Running a golf club is complicated enough, but with risks ranging from extreme weather to rising repair and replacement costs, having the right insurance in place remains as important as ever.
Storm damage, frozen pipes, course closures and extreme heat can affect clubs at different times of the year. Preparing for these risks in advance can help reduce their impact.
But the reality is that risk should be a year-round consideration. Regularly reviewing your insurance can also help make sure your cover continues to reflect your club, its property and the risks it faces.
When costs are under pressure, keeping insurance values up to date becomes even more important.
If the cost of materials and equipment increases, it’s vital that the amount insured is high enough to replace lost or damaged items. Under-insurance can be serious for golf clubs that suffer damage but then find the sum insured does not reflect the actual cost of a rebuild.
Regular conversations with your insurance broker can help you check that your policy and sums insured continue to reflect your club’s needs.
Things to consider when reviewing your policy:
- Have you included the value of all property and machinery on site? Don’t forget items such as irrigation systems, including control panels that could be vulnerable to lightning or storm damage.
- Consider the wider impact of a storm, fire or flood, includingdamage to fairways, tees, greens, and equipment as well as damage to all buildings on site, not just the clubhouse. Remember areas such as car parks too.
- Weather-related events could also lead to the cancellation of clubhouse events, resulting in loss of income.
- Factor in the potential for club closure due to storm, fire, or flood damage – and the cost to the business.
Additional risks to consider
- Accidents or damage due to greenkeeper error
- Theft from lockers in the clubhouse
- Theft of equipment
- Burglary
- Employees sustaining injuries at work
- Faulty equipment
- Accidents suffered by members or guests on site and the potential for liability claims
- Business interruption due to burst pipes or roof leaks
- The impact of rising costs on the business, including energy costs and supply chain costs
A robust, regularly reviewed risk assessment can help you identify changing exposures, take action early and reduce the likelihood of incidents.
Keeping pace with repair and replacement costs
Repair, replacement and rebuild costs can change over time, so make sure your sums insured keep pace.
- Remember that the cost of rebuilding is the figure you need to consider rather than the market value of a property
- Don’t underestimate the cost of repairs or of replacing items like-for-like. Beware of ‘average’ costings which may not reflect the true value.
- Seek advice from your insurance broker about appropriate sums insured
Howden’s specialist golf team combines years of sector experience with tailored insurance solutions, helping clubs understand their risks and put appropriate financial protection in place.
To find out more about protecting your golf club, or for support reviewing insurance needs, get in touch with Howden.
