Natural Disaster Cover – Is Your Golf Club Protected?

Recent climate-related catastrophes around the county are putting an onus on Australian golf clubs and facilities to review their insurance policies – before it’s too late!

It is old news that Australia is a country with some extreme weather. Just recently, we were in the grip of the worst drought in over 100 years, resulting in a series of wildfires across NSW, QLD, SA and VIC, which impacted homes and businesses, leaving behind entire communities in dismay.

In NSW, where people were unable to tame the fires for several months, there’s now reports of golf clubs that have suffered partial losses on their property, but the bigger impact being the loss of revenue from the disruption of normal trade.

According to Insurance Council of Australia, to date there has been more than 23,000 insurance claims made in relations to the fires, with a total loss of estimated value of $1.9 billion.

What is important to know is, that even though most insurance policies cover you for damage caused by fire, including bushfire, generally the damage has to be cause by the actual flame. This means your club facility and assets are most likely not covered under your current policy for heat-related damage, like scorching and melting, or smoke, ash and soot damage. This includes if your home is damaged by a nearby fire or bushfire.

So, if not done already, recent weather events should urge all golf clubs and facilities across Australia to review their insurance policy to ensure they’re properly covered, especially as we’re only at the beginning of this year’s storm season…

FLOOD PROTECTION?

Not entirely surprising, after drought comes rain. And a heavy deluge of it too. A weather system that brought torrential rains which saturated large parts of New South Wales and Queensland shortly after the fires saw several golf courses, especially the low lying ones, disappear below the water.

In NSW, Luddenham’s Twin Creeks Golf and Country Club was left in a devastating state after a recent storm raged through the area. The Golf Course had to close down business after experiencing extensive damage from the downpour of rain

The Club CEO said the club had expected some impacts with the severe weather, being located in a cyclone prone region, but did not anticipate the level of damage they sustained.

And it is usually small regional clubs that are the most vulnerable to such detrimental events. Clubs which are already facing financial pressures from small and declining local populations and are dealing with vastly different challenges to what many of the inner-city clubs may face.

Such clubs are now 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.

For clubs and facilities affected by a natural disaster like bushfire, floods or other severe weather events, holding a relevant policy of insurance usually means the difference between survival and having to close for good.

BUSINESS INTERRUPTION

Often the income impact from closing your course due to damages from catastrophic weather events such as flooding or bushfires, is more detrimental than actual repairs. The loss of income from lack of business is greater than the cost of the reparations to the club.

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 and livelihood are protected, whether or not you’re able to stay open for business during the restorations.

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.

With experience from previous damaging weather event, including ex-tropical Cyclone Owen in 2018, which left many communities in devastation in large parts of Queensland, GBA has the knowledge and ability to ensure your golf club or facility receive the best cover, tailored to your club’s location and circumstance.

Last year, GBA 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.

GET YOUR COVER TODAY

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 insurance review journey soon.