Company insurance is intended to safeguard the financial assets of a business owner and is a vital investment for a golf course.
This article will discuss the primary insurance coverage for golf courses, general liability insurance, as well as additional policies that are appropriate for this industry.
Golf Course General Liability Insurance
Every firm, regardless of sector, has risks that should be insured. General liability insurance is the most frequent and comprehensive form of coverage that company owners purchase.
General liability insurance covers the following risks:
Physical harm
Damage to property
Medical expenses
Legal defence and decision
Personal and commercial harm
While general liability insurance is not legally needed for companies, operating without it is exceedingly dangerous. If your company is sued, you might face costs in the hundreds of thousands of dollars (or more). The only way to avoid this sort of catastrophe from destroying your organisation is to have an adequate general liability insurance coverage in place to assist pay for these losses.
COMMON SITUATIONS FOR WHICH GENERAL LIABILITY INSURANCE MAY PROVIDE COVERAGE FOR A GOLF COURSE
Example 1: One of your caddies leans a player’s clubs against his vehicle, causing them to topple over as another car passes by. The automobile collides with and destroys the clubs. The customer asks that your company pay for their replacement. This would be covered by your general liability insurance coverage.
Example 2: A piece of a sidewalk washed away during the previous night’s storm. A visitor to your course fails to see the damage and falls, breaking her wrist. She requests that your firm cover the cost of her medical care. Her medical expenditures would most likely be covered by a general liability insurance.
Example 3: A golf ball strikes one of your course’s players in the eye, causing significant injury. He files a lawsuit against your golf facility for monetary damages. While you may be exonerated in the end, since participants accept a certain degree of risk as part of their participation, you must still defend yourself legally. Your general liability insurance would cover your legal fees, as well as the cost of a settlement if one is required.
Of course, this is not an entire list of risks covered by a general liability insurance policy, and certain situations may result in a specific peril not being covered. To minimise coverage gaps, it’s always better to speak with your agent about the terms of your policy.
General Liability Insurance Cost
Golf facilities in the United States pay an average of $400 to $1,100 per year for $1 million in general liability insurance.
The cost of your coverage will be determined by a number of variables. Among them are your:
Location
Deductible
Employees’ number
Per-occurrence restriction
The overall aggregate limit
You may be able to get general liability insurance at a lower cost if you buy it as part of a business owner’s policy (BOP) rather than as a separate policy. A business interruption policy (BOP) is a more complete option that covers numerous types of coverage, such as business interruption and property insurance.
Other Types of Coverage Required by Golf Courses
While general liability insurance is the most crucial, there are various different types of coverage to be aware of. Other forms of insurance that all golf facilities should have are as follows:
Insurance for Workers’ Compensation
If you have employees, most states require you to have workers’ compensation insurance. Workers’ compensation will pay for medical treatment if an employee is injured while doing job-related responsibilities. It will also assist in compensating the employee for missing earnings as they heal from their ailments.
Insurance for Commercial Property
You’ve probably spent a lot of money on the equipment and materials you’ll need to manage your golf course. It would be costly to replace if you lost most or all of your business property. However, if you have sufficient commercial property coverage, your insurer will assist you in covering the cost of repairing your property if it is destroyed in a covered catastrophe, such as a fire.
Coverage Options for Some Golf Courses
In addition to the insurance listed above, your golf course may need other forms of coverage based on particular elements of your business. Some of them may not apply to you, so be sure to ask your agent whether policies are appropriate for your company.
Umbrella Insurance for Businesses
Although the general liability insurance you have is enough in most cases, there are situations when the limitations of a general liability insurance policy might be surpassed, such as if you lose a large lawsuit. A business umbrella insurance coverage is intended to supplement your general liability insurance. When the general liability insurance limitations are reached, the umbrella coverage kicks in.
Insurance for Commercial Vehicles
A commercial car coverage is required if you have a vehicle that is mostly used for business reasons. Most states need commercial auto insurance for company cars. You will be protected in the case of an accident with your coverage. The coverage will cover the cost of repairing or replacing your car, as well as any injuries suffered in an accident. It will also compensate for other people’s losses and injuries if you are at fault in an accident.
Additional Security Measures for Your Company
Although investing in company insurance is simple (and necessary), it should not be your first line of defence. Yes, insurance will reimburse your company for cash losses incurred as a result of an occurrence, but it is much preferable to avoid losses altogether.
With this in mind, here are a few steps you can take to better secure your company:
Make use of legally binding contracts and other business agreements. (We provide free templates for several of the most often used legal forms.)
To safeguard your personal assets, form a limited liability company (LLC) or a corporation. (To discover how to incorporate an LLC or company in your state, see our step-by-step tutorials.)
Keep your company licences up to date.
Streamline the internal procedures of your company. This will eliminate unneeded variables from routine activities and establish a secure, consistent environment in which to do business.
If your company is an LLC, you should check into LLC insurance.