What Is Hole In One Insurance and How Does It Work?

What Is Hole in One Insurance and How Does It Work?

When you’re planning a charity golf tournament or promotional event for your company, a hole in one prize is a great way to attract participants. The prize not only drums up business but also adds an element of competition, making the event more fun for everyone involved.

Making a hole in one already gives someone bragging rights. After all, the average length for a hole in one is 147 yards, and the odds of making one is one in 3500. Throw in a cash prize, and you’ve given people all the reason they need to show up and attempt to sink one — plus all the reason you need to insure the event with hole in one insurance.

What Is Hole in One Insurance?

Hole in one insurance is a type of prize indemnity policy that covers the cost of a hole in one prize payout at a golf event or tournament offered by a charity, business, or facility. The insurance company assumes the risk of paying the prize if someone gets lucky enough to win. You don’t have to touch the proceeds from the event to keep your word and pay the winner.

How Hole in One Insurance Works

When you purchase hole in one insurance, you pay a contract fee for a policy to cover the event. This custom fee takes into account factors like the total value of the prizes, the number of golfers playing in the event, and the skill level required to make the shot.

For example, an event with 50 players has a lower chance of sporting a winner than an event with 1,000 players. Likewise, players who are 150 yards away from the hole have a higher chance of scoring than players who are 175 yards away from the hole. In general, the greater the chance of someone winning, the higher the fee. If someone does score a hole in one, the insurer — not you — pays the grand prize after verifying the validity of the shot.

Why You Would Want Hole in One Insurance

A hole in one prize will attract more participants to your event. More participants mean more money. Doubling attendance also doubles your profit and the amount of money you get to donate to your charity of choice.

Hole in one insurance cost is nominal, especially compared to the cost of paying out a big prize. If you’re raising money for a charity, having this policy ensures you’ll be able to give all of the proceeds to the organization instead of what’s left over. If you’re promoting a hole in one contest as part of a marketing campaign, you don’t have to waste your entire budget covering the cost of the grand prize.

Benefits of Hole in One Insurance

In many ways, hole in one insurance itself is a benefit, and it’s worth your time to explore how it works and what coverages are available (you can learn more here). It protects your financial interest and gives you the freedom to offer a prize big enough to attract the public to your event. Here’s a closer look at what a hole in one policy does for you.

1. You make more money at the event.

Whether hosting a charity event or offering a promotion to attract customers, you want people to show up and participate. More people means more money, but it also increases the odds someone will win.

Hole in one insurance companies shoulder the cost of a prize that could easily wipe out all of the proceeds you planned to give to a non-profit organization or your promotions budget for the year. When you have a policy in place, you can confidently proceed with the event, knowing that you won’t lose everything to a lucky winner.

2. You can attract more sponsors.

Sponsors play an important role in a charity golf event. They help defray some of the costs associated with hosting the event and get valuable publicity. It’s a win-win for your organization and the sponsor.

Hole in one insurance lets sponsors reap the benefits of sponsorship — having the company name printed on the promotional materials and associated with the charity group — without taking on the risk of paying the prize.

3. Hole in one insurance is affordable.

The nominal fee to insure a prize is more affordable than the cost of paying out the big prize. Although the risk of someone actually making a hole in one is low, people do make them. After all, no one would try if there wasn’t at least a chance of winning!

A single winner can completely wipe out your profit if the grand prize is big enough. Imagine what happens if you have more than one winner — all your hard work putting together the event may be for naught.

4. Hole in one insurance is customizable.

Each event is a unique experience. Depending on the organization you’re raising money for, the location, and the number of prizes you’re offering, your list of attendees can vary greatly. That’s why you need coverage that adapts to your needs.

Hole in one insurance is completely customizable. You can adjust your coverage based on the specific needs of the event, like the number of prize holes and the dollar amount of each prize you’re prepared to give away. You may even find that your sponsors want coverage to help them mitigate their risk.

Get a customized quote for your event.

Whether you opt for a million-dollar hole in one insurance policy or a smaller amount, the cost is usually well worth your peace of mind, knowing you can pay your grand prize winners. You’ll have the freedom to focus on creating a winning event and the resources to protect your rewards. Find out how ESP can help you get this extra layer of protection and get a quote today.

Go Ahead — We’ve Got You Covered.