Running a golf club is complicated enough but a rising number of risks, from climate change to pandemic hangover and a cost-of-living crisis, mean that having the correct insurance in place has never been so important today.
By GCMA Partner Howden
As spring is here, golf club owners and managers are reminded to consider about property and business insurance. Although the risks of storm damage, flooding, frozen pipes, and course closures are typically highest in winter, it’s important to prepare for these potential challenges well in advance.
But the reality is that risk should be a year-round consideration for all sports clubs and there are many things to consider in all seasons.
In fact, in a world that seems to change so fast, reviewing your insurance policy regularly to ensure it is still fit for purpose is crucial.
There may be a temptation for some businesses in the sector to cut corners at a time when customers are suffering in the economic crisis and the cost of just about everything – from energy to repairs and from food to interest rates seems to be rising.
But in many ways that focus should be turned on its head. The greater the risk environment, the more care you should take to ensure your business, and your property, is adequately insured.
If the cost of materials and equipment is increasing, for instance, then it’s vital that the amount insured in case of theft or storm damage is high enough to replace any lost or damaged items.
Under-insurance can be extremely serious for golf clubs which suffer damage but then find the sum insured does not reflect the actual cost of a rebuild.
It is clear that climate change is leading to an increased risk of extreme weather events, including storms and floods in winter, which can linger into spring, as well as extreme heat in the summer.
Now is the perfect time to talk to your insurance broker or provider to consider whether your current policy is fit for purpose and how a changing world could impact your cover.
Things to consider when reviewing your policy:
- Have you factored in the value of all items of property on site, including all machinery, when it comes to your property insurance? Don’t forget items such as irrigation systems, which could suffer damage in a winter storm with the main damage in terms of claims has been seen to come from lightening damage to irrigation system control panels.
- Have you considered every cost impact that a storm, fire, or flood could have on your club? Include damage to fairways, tees, greens, and equipment as well as damage to all buildings on site, not just the clubhouse. Even the car park.
- Don’t forget that weather-related events could also lead to cancellation of events staged in the clubhouse, 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.
Things to consider when reviewing your policy:
- Have you factored in the value of all items of property on site, including all machinery, when it comes to your property insurance? Don’t forget items such as irrigation systems, which could suffer damage in a winter storm with the main damage in terms of claims has been seen to come from lightening damage to irrigation system control panels.
- Have you considered every cost impact that a storm, fire, or flood could have on your club? Include damage to fairways, tees, greens, and equipment as well as damage to all buildings on site, not just the clubhouse. Even the car park.
- Don’t forget that weather-related events could also lead to cancellation of events staged in the clubhouse, 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.
What is most important is that a robust risk assessment is undertaken and reviewed regularly. Without one, a club becomes increasingly vulnerable to litigation and claims of negligence if anything goes wrong.
Mitigating the impact of inflation
Considering the real time costs of repairs and replacement, at a time when inflation is rising fast, is also a factor when weighing up insurance cover.
- Remember that the cost of rebuilding is the figure you need to consider rather than 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 broker around the value of items insured
Howden’s golf club products are tailored especially for golf clubs based on many years of experience in the sector.
It can include bespoke golf club wordings which are underwritten by A-rated insurers – and provides access to a specialist golf team with wide expertise in the industry.
We insure more than 350 golf clubs, and help arrange insurance for large scale events.
Should you have any further questions please get in touch by email [email protected] .
By Mark Shanley
