Insurance for Golf Courses

Golf courses vary in size and complexity, and may be municipally or privately owned and operated. They can be 18 hole, 9 hole, 3 par, miniature golf and/or a driving range. Longer courses will offer rental carts. Some have snack bars or retail shops, or offer lessons or repair services. Some sponsor tournaments on premises.

Country clubs offer many recreational opportunities to members and their guests. Golfing is often the primary draw, but the facilities may also offer swimming, tennis, racquetball, handball, skiing, horse back riding and other sporting activities. Most country clubs have restaurants, snack bars, lounges or bars. Some have rental facilities, catering services and retail shops. Repair services may be available. Lessons may be offered. Tournament events may be held on premises.

Recommended Insurance Programs for Country Clubs and Golf Courses

Minimum recommended coverage:

• General Liability
• Liquor Liability (if applicable)
• Property Insurance
• Hired and Non-Owned Auto (full commercial auto if vehicles owned)
• Employee Dishonesty Bond
• Business Income with Extra Expense
• Workers Compensation

Other coverages to consider for Golf Courses:
Business Personal Property, Employee Dishonesty, Money and Securities, Accounts Receivable, Computers, Contractors’ Equipment, Golf Carts, Valuable Papers and Records, Employee Benefits, Environmental Impairment, Umbrella, Business Income and Extra Expense, Mobile Equipment, Liquor Liability and Employment-Related Practices

Common Risks and Needs Associated with Country Clubs and Golf Courses

GL Insurance
GL premises liability risks are significant due to the number of visitors on the premises. Public safety is a major concern as visitors can be injured by slips, falls and flying golf balls. Golf carts can overturn or collide with stationary objects. Many courses require customers to sign hold harmless agreements before using the facilities or renting a golf cart.

If lessons are offered to children, it is important to conduct background checks on instructors. A driving range should be physically separated from the rest of the facility, with barriers to prevent the balls from flying into roadways and neighboring houses. Private golf clubs may have personal injury exposures from discrimination, defamation of character, false arrest or unlawful detention.

Property Insurance
Property exposure may be very minimal if limited to a clubhouse facility and maintenance shed. If there is a restaurant, pro shop or repair facility, exposures will increase. The distance from public fire protection and fire services is important as many golf courses are located in rural areas. Wiring should be up to date and adequate for the operation. Chemical applications such as insecticide, pesticide or herbicide used to maintain the grounds may be flammable and should be stored separately from other operations.

If there is a pro shop, theft can be an additional concern. Golf carts can be electrically powered or gasoline powered. If gasoline is used, the fueling operation needs to be separate from other facilities. If carts are electrically powered, they can release flammable hydrogen gas while being recharged. The charging room must be well ventilated. The premises should be protected against unauthorized access after hours. Business income and extra expense will be limited unless significant activities take place indoors.

Commercial Auto
Automobile liability exposure is generally limited to hired and non-owned vehicles for employees running errands. If there is any valet service, limo, transport, pick-up or delivery services, MVRs must be ordered on all drivers. Any owned vehicles must be maintained on a regular basis with all services documented.

Commercial Crime Policy
Crime exposure is from employee dishonesty as well as money and securities. Background checks should be conducted on all employees handling money. An inventory monitoring program should be in place to make sure items are not slipping out the back door. All ordering, billing and reimbursement responsibilities should be separated and records should be reconciled on a regular basis. Annual external audits should be conducted.

Inland Marine Coverage
Inland marine exposure is from accounts receivable, computers, contractor’s equipment, and valuable papers and records. Bailees exposure results from the handling of customers’ goods, such as those left for service, repair or while visiting the facility and property left in locker rooms. Golf carts coverage should be considered. Contractors’ equipment is used to maintain both buildings and yards.

Workers compensation
Workers compensation risks can be high. If the golf course does its own grounds maintenance and chemical applications, workers can incur cuts, burns, contact dermatitis or respiratory ailments. Pros and instructors, caddies and others that may be involved in related positions will have potential for slips, falls, strains, sprains and being hit by errant golf balls or equipment.

Business Liability Quotes for Golf Courses

General Liability Shop.com offers affordable liability insurance quotes for Golf Courses throughout the U.S. Our Country Club programs include all lines of business insurance, as well as our Target programs for business owners policies (BOPs). Contact one of our business insurance Specialists today at 800-900-8657, or start a quote online now.

Golf Course Liability Classification Codes

Commercial insurance companies use various liability classification systems in order to classify and rate coverage premiums for Golf Courses. Here are the most common business insurance classifications for Country Clubs:

Business Liability Category: Recreation and Sports

SIC Business Insurance Codes:

• 7992: Public Golf Courses
• 7997: Membership Sports Clubs
• 7997: Amusement and Rec Sports Not Otherwise Classified

NAICS Liability Classifications:

• 713910: Golf Courses and Country Clubs
• 713990: Other Amusement and Recreation Industries

Business ISO General Liability:

• 11138: Private Country Club
• 44069: Golf Course—Miniature
• 44070: Public Golf Course
• 44071: Golf Driving Range
• 44072: Golf Cart Rentals

Common Workers Compensation Class Codes:

• 9016: Recreation Park and Drivers
• 9060: Golf Clubs and Country Clubs