Hole-In-One Insurance and Prize Indemnity Insurance
Hole-in-One insurance is purchased by golf tournament hosts or tournament sponsors. The coverage reimburses the named insured (hole sponsor) for the cost of awarding a hole-in-one prize.
The first person to score a hole-in-one on a predetermined hole will be awarded a (often lucrative) prize by the hole sponsor. For example, if a tournament is being sponsored by a car dealership the hole-in-one prize may be a new car. The car wrapped with a bow, displaying the dealership name and logo is often seen parked along the tee box making for a fantastic advertising opportunity.
To afford expensive prizes like a car or a trip to a major sporting event, tournament sponsors purchase hole-in-one insurance to protect themselves from having to pay for the prize out of their own pockets.
According to USA Today, the odds of getting a hole-in-one on a par 3 is 12,500 to 1 for amateur players and 7,500 to 1 for professional players.
Underwriting Criteria for Hole-in-One Insurance
Insurance premiums for hole-in-one insurance can range, but variables that affect the cost are:
- Hole Yardage
- Number of Professional Participants
- Number of Amateur Participants
- Number of Rounds
- Prize Value
The insurance contract will contain rules, such as:
- Is a spotter to be stationed at the hole, if so, is there a minimum age
- Is the honour system used to confirm that the hole-in-one was achieve legitimately
- Some insurance companies will want to be notified within three (3) days of a possible winner
Sometimes the hole-in-one winners playing partner(s) will also receive a prize, such as the prize benefit certificate provided by the DealerSure insurance program to participating auto dealerships.
Other Types of Prize Indemnity Insurance
Television game shows will buy prize indemnity insurance to offset the cost of large prize winnings. Coverage is available for half court basketball shots, blue line ice hockey shots and football field goal kicks.
To learn more about hole-in-one and prize indemnity insurance, contact an ALIGNED Advocate.
We can provide expert guidance about insurance and risk management best practices for your organization. Talk to one of our advocates today about how we can help you secure the best products, services and insurance solutions for your business.
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