The National Golf Foundation estimates that 26.6 million Americans played at golf courses in 2023. That is approximately 1 million more players than in 2022, leading to the most significant year-to-year increase since 2001.
This growth allows golf course owners and investors to scale their businesses but also increases the risk of liability claims.
We will explain the golf course insurance necessary to mitigate the risk when serving golfers.
General Liability Golf Course Insurance
Golfers are expected to “exercise ordinary care” when playing on Illinois golf courses. They may be held liable for injuries if they fail to do so.
This ruling protects golf courses from some legal claims, but not all. Injured parties can file legal claims against the golf course if evidence shows the injury was due to negligence on the part of the business.
For example, a player gets injured due to slipping and falling on water in the clubhouse or from a ball in a poorly managed driving range. The course may be liable for medical bills and other associated costs in these instances.
General liability insurance covers claims related to property damage and injuries suffered by customers and other third parties. Covered costs include legal fees, medical bills, and long-term care needs.
Some golf courses require a basic general liability policy, while others should add errant ball coverage. Discussing the course’s risks and needs with an insurance agent to select the appropriate insurance coverage is important.
Liquor Liability Insurance
Illinois golfers drink an average of 3.9 beers per 18-holes, and some become intoxicated on the course. The golf course serving alcohol can be held liable if an intoxicated customer damages property or injures another person, even after leaving the golf course.
Liquor liability insurance covers claims against the course when this happens.
Prize Indemnity Insurance
Golf courses often host special events that include contests with prizes. Often, these are called “hole-in-one” contests, and while the odds of winning are low, the prize value is enticing.
The odds of an average golfer making a hole-in-one are 12,000 to 1, and prizes are often $10,000 or more for those who succeed.
These contests bring many golfers to the course but create problems for owners and management if someone wins the prize. Golf courses must pay out immediately, causing them to lose much, if not all, of the money earned at the event.
Managers and owners avoid the risk by purchasing prize indemnity golf course insurance. The premium is generally 3-15% of the stated value of the prize, and the insurance pays out the full prize amount if someone wins.
Insured parties can also work with the insurance company when setting contest rules and guidelines.
Golf Course Herbicide, Pesticide, and Pollution Coverage
Golf course managers must ensure the grounds are adequately maintained and alluring to golfers. That often means they use herbicides and pesticides throughout the property.
Improperly applied herbicides and pesticides can pollute the air and ground, harming employees, customers, and third parties.
Herbicide, pesticide, and pollution coverage protects golf course owners and managers from this risk. It pays out claims if anyone becomes ill or suffers injuries due to chemicals used to treat the grounds.
Golf Pro Professional Liability Insurance
Professional golfers often provide lessons for a fee at golf courses. Even the most skilled professionals can make mistakes when instructing clients.
For instance, a golf pro may teach a client improper form, leading to a knee or shoulder injury. Golf pro liability insurance protects the course in case of negligence, injuries, errors, or omissions.
As with other types of golf course insurance, it pays for all related expenses, including medical bills and legal fees related to the covered event.
Cyber Liability Coverage
Golf may be an outdoor activity, but business is also conducted online. Players purchase memberships, reserve tee times, and pay for rounds via the course’s website.
Cybercriminals make careers out of hacking websites and stealing customer information. Still, golf course owners can protect themselves with cyber liability coverage. Cyber liability insurance pays all fees related to cyber-attacks.
Based on the plan, the insurance company may also notify the affected customers, recover data, repair computer systems, and restore customers’ identities. With such a policy, golf course owners and managers can avoid reputation damage after a cyberattack.
Get a Customized Quote for Golf Course Insurance from Pro Insurance Group
Pro Insurance Group specializes in customized golf course insurance policies. Contact Pro Insurance Group today to discuss how the right policy will protect you and the course from liability claims.
You can also enhance your policy with additional coverage, such as business interruption and commercial property insurance. Reach out today to build a policy and receive a quote.