Summer is here…. well, it is officially here on June 21, but you get the drift. The trees are green with leaves, the grass is growing, and most of us have already experienced that first thunderstorm. Another sure sign that summer has arrived is the long days and the full golf courses.
Speaking of golf, I am sure many of you have attended a golf tournament, a men’s or ladies night, of a community fundraising tournament in your own home town. These events can be a great time to get together with others, network, and to do something good for a local cause while having some fun! If you are like me and have attended one of these events, you will have likely seen a hole on the course with a large cash prize attached to it should you get a hole in one. These holes can be a lot of fun to play, and they definitely have a way of getting people excited with the prospect of that perfect hit that lands them the prize.
Have you ever stopped to think about how these prizes work and who funds the cash should someone win? I know I did!
So, here’s the inside 411 scoop on these hole in one prizes. The very simple explanation for this is that the hold is insured against a hole in one from occurring. There are a couple of insurance companies that have developed a product that lays out certain criteria for the hole in one to be obtained. Some of the criteria involves minimum yardage of the hole, having a spotter located at the hole for verification of the prize, and they will verify that tiger woods isn’t showing up to your tournament as this is a product designed for novice golfers.
Should someone get a hole in one, they have essentially triggered a peril on the policy. This is the same concept as someone having a fire in their home. The policy responds to the event that happened for which coverage was provided. So, someone hits a hole in one, the spotter verifies the event, then there is a claim form that is submitted to the insurance company for payment of claim.
The nice thing about these hole in one prizes is that they are relatively affordable to purchase. The average $15,000 prize at a hole no less than 145 yards with under 100 golfers runs a cost of about $130. The premium is paid, the golfers golf, and the prize is on the table for that person that just hits the ball just right.
So in closing, if your community is hosting an event at your local course, and you are looking for a way to “make things interesting” talk to your broker about a hole in one product. It is a very simple thing to obtain, and you might just become a new local hero for sponsoring a prize!