Golf insurance – who needs it?

Canada’s favourite summer game is not without its hazards. And contrary to what most players think, water and sand are not the worst of them.

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Golf, with its expensive equipment, clubhouse facilities and huge green spaces, has risks that are unique in the sports world. So if you’re in the game, and especially if you’re in the business of the game, you need the right insurance for your own and your patrons’ sake. Chartered Accountant Stephen Johnston is President of Global Golf Advisors, Inc. in Markham. He and his staff advise 2,300 clients around the world on golf course development, management and maintenance. Here, he shares important insurance tips that can help golfers and golf course managers protect themselves, their property, and their clientele from some of the other golf hazards.

A golf business is a business

Golf clubs are subject to the same basic risks as most other businesses. Insurance is needed to protect buildings, equipment and other assets from loss or damage. Owners and managers must be safeguarded with respect to public liability issues and actions stemming from any number of risks.

Insure your board of directors

The member-directors of private clubs can sometimes be held personally liable for the club’s actions and things that may result from performing their duties. Both directors-and-officers insurance and errors-and-omissions insurance may be advisable to protect against financial and solvency issues, employee claims and client or member lawsuits.

Golf vehicles need special attention

Motorized golf carts and riding mowers are often subject to special consideration. Much depends on the licensing categories into which they fall, who is operating them and how they are being used. Don’t assume that your general insurance policy covers all contingencies and circumstances.

Storing members’ equipment is a responsibility

An average golf bag with clubs, shoes and assorted accessories can run about $3,500, even with depreciation. With 300 sets, a club’s liability exposure is over $1 million for the storage facility alone, so be sure to purchase enough of the appropriate insurance. Consider having contracts that clearly define who is legally responsible for the property being stored and getting signed waivers from members using the service.

Service staff need training to protect your business and patrons

Clubs that serve alcohol have special responsibilities for the safety of clients, both on and off the course. Proper liability insurance is mandatory, but it’s always better to prevent the problem in the first place. Programs like Smart Serve Ontario (free and available online) can teach staff about laws concerning alcohol in Ontario and how to sell and serve it responsibly.

Don’t ignore the neighbours

Courts have ruled that, yes, clubs are responsible for golf balls that land on the property of nearby neighbours and that these can constitute a “private nuisance.” Because there’s no actual injury or damage to people or property, there is no liability insurance protection. The cost of legal defense and the subsequent costs of netting, trees and/or course redesign is not covered by insurance.

Labour laws apply to golf clubs, too

Check with the Workers Safety and Insurance Board (WSIB) to determine if your club is required to register. But consider that regardless of the law, participation in the program automatically removes an employee’s right to sue his/her employer in the event of a job-related accident or illness. It can make good business sense to pay the premium that will protect your people, yourself and your golf business. Brought to you by the Institute of Chartered Accountants of Ontario