coverage Conversations
A productive insurance review starts by understanding what the golf course owner believes is covered. From there, agents can identify the relevant property and liability exposures and compare those expectations against the policy terms.
Examining potential golf insurance coverage gaps also gives agents an opportunity to address unanswered questions before a claim occurs.
T2Green Insurance specializes in coverage for golf and country clubs, resorts, and golf management companies. Contact us to discuss your client’s operations and explore available property and liability insurance options.
About T2 Green Insurance
T2Green Insurance provides comprehensive insurance that is customized to your club, resort, or golf management company, from industry professionals whose sole focus is insuring this class. We are dedicated to providing you with innovative products, underwriting expertise, and exceptional results so that your insurance needs are covered with confidence. Reach us at 844-223-9005 with any questions or so we can begin tailoring a package that works best for your club.
