Insurance For Golf Courses & Resorts

Insurance Policies to Consider For Golf Courses and Country Clubs

1. Property Insurance

Ultimately, it is the property that makes a golf club or a resort the wonder that it appears to be. Hence, insuring this massive commercial property should be the first thing on a resort or golf course owner’s mind. Several specialized insurance companies around the USA specifically deal with the insurance of large commercial properties like golf clubs, resorts, 7-star hotels and malls. These companies could suggest commercial property insurance packages that are specially designed to provide full coverage and protection to your golf courses/resorts and all the other commercial properties like restaurants, bars, and clubs that have been erected on the land. 

If any harm comes to the commercial property as a result of fires, natural disasters, acts of vandalism, or acts of terrorism, the insurance company will pay for the damages. According to one article, the average cost of insuring one room at a resort is around $1,889. And although it is not stated in the receipt, guests end up paying more than half of the insurance cost for the rooms and other amenities at the resort. 

The same article further explains that the cost of insuring resorts, golf clubs and other recreational facilities increased by 20% to 30% after the 9/11 terrorist attack in 2001. And after Hurricane Katrina in 2005, there was a further 9.5% increase in the insurance costs of resorts and hotels, especially along the shores. Therefore, it can be stated that the cost of insuring your large commercial property (golf club and resort) is directly proportional to the risks involved. 

2. General Liability Insurance

All businesses, whether small or large, need general liability insurance. It is the most basic insurance coverage for small businesses that allows the business owner to save money on medical bills, repair or replacement cost and legal fees and compensations in case one of the following incidents occur as a result of the business operations:

• Bodily injury as a result of an accident like tripping, slipping, falling, fire or theft sustained by a customer or third party. 
• Damage to property (car, house, office, shop, etc.) as a result of your business operations; for example, your signboard falls on top of a customer or a guest’s parked car. 
• A lawsuit that was filed against your business on the claims of copyright infringement or wrongful advertising by a competitor, client, or customer. 

It is to be noted that general liability insurance does not provide coverage for you, your employees, your commercial property, or your commercial auto, and you will be required to purchase separate insurance policies for that. 

According to one source, on average, ski resorts in the USA spend between $350 and $700 per year on their general liability insurance premiums. But this amount is specific to an insurance claim of $ 1 million or less. Basically, the more risky your business is, the higher will be the cost of your monthly or yearly premiums. Ski resorts and beach resorts have higher risks of injuries and deaths as compared to golf clubs or indoor waterpark resorts, and therefore, the premiums for ski resorts and beach resorts will be slightly higher.

3. Worker's Compensation Insurance

This type of insurance coverage benefits both your and your employees in case an accident occurs at the golf club or resort, and your employee gets injured or dies as a result of it. Consider, for example, that there was short circuit in the basement that resulted in a fire outbreak and 2 or more of your employees received minor to moderate burns. You can file a claim for workers’ compensation and use the adjuster to pay for your employees’ medical bills and wages for the days they have been unable to show up for work due to their injuries. It can also be used to provide temporary financial support to their families. 

In most states of the USA, it is compulsory for all businesses to have workers’ compensation insurance, even if the company only has 1 employee. 

To calculate the cost of monthly premium that an employer must pay to insure his employees, the hotel and hospitality industry follows this code: 

The employer must pay $2.29 for every $100 that his employee makes for his services. Meaning that if the employee’s salary is $3,000, then the employer must pay a monthly premium of $68.7 for workers’ compensation insurance.