Including golf tournament contests is a great way to raise additional funds as part of a fundraising golf tournament.
If you’ve been tasked with planning a golf tournament, you might consider incorporating an exciting hole-in-one prize. Hole-in-ones do not happen that often, but when they do, tournament planners are happy they took the time to buy insurance. It’s never been easier to offer exciting hole-in-one prizes at affordable prices. We spoke with Dennis Chase at Hole-in-One Clearing House to understand the basics of HIO insurance and how an organization might offer a thrilling prize at a golf tournament.
How does Hole in One insurance work?
Scenario: A charity golf tournament solicits a local car dealer to partially sponsor their event. The dealer places a new BMW valued at $65,000 out at a hole. Whoever putts a hole-in-one at the designated spot wins the car.
Details: The car dealer calls an insurance company. The company, factoring in a number of variables such as distance and number of players, writes an insurance policy. To get an idea of cost, a realistic amount for this prize is approximately $850. The company then pays off the price of the car to the dealership if there’s a win.
How is the price paid for Hole in One insurance calculated?
Three variables determine the price for insurance:
- The number of golfers: 150 players will cost more than 80
- The yardage of the hole: 180 yards will cost less than 160.
- The dollar value of the prize: A prize valued at $150,000 will cost more to insure than one valued at $50,000.
The formula is very simple and straightforward. Hole-in-One Clearing House pays off approximately every 120 tournaments. However in the case of Member/Guest or Member/Member tournaments, the payment is closer to every 50 events because the golfers are more skilled.
What should people look for when researching a Hole in One insurance provider?
You should always ask two questions: 1) Are you licensed in our State? and 2) Are you insured? Take a look at their insurance policy. It also doesn’t hurt to look them up online and see if they have a clean record. A simple Google search on their name might turn up surprising results.
Any other suggestions you may have?
At Hole-in-One Clearing House, we can do any kind of a prize as long as there is a dollar value attached. We’ve insured livestock, a high-end Mercedes, His & Her bands, and a Maserati. Our company insures up to one million dollars. The prizes create plenty of excitement. A shiny Harley-Davidson Fat Boy sitting out on the green inspires a lot of enthusiasm. Another idea for charities is to split a cash prize with the winner.