I recently got that common question that you get when you meet someone that you do not know….
What do you do for a living?
If I had a dollar for everytime I told someone that I owned a Hole in One insurance company and had to explain exactly what that was, I would probably be able to retire now. Well, I could use another dollar so let me explain…
What is Hole in One Insurance
The correct name for this type of coverage is called Prize Indemnification. What this Prize indemnity insurance is indemnification insurance for a promotion or contest in which the participants are offered the chance to win valuable prizes as the result of making a hole in one an a designated hole at a charity golf tournament. Instead of the tournament or charity rewarding or paying for prize, the tournament pays a premium to an promotions company (such as NATIONWIDE Hole in One), which then reimburses the insured should a hole in one be made on the designated prize hole.
Why Purchase Hole in One Insurance for a Golf Tournament
Hole in One insurance has become a staple at the majority of golf tournaments that are held, in fact it is more unusual when you play in a tournament that does not offer any prizes on the course during the tournament. There are thousands of charity golf tournaments throughout the United States and many events offer exciting hole in one prizes such as cars or significant amounts of cash as prizes in hopes of drawing larger numbers of golfers to their events. In many cases, the tournament gets a sponsor to cover the associated costs of the coverage premium in exchange for advertisement on the signage that comes along with the coverage. Traditionally this signage is placed on the tee box of the par three hole that the prize is on with the sponsors logo on it for all the players to see. Another industry that purchases hole in one insurance are auto dealers. I was surprised at how many people that I have spoken to thought that if someone made a hole in one a tournament on the hole where the car was offered, the auto dealer just gave the vehicle away. Auto dealers have a marketing budget and use that to sponsor and pay for the hole in one insurance at various golf outings. The dealership will pay for the coverage and are then allowed to bring the car to the tournament to be displayed on the par three hole as the prize. The dealership benefits from the exposure to the golfers throughout the day from the viewing of the car in addition to the signage provided by the insurer. On certain occasions, the dealership will be allowed to send a salesman down to act as the hole in one witness on the car hole and allow him to interact with the golfers as a lead source.
Rules to Follow
There are responsibilities that the tournament director has to be aware of when utilizing hole in one insurance. There is an agreement that the director will sign that will contain many terms that they will have to adhere to in order for coverage to be binding. One of the main provisions is that the grand prize hole must have a independent, non-playing witness at the green. This is an important one as the witness will be required to complete an notarized affidavit if there is a successful hole in one. There are other very important terms as well such as making sure the prize is on the correct hole at the correct yardage assigned to the policy. It is very important to follow the terms of the agreement, especially if there is a successful hole in one as there will be a detailed investigation as well as notarized paperwork submitted by witnesses and all parties involved.
Hole in One Prize Options
One of the more popular hole in one prizes at charity golf tournaments is having a new car as the prize. Whether it be a lease or full value prize, having a brand new vehicle on the hole sure does add to the tournament and the experience, especially if someone gets lucky and make a hole in one and wins. Another equally popular prize is cold hard cash. A $10,000 coverage policy seems to be very popular and affordable, but depending on your tournaments budget, you can offer any cash prize with a value of up to $1,000,000. For those that do not want a cash or a new car, there are always trips to some of golf’s greatest destinations such as Pebble Beach, St. Andrews and even attending the Masters. We at NATIONWIDE Hole in One have recently launched a new series of prizes that we labeled “out of the box prizes“. They are non-traditional prizes that we think events that are looking for something different will really like. They can be viewed on our website or by clicking HERE.
Because we are in the business of providing indemnification coverage, one would think that golfers making hole in ones are not good for us and our business, but it is actually the complete opposite. We love when golfers make that shot of a lifetime and do it not just playing a casual round with some buddies, but at a golf tournament where there is a valuable grand prize such as a car or cash or maybe one of our “outside the box prizes such as the Mount Everest expedition. Yup, that’s correct, we have a hole in one prize that would allow the winner to attempt to climb the highest point on earth. We are always looking for feedback on some new and innovative hole in one prize ideas, so feel free to throw some ideas at us. We can insure any prize with a value of up to one million dollars.
I am off to go collect my dollar now, in fact, I may have earned two for this.
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