Why Every Golf Course Needs Comprehensive Insurance

A golf ball sits on a green lawn. The sun is setting in the distance.

Whether you own a golf course, country club, or sports center, you know that your facility is more than just a leisure space—it’s a substantial investment.

With the varied risks associated with property damage, liability issues, and the specialized nature of your equipment and operations, insurance is key to safeguarding your financial stability; it ensures that unforeseen events don’t jeopardize your business or its reputation.

In this blog, we’ll cover the main components of golf insurance, recommended additional coverage, and the factors that influence the overall cost.

What Does Golf Insurance Usually Cover?

There are several main components you should have in your golf insurance program. These include:

Equipment Coverage: This protects against loss or damage to valuable golfing equipment.
Personal Liability: Liability is a required insurance component. Personal liability specifically covers legal liabilities arising from injuries or property damage caused by golf course operations.
Personal Accident: This required coverage offers protection if guests or employees are injured on site.
Hole-in-One Insurance: Although not required, we recommend that all golf courses, especially those hosting tournaments, have this coverage. It’s designed for prize indemnification in hole-in-one contests, so the insurance covers the cost of the prize if a golfer successfully makes the shot.
Golf Cart Coverage: This is essential for any course using golf carts, as it covers damage to carts and liability issues arising from their use.
Loss of Membership Fees: This coverage helps mitigate financial losses if an unexpected situation leads to a decrease in membership.
Travel Insurance: Travel insurance is important for golf courses involved in organizing trips and tours because it covers travel-related risks, including damage to golf equipment, trip cancellations or interruptions, and emergency medical expenses.

Other Recommended Coverage

A golf cart sits on a golf course. There is no driver in the cart.

Beyond the standard coverage listed above, there are other types of coverage you should consider adding to your plan based on the type of facility you run and your daily operations:

Pesticides & Herbicides Insurance: This type of coverage is only necessary if you or a lawn care company you’ve hired treat the golf course with chemicals. This coverage provides protection against liabilities that may arise from the potential harm these chemicals can cause to employees, customers, and the environment and ensures compliance with industry regulations.
Storage Tank Coverage: This coverage is important if you have an underground storage tank for storing lawn treatment chemicals or fuel/oil for equipment because it protects against environmental fallout from leaks or damages to these tasks, which can lead to significant cleanup expenses.
Errant Golf Ball Property Damage: Errant golf balls can cause broken windows or damaged cars, resulting in expensive claims. Having Errant Golf Ball coverage can provide some financial protection in these scenarios.
Member & Guest Property Coverage: This insurance protects against the loss or damage of personal property belonging to members and guests while they are on site.
Country Club Insurance: This insurance type is only necessary for private or members-only clubs. It offers a unique range of coverage that includes property damage, liability, and protection for various club-related activities and operations.

Is Golf Insurance Expensive?

There isn’t a yes or no answer for this. The average cost of golf course insurance varies significantly based on several factors, including:

Coverage: The specific types of insurance you opt for will affect the overall cost. Generally, the more coverage you have, the higher your premium will be. Additionally, you will most likely see higher premiums if you have a higher risk of property damage.
Location: Where your golf course is located can significantly affect insurance costs. For example, premiums in larger states like Texas might be higher than the national average, while in smaller states like Rhode Island, they could be lower. Additionally, areas with higher crime rates, frequent severe weather, or a history of natural disasters are often considered higher risk, leading to increased premiums.
Size & Type of Operation: The size of your golf course and the services you offer will influence the overall cost. Larger golf courses with more employees or high-value assets generally see higher premiums.
Claims History: A history of frequent or high-value claims can result in higher insurance premiums because insurance companies view a history of claims as an indicator of future risks.

As a starting point, the average cost of general liability insurance for golf courses in America ranges between $400 and $1,000 annually for $1 million coverage. However, this only accounts for general liability and doesn’t account for other types of insurance that a golf course might need.

Requesting a quote is the best way to figure out how much your insurance program will cost.

Request a Free Quote

Discover what coverage you need with help from our experienced agents at Allied Insurance Managers. Located in Michigan, we’re a well-established agency dedicated to developing custom insurance programs, including golf course insurance, for businesses across the United States.

Chris Beardslee's Bio

Chris Beardslee is a 2003 graduate of Michigan State University, with a Bachelor’s degree in Finance. Having worked as an account executive since graduating, Chris has a proven track record of dedication to his customers and commitment to customer service. Chris takes great pride in working with business owners to develop a strategic plan that will allow them to achieve their risk management objectives.