Picture this: you organize a million-dollar hole-in-one shootout to promote your golf tournament, and a lucky or skilled golfer makes the ace. For the lucky golfer, it would be a memorable and million-dollar moment. But not for you if you don’t have hole-in-one insurance.
Without golf tournament prize insurance, you’ll wish to put the genie back in the bottle when signing that big fat check for the prize amount. Yet, this shouldn’t be the case. Just as golfers love to take it easy and grin on the green, you should equally enjoy your golf event without worrying about paying the prize money from your pockets.
And this is where hole-in-one insurance saves the day. To that end, let’s define hole-in-one insurance, find out how it works, why you need it in your golf tournament, how much it’ll cost you, and how to get it.
What is Hole-In-One Insurance?
This is a type of event insurance that golf tournament sponsors or organizers purchase to cover the cost of paying lavish prize amounts to participating golfers who make a hole-in-one. Hole-in-one insurance is also known as prize indemnity or contest hole insurance.
How Does It Work?
Contest hole insurance operates more or less the same as other insurance policies. You pay a golf event insurance provider like Torian Insurance a premium to cover the prize amount you’ve promised to participants in your golf tournament who ace a specified hole. This way, you won’t risk paying hefty prize amounts to golfers who make a hole-in-one — if there is one.
Here’s a case in point:
Say you have 50 golfers in your event playing the 165-yard Hole 7 with a $20k prize. Once you contact Torian Insurance, we’ll calculate the premium per golfer, which you or your sponsor pays to us. In turn, if any golfer in your tournament makes a hole-in-one, we’ll cut them a check for the $20k prize.
Ideally, golf insurance providers will want to confirm some proof points on-site — such as the tee position and the yardage — before paying out the prize money. They may also require a signed affidavit from a non-participant in the golf event who witnessed the hole-in-one.
Factors Influencing the Cost of Hole-In-One Insurance
Golf tournament insurance cost is subject to these three main factors:
- The cash value of the promised hole-in-one prize
- The number of golfers in your golf tournament
- The yardage of the target hole you want to insure
Golf event insurance providers rely on state-of-the-art algorithms that help them calculate the odds and risk before setting a premium amount. They may also consider additional factors such as the Handicap Index of the participating golfers.
Benefits of Having Hole-In-One Coverage for Your Golf Event
These are the perks of having prize indemnity insurance for your high-profile golf tournament.
Match the Deserved Accolades of a Hole-In-One Feat
The National Hole-in-One Registry says only 1-2 % of golfers sink a hole-in-one each year. It adds that a hole-in-one is made only once every 3,500 rounds out of the 450 million rounds played annually. These stats echo what the golf community knows: an ace is an incredible once-in-a-lifetime feat worth all the grandeur.
Thus, your prize amount must match the monumental achievement of scoring an ace. When you have hole-in-one coverage, you can offer lavish prizes like super-luxury cars or all-inclusive vacation packages, knowing your insurance will pay for them.
Helps Publicize Your Golf Event
The bigger the prize, the bigger the tournament. To attract good press and more corporate sponsors, you must first attract renowned golfers — the kind who’ll attempt an albatross or a condor in stride. Having such high-caliber golfers in your tournament will publicize your event as there’ll be a higher chance one of them will score a hole-in-one.
When you have hole-in-one insurance, you’ll have the depth to up the ante and motivate top golfers to grace your tournament. And if you decide to go all out and host a million-dollar shootout, your insurance provider will have your back.
The more buzz your golf event generates, the more sponsors and press coverage you’ll attract. Hole-in-one coverage lets you up the stakes in your golf tournament minus the risk of paying hefty prize amounts.
Golf Tournament Prize Insurance Gives You Peace of Mind
Even if you have deep pockets, you can quickly burn your fingers if Lady Luck isn’t on your side. Suppose two club-happy golfers score an ace in your competition with $100k prize money on day one.
You would certainly have your fingers crossed for the rest of the tournament because cutting multiple $100k checks isn’t as motivating. Conversely, when you have hole-in-one coverage, you’ll rest easy even if a couple of players sink a hole-in-one on the same day. Phew!
The History of Hole-In-One Insurance — A Trip Down Memory Lane
According to the hustle, hole-in-one insurance providers first came around in 1933. But it wasn’t until the 1990s that golf event organizers adopted it in mass. Before then, hole-in-one insurance was primarily used by individual golfers or golf and country clubs.
They used hole-in-one insurance to cover the costs they would incur at the 19th hole (i.e. buying drinks, food, and gifts for fellow golfers at the clubhouse) in the rare chance they aced a hole-in-one.
In the early 1990s, there were only a handful of hole-in-one insurance providers, commanding a market value of $220 million. Today, there are multiple golf tournament insurance providers around the country.
Trust Torian Insurance for Your Hole-In-One Insurance Coverage
If you’re organizing a golf event in Evansville, Kentucky, Illinois, Newburgh, or Indiana, Torian Insurance is your go-to hole-in-one insurance provider. You only need to contact us before you organize your golf tournament and share requisite details, like the number of golf participants, the promised prize’s cash value, the contest hole’s yardage, and the rules governing the tee shot. At Torian Insurance, we customize hole-in-one insurance policies to meet the specific needs of your golf event. With Torian Insurance in your corner, your golf tournament will be a win-win for you and the participating golfers who score a hole-in-one.