Insurance is rarely recognized as a value-add to a golf club, but that couldn’t be further from the truth. One thing will always remain consistent & that’s people would rather play from the fairway (financial security) than suffer in the hazard (financial ruin).
Cover vs Premium
It’s a balance no doubt & in the current insurance market (believe it or not) golf clubs are winning. Always look at the big picture, what’s the worst case scenario? & work your way back from there.
Don’t forget, you get what you pay for ALWAYS.
Too many cooks spoil the broth. As General Manager of a golf facility, your appointment didn’t come about by chance so having the flexibility to make your own decision how the club is insured should start & finish with you. Back yourself!
The severity of a claim will always determine the service levels required but in any case, make an action plan in the beginning & make your broker accountable through to an acceptable outcome.
Insurance trends expected in 2017
Greens, Bunkers & Landscaping Insurance
A golf club isn’t a golf club without its course. Unprecedented catastrophe claim events in the past year have seen a number of insurers capping cover for playing surfaces. Be on alert & consult your broker on this each year!
Cyber Protection Insurance
Cyber security is a growing concern for golf clubs. CPI protects all elements of your IT infrastructure such as – hardware, software, networks and facilities against a cyber-event & is a business risk worth mitigating.
Environmental Liability Insurance
ELI cover protects against ‘gradual’ and is not limited to ‘sudden and unforeseen’ pollution events as is the case with the majority of market offerings (see Case Study #3 below).
My top 5 musts when insuring your golf club
- Engage a broker/advisor. You wouldn’t attempt to rewire your own home, so don’t try to navigate the insurance minefield. Leave it up to a qualified professional!
- Take the time to understand your insurance program. Once prepared your broker should be able to demonstrate the strengths & any deficiencies in your cover.
- Annually review your sums insured. Underinsurance is a common issue that leaves many out of pocket. I suggest completing systematic property valuations, inventory stocktakes & financial audits to best safeguard your business.
- Enquire about ways to reduce your premium WITHOUT sacrificing cover. Consider higher excesses on certain insurances or implement risk management strategies to demonstrate to your insurer you present a reduced risk.
- Don’t be afraid to make a claim, it’s why you have insurance!
“It won’t happen to me”…But what if it does?!
Case Study #1 Nelson Bay Golf Club, Australia
A fire in September 2015 all but demolished this iconic Australian club of 55 years. Fast forward to December 2016 & rebuilding efforts are far from complete.
Case Study #2 Jacks Point Golf Club, New Zealand
A spot fire turns into an inferno at this picturesque golf club. Events due to be held at the clubhouse where canceled for the next 12 months whilst rebuilding.
Case Study #3 Warringah Golf Club, Australia
A Sydney golf club was yesterday ordered to pay $600,000 for its role in an environmental disaster that killed more than 10,000 fish, as well as numerous ducks and other wildlife.
Case Study # 4 Gardens Park Golf Links, Australia
Tree falls on course killing a man. Does Liability lie with the golf club or the government who own the land? Needless to say, both would have been quick to speak to their insurance advisor.