Hole-in-one Insurance: is it Really Necessary?

A hole-in-one in golf is certainly amongst the rarest but also amongst the most fantastic plays possible in sports. A golfer swings his club at a little white ball and sends it flying across a distance of over a hundred yards precisely into a little hole marked with a flag. It's a spectacular achievement, a moment of miraculous brilliance which is sure to be etched in the memories of every viewer.

But a hole-in-one is not only remarkable as a feat which assures the player a place in the record books; it also draws huge sums as reward. Anyone achieving this great feat during a tournament is likely to win a special prize specifically allotted and ear marked for such an astonishing feat. Most golf tournaments around the world have fabulous rewards for the golfer who accomplish hitting the ball in with just one shot, ranging from thousands of dollars in prize money to a brand new car.

Although the likelihood of somebody hitting the ball in the hole with just one swing in the golf tournament you have organized are not very high, still as an organizer you would do well to factor in the odd chance that such a thing might just happen. And if you are unprepared for the eventuality, can you, as the organizer of the tournament, imagine writing out a check for $50,000 to the player who managed that one lucky shot? The possibility is mind boggling but very real.

So when you set out to organize a golf tournament for charity or any other non-profit cause, you should always consider taking out a hole-in-one insurance. Strange as it may appear, insurance to secure you if and when a player hits a hole-in-one during your tournament actually exists. Several insurance companies have schemes to cover the range of risks related to your tournament prizes.

So then, how does the hole-in-one insurance work and what do you have to do for it?

Prior to the tournament being held, the tournament organizer has to contact an insurance company offering golf tournament insurance. He has to inform the company how much the prize money for a hole-in-one is. For instance, for a prize of $20,000 in cash for anyone hitting a hole-in-one, the insurance company could agree to secure the risk against a one time investment of as low as $350. In such a case, if during the tournament, three players hit a hole-in-one during the tournament, each of them is entitled to a $20,000 checks. All that the organizer has to do then is simply turn to the insurance company and place a demand for the money. The insurance company is bound to write out three checks for $20,000 each and hand them over. The organizer distributes the prizes as promised without having to worry about anything or without losing any sleep over financial ruin.

And why would a tournament organizer ever run such a risk and take up all the hassle of organizing a tournament in the first place? The answer is publicity, plain and simple. Not only the publicity from an event, or from fund raising for a noble cause, but more so the sensational media coverage from someone winning the $1 million dollar prize money or a new car at your tournament. The offered prize money is itself the single biggest factor that draws players and crowds, and ensures regular participation in, and follow up of for your tournament year after year. The possibility of winning the prize attracts the top players, and this in turn attracts the media to interview the winners and cover the event. All this means that your business grows by the simple step of taking insurance coverage against the nominal fee that a hole-in-one insurance company charges.