How Hole In One Insurance Works?

Answer 1

Hole in one insurance is a special type of insurance designed to protect companies that offer special Golf contests. As the name implies, it’s typically reserved for special events such as when a guest scores a hole in one--many resorts and golf tournaments offer astronomical prizes to match the astronomical odds of this happening, and if a guest were to actually accomplish this, the hole in one insurance policy of the company would handle the expense of the prize.

Hole in one insurance isn’t limited to an actual hole in one; it may apply to a number of special circumstances during a golf tournament. By buying insurance, a resort or golf course can make a tournament interesting by offering huge cash prizes, without necessarily having the funds to back up these prizes. The insurance companies almost always profit from the arrangement, since the chances of large prizes being rewarded is extremely low. However, when they do have to pay out on a claim, they usually have to pay out a tremendous amount of money.

In most cases, hole in one insurance companies will require a certain golf shot to have a number of witnesses. They may even require photographic evidence, depending on the event. The terms of hole in one insurance contracts vary greatly, as does the cost of the service (although in most cases, the cost is extremely low--under a few hundred bucks). The low cost makes this form of insurance extremely popular, and the companies that offer hole in one insurance are extremely successful for the most part.

If you participate in a golf tournament, you’re probably taking advantage of a hole in one insurance program, even if you weren’t aware of it at the time. If you run a resort or golf tournament, it’s well worth the money to get a hole in one insurance policy--they’re great, low cost ways to keep interest in a tournament high.