Queensland proshop owner stays afloat with business interruption insurance following cyclone damage

Not totally surprising at this time of the year, the weather around the country has been a tad bit on the extreme side, alternating hot temperatures well above average, and heavy deluge with significant storm events to follow.

In late December last year, ex-tropical Cyclone Owen left many communities in devastation when dumping incredible amounts of rain over parts of Queensland’s north tropical coast in particular.

Unfortunately, these types of events more often than not also cause havoc to golf courses, with several clubs around Queensland and NSW experiencing business interruption and substantial financial hardship as a result of the rough climate.

This manner of unusual weather is changing the way insurance carriers evaluate property risks for golf and country clubs in Australia, and the availability and terms of coverage they’re offering.

Golf clubs and facilities in cyclone-prone areas especially need to assess their risks and prepare for what could happen, in order to minimise the financial affect of business interruption caused by severe weather events.

Business Interruption

Commonly, most commercial property insurance claims focus on physical damage, instead of economic loss. Often the income impact from closing your course due to damages from catastrophic weather events is more detrimental than actual repairs.

This is why business interruption insurance is critical. When an unexpected circumstance causes your course, pro shop or driving range to close suddenly, your income & livelihood are protected.

By their very nature (and Mother Nature), business interruptions are unpredictable at best.

Golf Business Australia (GBA), the fastest growing golf industry insurance and finance provider in the country, has a great understanding of the struggle when dealing with a giant monkey wrench like a storm devastating your course.

The company has recently teamed up with Martin Minett, Business Interruption specialists, & other golf industry risk pioneers such as Epar & Country Club Intl, to deliver an end-to-end risk solution for its partnering golf clubs.

Golf Business Australia recently had an outstanding claims outcome, where they were able to deliver an exceptional business interruption outcome through its expertly prepared ‘Pro Shop Insurance’ policy, to a PGA Professional who suffered Loss of Attraction following the Nth QLD cyclones.

Loss of Attraction;

 The Loss of Attraction extension is intended to cover financial loss caused by the destruction of an attraction nearby, but not necessarily damage to the insured premises itself.

At GBA, if your business (i.e. Pro Shop) is located within a multi-tenanted commercial complex, we will treat damage to property of a major tenant (i.e. Golf Club) as being damage for the purposes of this cover section provided that:

(a) The damage to the property of the major tenant would have been covered under the Property Damage cover section if such damage had been to property insured under that cover section;

(b) The damage results in a reduced pedestrian count in such complex; and

(c) The damage results in interruption of or interference with your business.

The Outcome

Located in the Whitsunday region, the Pro Shop Owner/Operator had experienced noteworthy business interruption following course closure as a result of cyclone Owen last year.

Golf Business Australia settled in favour of the Pro Shop Owner/Operator, offering $12,500 to represent their loss of profits during a normally busy holiday period, a result of reduced customer traffic following unplayable course conditions – Loss of Attraction.

If your club or facility did not incur any of the damage during the storm season, you’re one of the lucky ones. But there is no guarantee that you’ll be as lucky in the future.

Golf Clubs need to be aware of risk and manage it effectively.

Every golf business has a unique risk profile – let Golf Business Australia customise a plan that works to protect your assets, & revenue, from the severe weather events unique to your area.

Our premium range of golf insurance products aim to offer total golfing peace of mind – whether you are looking for golf insurance for your golf equipment, insurance cover for your buggy or that all important on course third party liability protection, GBA has got you covered!

Feel free to call The Golf Insurance Guy Daniel Bateup anytime on 1300 852 025 or fill out the form on our website and we’ll be in touch to start your journey soon.