For most golfers, there's nothing worse than a two-stroke penalty. Golf course owners face their own unique set of hazards, and many extend beyond the course: property exposure from fires and catastrophes, the ever-present threat of lawsuits, and the risks that come with operating course restaurants and clubhouses. Indeed, it may seem that the course itself is a side note to insuring the facility. “When you are insuring a golf course, you really have three or four businesses in one,” said Bill Dalton, president of Bridgepoint Insurance Group, Wayne, Pa. “There is the golf course, restaurant and banquet facilities, retail and other amenities. You need to analyze all of those exposures individually to make sure they are effectively handled.” Dalton has been focusing on the golf insurance sector for more than 10 years. He started Bridgepoint Insurance Group with golf as a key focus. Today, the agency insures nine clubs in the mid-Atlantic region, which makes up 15 percent of the agency's insurance portfolio. AA&B spoke with several agents who specialize in golf coverage and what to look for in a golf program. Losses
Wind and fire damage are two of the most common property claims. According to Travelers' 2006 “Safety on the Fairway” study, destruction from windstorms makes up 23 percent of total claim costs. Branches damage the greens, and the golf manager can control some of the damage by trimming dead limbs from trees and cleaning debris as soon as bad weather subsides. After wind, fire causes the most destruction at golf facilities, even though the actual number of claims filed is small (see Table 1). The most common cause of fire is from electrical deficiencies, usually in the golf cart storage area. Restaurant operations also play a role in fires. Other weather-related losses have large impacts on outdoor facilities, and these include hail, lightning and water damage. Catastrophe exposures can be the most severe: The West Coast has earthquakes, the Midwest has tornadoes, and the Southeast has floods. Golf clubs often incur frequent workers' compensation claims and historically these claims increase during difficult economic times, Dalton said.

Liability
Liquor liability has the most exposure, said Mike DeMarco, executive vice president, Venture Preferred Club Programs, West Chester, Pa. However, slips, trips and falls are the most frequently filed claims, he said. Depending on the amenities that clubs provide, drownings also are an issue. The Preferred Club program is underwritten on behalf of Chubb, OneBeacon, RSUI, The Hartford and USLI. The program includes general liability, building and personal property, herbicide and pesticide, D&O, liquor liability and high excess/umbrella limits, among other features.
Slips, trips and falls may be more prevalent on the golf course because of its terrain–rolling land, water hazards and various pathways. The Travelers study found that most of these accidents involved stairs, wet floors, icy sidewalks and holes around or in the fairway. Owners also should be aware of claims relating to cardiac arrest on the golf course. The remote locations of golf courses and frequently older demographics of club members make cardiac arrest a growing concern, said DeMarco. Venture noticed this trend and now provides a service to assess a club's preparedness to respond to that type of emergency. Risks
Golf course risks vary, depending on the type of course. On the property side, the largest exposure is the clubhouse, which can range from $500,000 to $20 million or more, said Ric Sirmans, underwriting manager for Travelers golf programs. “That is your largest asset and you want to protect it and the assets inside of it of which include any business interruption loss,” he said. The clubhouse can include a restaurant, bar, kitchen, ballroom, fitness center, sauna and locker rooms and many other types of exposures. The Travelers Eagle 3 program covers property and casualty and has been writing the PGA TOUR and its managed Tournament Players Clubs since 1988. Dalton echoes this statement. “In my opinion, the biggest risks clubs face are loss of damage to their clubhouse and course,” he said. “The clubhouse is where you typically serve food. And the course is why you are there. Those two areas are where to concentrate the bulk of your focus.” If a course loses its maintenance building, it can still deliver services by renting equipment or purchasing new equipment in a timely manner; but with loss to the clubhouse or course, it is inevitable that the club's service to its members and customers will be interrupted. The type of course affects risk, Sirmans said. Through the '90s and up until the last 2 years, the standard for course construction was tied to real estate. “In the last few years you saw more family-friendly courses and country clubs, with additional exposures besides just the golf course, including swimming pools and waterslides, day care, fitness and activity centers,” he said. Risks on the course include protection to the greens and tees and plants surrounding the course. Slips, trips and falls and other accidents pose risks for members. “D&O is a big one because you are talking about individuals on boards and committees at a private club who are making decisions for the membership,” said David Berliner, director of the Medalist golf program at SilverStone Group, Omaha, Neb. SilverStone Group, a private company, wrote $33 million in commissions last year with its 185 employees. “Their personal wealth is on the line with those decisions.”