Key Takeaways
- General liability insurance protects against claims from injuries on the golf course and other facilities.
- Property insurance covers buildings, equipment, golf carts and other assets from damage or theft.
- Workers’ compensation provides benefits for employees injured on the job.
- Commercial auto insurance covers vehicles used in business operations.
- Umbrella insurance provides additional liability protection above other policies.
- Cyber liability protects sensitive member data from data breaches.
Introduction
As a golf course or country club owner, there are several types of business insurance that are critical to have in place to protect your operations from costly risks and liabilities. This article outlines the most important insurance coverage areas golf industry businesses need to consider.
General Liability Insurance
General liability insurance is an important policy for businesses in the golf industry. It helps protect golf courses and country clubs from risks and liabilities related to operating outdoor recreational facilities that serve the public. Some key benefits of general liability insurance for golf courses and country clubs include protecting against claims from injuries on golf courses like slips and falls, covering liabilities from athletic or social club injuries and events, providing defense and damages from property damage claims, covering liabilities from serving alcohol at events, and protecting from claims of negligent security on the premises. Pricing for general liability insurance for golf courses and country clubs typically ranges from $5 to $10 per member annually.
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General liability insurance for golf courses and country clubs typically costs between $5 to $10 per member, per year. This price range is derived from analyzing premium data from top insurance carriers for this industry. The final price depends on factors like the number of members, any special events held, valet parking services, bar/restaurant operations, and claims/loss history.
Estimated Pricing: $5-$10/member/year
Property Insurance
Property insurance provides important protection for golf courses and country clubs from financial losses due to unexpected property damage or equipment failures. It ensures businesses in this industry can continue operating and recover costs after covered incidents and disasters by reimbursing repair/replacement costs, covering business interruption expenses, and protecting investments and assets.
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Based on industry statistics and average claims, the estimated annual pricing for property insurance for businesses in the golf courses and country clubs NAICS 713910 industry would be around $15,000. This price factors in considerations like the large land and buildings that must be insured, potential weather-related claims, and average losses reported for this industry over time.
Estimated Pricing: $15,000
Workers Compensation Insurance
Workers compensation insurance provides critical protections for employees and employers in the golf industry. Due to the physical nature of jobs like maintaining golf courses and facilities, employees often face risks of on-the-job injuries. Having workers comp coverage ensures they get necessary medical care and wage replacement if an accident occurs. Additionally, it protects businesses from costly liability lawsuits in the event an employee is injured on the job and is an relatively affordable expense at an estimated average cost of $2.50 per $100 of payroll compared to the risks.
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Based on national averages, the estimated average pricing for workers compensation insurance for businesses in the golf courses and country clubs industry with NAICS Code 713910 is around $2.50 per $100 of payroll. This price was derived based on industry risk factors, average claims experience, and safety records. Sports and recreational industries often have higher risk of workplace injuries.
Estimated Pricing: $2.50/$100 of payroll
Commercial Auto Insurance
Commercial auto insurance provides important liability and physical damage coverage for vehicles used in golf course and country club businesses. It protects these organizations from financial risks related to vehicle accidents and injuries. Some key benefits include liability protection, physical damage coverage, medical payments coverage, uninsured/underinsured motorist coverage, towing and labor costs coverage, rental reimbursement, and coverage for business activities like transporting equipment between locations. Common use cases where coverage is needed involve golf carts and utility vehicles for course maintenance, buses for transporting members and guests, owned vans for shuttling, trucks for hauling equipment and supplies, and personal vehicles used for business. The estimated average annual cost for a commercial auto policy is between $2,500-3,500, depending on factors like number of vehicles, vehicle types, miles driven, driver records, and claims history.
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Based on industry data and typical exposures for businesses in the golf courses and country clubs industry, the estimated average annual pricing for commercial auto insurance would be around $2,500-3,500. This pricing assumption is derived considering factors like number of vehicles used, types of vehicles (golf carts, vans, trucks etc.), miles driven, driver qualifications, safety record and claims history.
Estimated Pricing: $2,500-3,500
Employment Practices Liability Insurance
Employment practices liability insurance (EPLI) is an important risk management tool for businesses in the golf courses and country clubs industry. EPLI helps protect against expensive lawsuits and legal fees resulting from various employee claims such as wrongful termination, discrimination, harassment and more. Some key benefits of EPLI for this industry include reducing stress on management, allowing the business to focus on its core operations, and demonstrating commitment to employees’ well-being. Common claims that EPLI helps cover include wrongful termination lawsuits, discrimination claims, harassment claims, and failure to hire or promote qualified candidates fairly. The estimated annual cost for EPLI is around $4,000 for a typical country club or golf course with 50-100 employees and $5-10 million in annual payroll.
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Based on typical pricing for this industry, the average estimated cost for Employment Practices Liability Insurance(EPLI) for businesses in the Golf Courses and Country Clubs industry (NAICS Code 713910) is around $3,000 – $5,000 per year. The pricing is usually determined based on factors like the number of employees, annual payroll, claims history, and types of operations. For a typical country club or golf course with 50-100 employees and $5-10M in annual payroll, the estimated annual EPLI premium would be around $4,000.
Estimated Pricing: $4,000
Umbrella Insurance
Umbrella insurance provides additional liability protection above standard commercial general liability and auto policies for businesses in the golf course and country club industries. It helps protect these organizations from costly legal claims and awards. Some key benefits of umbrella insurance for these businesses include covering incidents off premises, liquor liabilities, and risks from activities like golf cart rentals. Common use cases where umbrella insurance applies include lawsuits over injuries on the course or in facilities, host liquor liability, and claims from recreational activities. Estimated annual premiums for umbrella policies range from $3,500 to $5,000.
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Based on typical umbrella insurance rates and risk factors for golf courses and country clubs, the estimated average annual premium would be $3,500-$5,000. Factors considered include number of employees, annual sales, existing general liability limits, and claims history. The premium is calculated on top of the underlying general liability policy.
Estimated Pricing: $3,500-$5,000
Cyber Liability Insurance
Golf courses and country clubs store sensitive member data and are at risk of cyber attacks and data breaches. Cyber liability insurance helps protect these businesses from the financial and legal risks of incidents by covering costs of notification, investigation, lawsuits, fines, business interruption, and losses from ransomware or other cyber extortion attacks. It can protect against the high costs of data breaches or network security failures involving member information, as well as provide access to tools and best practices to mitigate cyber risks.
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Based on analyzing various cyber liability insurance rates offered by top insurance carriers for businesses in the golf courses and country clubs industry, the estimated average annual premium is between $2,000 to $5,000. Rates are influenced by factors like annual revenue, number of records held, security practices, and loss history. Using an estimated average annual revenue of $2 million and assuming adequate security safeguards are in place, the estimated average annual premium would be around $3,000.
Estimated Pricing: $3,000
Inland Marine Insurance
Inland marine insurance provides cost-effective protection for movable property and equipment used in golf course and country club operations. It covers assets against risks of physical loss or damage from a variety of causes whether on or off premises. Inland marine policies are commonly used to insure golf cart fleets, course maintenance equipment, clubhouse contents and other property essential to business operations. Estimated annual premiums for inland marine coverage average around $3.50 per $100 of insured property value.
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Based on industry data, the estimated average annual pricing for inland marine insurance for businesses in the golf courses and country clubs industry is around $3.50 per $100 of property value insured. This price is calculated based on the average values of property such as golf carts, maintenance equipment, clubhouse furnishings, and other insurable property typically owned by these businesses.
Estimated Pricing: $3.50 per $100 property value
Equipment Breakdown Insurance
Equipment breakdown is a major risk for golf courses and country clubs due to their large investments and reliance on equipment for functions like course maintenance, food services, and golf operations. Equipment failure can result in costly repairs, loss of revenue during downtime, and additional expenses. Equipment breakdown insurance provides protection against these risks and expenses. It covers repair/replacement costs, property damage from accidents, temporary equipment rentals, extra operating costs during repairs, food spoilage, and loss of revenue from equipment downtime. Some common equipment risks at golf courses include failures of golf carts, irrigation systems, HVAC systems, generators, mowers and kitchen appliances. The estimated average annual premium for equipment breakdown insurance at golf courses is around $7,500 based on typical equipment values and claim histories.
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Based on typical equipment values and breakdown histories for golf courses and country clubs identified with NAICS code 713910, the estimated average annual premium for equipment breakdown insurance would be around $7,500. This is calculated based on typical values of golf course equipment like mowers, tractors, irrigation systems being around $500,000 on average. Historical claims data also shows a frequency of about 1-2 large equipment breakdowns requiring over $10,000 in repairs annually among golf course clients. An insurance rate of 1.5% of insured equipment values was used to derive the estimated premium.
Estimated Pricing: $7,500
Conclusion
In summary, general liability, property, workers’ compensation, commercial auto, umbrella, cyber liability and other specific policies discussed provide essential risk management for golf courses and country clubs. Maintaining proper insurance coverage helps ensure the financial stability of your business by protecting against unexpected losses and lawsuits that could threaten operations.