Many golf courses fall on hard times or even go out of business because they failed to manage risk appropriately.
Evaluating costs and coverages on insurance plans can be a daunting task, especially in environments with high board member turnover, or inexperienced leadership.
Economies of Scale
As in many areas when it comes to purchasing, KPI Golf Management achieves significant economies of scale in the area of insurance. Because we are ensuring a multitude of facilities, we can achieve greater leverage in negotiations and get better rates than stand-alone facilities ever can.
We represent a larger book of business than any single golf club. In the event of a claim we receive the highest possible level of consideration and personalized customer service.
Where are the risks?
By and large, the biggest risk for any golf courses is fire. Fire accounts for almost 30% of all insurance claims.
…Followed by slips and falls, and then wind storm damage. Combined, these three areas account for over 65% of every dollar claimed at golf facilities nationwide.
Others making the short list are worker strains, flood and water damage, lightning and hail. Interestingly, there’s a disproportionately high number of claims for those “struck by objects”…and of course libel and slander suits.
In a study published by Occupational Health and Safety Magazine and according to the US Consumer Product Safety Commission, there were approximately 103,000 golf related injuries that were treated in doctors offices, clinics and emergency rooms in 2017.
These treatments incurred a total cost of approximately 2.4 billion dollars in medical expenses, legal fees, work loss, pain and suffering..
Frequency of Claims
In terms of claim frequency, slips, trips and falls account for 13% of all claims. Theft, worker strains, and vehicle-related injuries are close behind. These four claim types alone accounted for over 1/3 of all claims.
It’s important to review your facility history and determine what claims have occurred and where your protections are. Comparing national averages versus your own club experience can put you in a much better position to protect your facility against these kinds of future problems.
Staying proactive and understanding these issues can help with on-boarding and training your staff accordingly to prevent these kinds of situations and losses.
“Fire, slips & falls, and wind damage account for over 65% of all insurance claims dollars”
Risk Management and the Freedom to Act
Our core belief of providing our employees autonomy and the freedom to act goes a long way towards risk management.
A respectful and positive company culture where ideas are freely shared serves to bring possible risks and hazards to the forefront. Issues can be resolved before they turn into injury or lawsuits.
It’s important that employees are empowered to seek out and resolve potential problems before they happen. A golf course, given the amount of land and space is full of potential hazards. There’s no way that one person can find everything.
Walk the golf course and premises with key employees, taking notes as to which areas may need attention before the golf season begins.
Make a list of trouble areas identified by your team. This is a great way to invite feedback and share ideas, achieving buying when it comes time to deliver solutions.
Historically Problematic Areas
Based on industry data and our experience, here is a short list of historically problematic areas that is by no means exhaustive.
- Golf Car operations and storage facilities
- Golf paths
- Employee safety policies & procedures
- Alcohol serving and control policies
- Adjacent properties and errant shot areas
- Alarm systems and monitoring
- Junior golf regulations
- Non-golfing guests unfamiliar with rules
- Slip and Fall warnings and controls
- Severe weather systems