Time To Review Your Golf Club Insurance Policy For 2023: Navigating Natural Disasters, Emerging Risks and Trends

With the ever-changing landscape of the golf industry, from technological advancements to the ongoing effects of natural disasters, it is crucial for golf clubs to stay well-informed and review their insurance coverage. The emergence of new risks and trends means that having specialist advice and adequate protection in place is more important than ever.

In this article, we’ll look at the risks and exposures that golf clubs must be aware of in 2023 when considering insurance coverage and how they can navigate emerging risks and trends faced by the golf industry.

Natural disasters

Australia is known for its unpredictable and extreme weather conditions causing havoc to business operations across many industries. According to Insurance Council of Australia, there was more than 23,000 insurance claims made in relations to the 2020 bush fires, with a total loss of estimated value of $1.9 billion. And last year the insurance industry reportedly suffered $4,895 million in losses from flood events in Queensland and New South Wales alone. The numbers paint a clear picture of the risks and financial hardships many golf clubs and business are facing as a result of the extreme weather conditions.

The damages caused by these events is changing the way insurance carriers evaluate property risks for golf and country clubs and the coverage they offer. Holding a relevant insurance policy including Business Interruption Protection is now crucial for clubs and facilities affected by natural disasters such as bushfires, floods, and other severe weather events. It can mean the difference between survival and closure.

Business interruption insurance is particularly important as the loss of income from course closure and other business disruptions often can be more detrimental than the cost of repairs and damages. This type of insurance protects the income and livelihood of golf clubs and are enabling clubs to stay open for business during the restorations. Holding a relevant policy of insurance usually means the difference between survival and having to close for good.

Emerging Risks & Trends

Cyber Hacking

Another growing concern for businesses across all industries is cyber security. As technology continues to advance, golf clubs and facilities are also becoming increasingly reliant on digital products and third-party services to conduct their operations and collect and share. As a result, online fraud has become an attractive way for criminals to steal information, money, or disrupt operations.

In recent years, there have been high-profile cyberattacks on organisations like healthcare provider Medibank in Australia and Wentworth Club in England. These attacks similarly resulted in the release of sensitive personal information and caused reputational damage and a loss of trust among members. While clubs can not necessarily avoid a cyberattack, they can minimise their risks and potential damages by taking a proactive stance and implementing sound cybersecurity measures. Additionally, it is recommended to use a tailored insurance policy that offers comprehensive coverage for first-party expenses and third-party liability from unauthorised access and use of data or software in clients’ IT infrastructure.

Golf Simulators

Another trend that has been growing in popularity is the use of golf simulators. These technology advancements allow golfers to practice and play golf in a virtual environment, which can be a valuable tool for both experienced golfers and beginners. However, installing and maintaining these can be costly, and there is also a risk of damage or malfunction of the equipment. Insurance for these new technologies is difficult to obtain today, but it is important to do the due diligence – because without adequate insurance coverage, a malfunction or damage to the equipment can result in operational interruption and costly repairs.

Golf Carts

GPS-enabled golf carts are a new technology that has been gaining popularity in recent years due to the added convenience and navigation features that they provide for golfers. However, with this new technology comes new exposures and liabilities. For example, these carts are typically more expensive than traditional golf carts, making them a more attractive target for theft and more expensive to fix if damaged or replace.

Additionally, these carts can have legal liability exposures. For example, if a golfer gets injured while operating a cart, the golf club could be held liable for the injury, and without adequate insurance protection, they could face significant financial losses.

Is a review of your golf club’s insurance overdue?

Insurance can be a complex and confusing topic and when it comes time for your annual renewal, it can be tempting to simply renew a policy without an adequate review. By working closely with an expert insurance provider, such as Golf Business Australia (GBA), golf clubs can review and update their policies to align with the ever-present and emerging risks to ensure that they have thorough coverage.

With the right insurance coverage in place, golf clubs can focus on providing an enjoyable and safe golfing experience for their members & guests with peace of mind.

If you’re in need of an insurance coverage review for your golf club or facility in 2023, please reach out to Golf Business Australia (GBA) at 1300 852 025 or visit www.golfbusinessaustralia.com.au and don’t forget to ask about GBA’s newly introduced Insurance Health-Check.