While there are unique protections every golf course operator should consider, such as liquor liability and tee-to-green coverage, Sentry Insurance has identified trends that you may want to consider in 2023 to further help protect your club against large, unexpected losses.
Severe weather events are all too common today. Inflation and supply chain issues, too. There are steps you can take, however, to mitigate risks and help your club recover should it suffer a loss. Cost-effective steps can help protect your club and members.
As an underwriter, I’m often responsible for helping golf courses evaluate and mitigate their risks. It’s an industry I’ve always been passionate about. In fact, Sentry, the organization I work for, owns its own course, SentryWorld, which will host the 43rd U.S. Senior Open this June. It’s given me an up-close look at the daily risks and overall needs facing golf course owners and managers.
While there are unique protections every golf course operator should consider, such as liquor liability and tee-to-green coverage, I’ve identified trends that you may want to consider in 2023 to further help protect your club against large, unexpected losses.
Defend Against Inflation, Delays, and Lost Income
If your golf course grounds—from tee to greens—equipment, or buildings were to suffer storm damage, you may not have sufficient coverage to help you repair, rebuild, or replace your equipment and facilities.
The values your insurer placed on buildings and equipment even just a year ago may not be enough to adequately cover damage to your property with inflationary pressures—the highest we’ve seen in decades.
And while the supply chain recovers, material shortages still exist, which means it could take weeks and often months longer to become fully operational in the event of a loss. There are two adjustments, however, you can make to your policy to help protect your club from inflation and lost revenue:
- Guard against inflation: Add an inflation guard provision to automatically increase the value of your insured property to compensate for rising cost of materials throughout your policy’s term.
- Protect against delays and lost revenue: If your club suffers a catastrophic loss, it may take longer to get it fully operational due to supply chain delays. While your club recovers, you’ll need to continue paying your employees, bills, and other expenses. While you may already have business income coverage to protect your club from lost revenue, talk with your insurer to make sure you have adequate coverage to account for extended delays this year.
Protect Your Clubs’ Valuable Data
The frequency of cyber attacks continues to increase across the globe and no industry is immune. Golf course operators, like in any other business, need to have a robust data protection program in place. Ransomware attacks continue to be the leading loss driver within the cyber liability line of business.
Clubs—especially private ones—house personal data of employees, members, and suppliers. Have a thorough data protection plan in place, and train employees to recognize the risks of a data breach.
Combining these risk management practices with cyber liability coverage is quickly becoming critical to every club’s longevity.
Be Proactive, Take the Next Steps
There are coverages unique to the golf course industry. Still, the trends and tips I’ve shared here are relevant across all industries—and they’re often overlooked. Have a conversation with your insurer and local experts to address your specific circumstances and use these tips as a guide.
Making a few updates to your insurance program can provide you peace of mind that your club is protected—leaving you with more time to focus on your operation and members. Best of luck in the year ahead.
About the author: Brett Hoopingarner is the Director of Underwriting for Sentry Insurance. Sentry provides property, casualty, life insurance, and retirement products to the golf course industry. Learn more at sentry.com.
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