Golf’s Leading Insurance Advisor On Course For The Golf Business Forum

By Mathilda Andersson

A MILESTON will be marked this year when Australia’s premier golf insurance specialist Golf Business Australia (GBA) returns as a founding partner to the highly anticipated Golf Business Forum/PGA Expo in Melbourne this October – back to where it all started for the Sydney based company.

Then held at the Melbourne Park Function Centre, the forum’s inaugural event became something of a catalyst for the newfangled firm, which now, some six years later has truly cemented its position in the industry as a leading provider of golf specific insurance solutions, covering over 100 golf facilities and pro shops around Australia.

Inside Golf caught up with founder and Managing Director Daniel Bateup a few months ahead of the educational event, which will be held at the CENTREPIECE at Melbourne Park this year, to hear how the company and the industry has changed since we last saw him at ‘the Forum’ in 2016.

How does it feel being back at the Golf Business Forum?

We are excited to be back at the Golf Business Forum where it all began! In 2016 we knew no one, but we knew we were in the right place. Six years on we proudly call many exhibitors and delegates our valued customers. If it wasn’t for them, GBA would not be the success story it is today.

From an insurance standpoint, the outlook is totally different today than back in 2016. I think major global and local events as well as environmental factors have had the biggest effect on the industry’s insurance market recently, along with golf courses’ susceptibility to volatile weather conditions which has forced many insurers out of the market.

The manner of unusual weather we’ve had this year is changing the way insurance carriers evaluate property risks for golf facilities in Australia and the availability and terms of coverage they’re offering. With interest rate still low and the steep increases in preventable type insurance claims, the stakes are too high for most insurers who have little faith left in the industry. This has left Australian golf facilities with very few coverage options.

We hope this year’s expo and our continued involvement in the Golf Business Forum will grow our understanding of, and connection with, today’s golf industry and its insurance needs.

What has ‘the Forum’ meant for Golf Business Australia?

The industry partnerships we have forged through these events and the interactions with industry peers have helped us cultivate and improve our insurance offerings. It (the Forum) has allowed us to extend the raft of customers beyond traditional golf clubs – so in that aspect it has incredible valuable to the company.

Our value propositions now reach beyond your typical insurance coverage and is inclusive of contemporary formats and emerging trends like driving ranges, indoor golf facilities and golf simulation centres. These are some of the fastest growing trends in the industry and we want to assist these businesses to achieve success in their market through our value-adding products and qualified, experienced service.

This year we have developed a Golf Technology Insurance Scheme in response to the new market demand. It is tailored specifically for owner/operators of indoor golf simulation and club fitting facilities using the latest in golf technology and was purposely designed to cover the unique risks associated with this emerging sector of the golf industry. The policy features extended occupation cover and protection against equipment breakdown (because let’s face it, technology has a habit of failing when you least expect).

Since these facilities have a completely different risk profile, it’s important that we interact with clients in their network to be able to provide them a bespoke solution.

The Golf Business Forum is a great place to get those conversations going!

How important are industry relationships for Golf Business Australia?

Incredibly important! We have always believed in a united industry front, and we are always seeking out relationships in the industry to benefit our clients.

Our interactional approach has attracted a long line of invaluable partnerships with insurance peers over the years, including Business Interruption specialists Martin Minett, and other golf industry risk pioneers such as Epar, Country Club Intl and Employsure. It is these relationships in the industry that enables the company to continue to deliver an end-to-end risk solution for all clients.

We have also been lucky enough to have long running relationships with golf industry experts and government bodies like the PGA of Australia and Golf NSW. These relationships allow us to tailor strategy solutions for a broad range of clients and provide them with intimate golf insurance market knowledge that other insurers are lacking.

By working as an official licensee of the PGA for the past three years we have been able to assist many PGA clients with developing cost-effective and broad coverage insurance solutions in form of a tailored Pro Shop Insurance Package, offering exclusive premium discounts and cover benefits only for PGA members. We designed this policy to address gaps in cover created by insurers who labelled golf professionals as “retailers” when the business of a golf pro shop is much more.

We are pleased to see these partnerships continue well into the future, for us to be able to provide the best service and coverage exclusively to our clients.

Finally, claim assistance on losses are now in the millions, what insurance advice would you give clubs?

No doubt the industry has had a tough run over the past few years in terms of unpreventable weather events causing havoc to golf courses. And unfortunately, this run of wet weather and flooding continues to be a massive disruption to business and substantial financial hardship as a result.

Golf Link just recently came out with a new report showing to what extent the interruption has had on golf rounds played this year, which sadly was down more than 50 per cent for inner Sydney clubs compared to previous years. So, from an insurance perspective it’s important clubs and facilities assess their risks and review their insurance policies now, to minimise the future financial effect of business interruption.

Most commercial property insurance claims focus on physical damage instead of economic loss, but as figures show, often the income impact from closing your course due to damages from catastrophic weather events is more detrimental than actual repairs. Member frustration with not being able to play on quality courses also has a long-term effect on club’s financial viability. This is why Business Interruption insurance is critical.

Holding a relevant policy of insurance usually means the difference between survival and having to close for good!

However, it’s important to also understand that the weather alone is not responsible for the volatility of the current insurance market and golf courses’ high-risk profile. Many of the million claims are so called preventable type insurance claims. These are losses relating to things within clubs’ control, like cleaning gutter and tree maintenance. These are arguable an equal contributor to the lower tolerance among insurers for clubs around Australia.

To turn it around for golf’s insurance market, the industry needs to come together as a whole and adopt good risk practices. I believe with the help of risk maintenance and practical mitigation strategies the market for many smaller clubs can turn. Things like club house maintenance programs and prevention methods as easy as cleaning gutters can see big losses in relation to storms (55% of claims) be avoided and in turn not increasing claims. Clubs just need to be educated on these practices.

By having programs in place that assist staff in identifying what could go wrong and then taking viable measures to prevent it, will help the whole golf industry to become more attractive to insurers.

Need golf insurance?

Insurance can for some be a minefield, and when the annual renewal notice comes along it’s sometimes easier just to pay premium, rather than take the time to review your policy.

If you need your insurance cover reviewed and quoted at your golf club or facility – please get in contact with Daniel on 1300 852 025 or via www.golfbusinessaustralia.com.au. He will be at the Golf Business Forum/PGA Expo in Melbourne from October 12-13 this year and would love to chat about your insurance needs.

Daniel builds a personal relationship with each client and takes the time to understand your particular needs. He will customise a plan that works to protect your assets, and revenue, from the unique conditions and threats to your golf business.