Discover If You Can Benefit from Hole in One Insurance
There are several advantages of purchasing hole-in-one insurance. First, it can help you raise more money. This is because if you are forced to rely on your own funds, especially for a small company or non-profit organization, then you will more than likely be able to offer only a very small prize. However, with hole-in-one insurance you can offer a substantial amount to entice others to pay and play. Since you do not have to pay the actual amount of the prize, you can insure and advertise huge prizes for less than the amount you would pay by going it alone with a small prize. Think about this, if you sign up 144 players you can insure a $10,000 prize for only $307. Now compare that with an entry fee for 144 people.
The higher the cash prize that you are able to offer, the higher the entry fee you will be able to collect. Also, the more people you are able to attract, the less the insured amount will cost per person. For instance, $195 in insurance for 72 players is $2.70 each, however, if you are able to double your players you would pay $307 in insurance for 144 players which would be $2.10 each. So, not only will you double your profits because your number of players has doubled, but you will also save an extra $0.60 per person for another $86.40 in profits. To top it off, if you plan to hold several events, many hole-in-one insurance companies will give you a multiple event discount on your insurance cost.
There are disadvantages to purchasing hole-in-one insurance as well. Particularly the fact that you have to pay the insurance fee whether or not a prize is won. Of course, The profits of the event will more than make up for the relatively small cost of the insurance fee. There will always be those that wish they hadn’t bought insurance if no one won, since they would have profited another few hundred dollars, but it is better to be safe than sorry.
There is also the time that you invest into finding a hole-in-one insurance company. There is a lot of time involved in finding insurance for anything, and golf is no different. You have to visit multiple websites, make calls to the actual companies, and maybe even visit a few in person once you have narrowed down your list of potentials. You also have to compare the cost of each company and whether they have any benefits, such as multiple event discounts. One other thing to remember is that this type of insurance is usually not available for holes with under 135 yards in between the player and the hole. This may discourage some from signing up or from paying a high entry fee, which will reduce your profits.
The type of people that generally hold an event like this, and therefore are in the market for hole-in-one insurance, are:
– Any organization, such as a country club, trying to raise money to enhance itself. They may need the profits to add on to the building, buy new equipment, or to use on other required upkeep of the property.
– A non-profit organization that may want to donate the money to charities, medical research foundations, or use to fund last requests from terminally ill patients.
– An employer who wants to hold a fun event for their hard working employees. They can have a barbeque, after which everyone will watch entrants take a swing at the hole. They may not require an entry fee to participate, but instead use the insurance as a cheap way to fund a potentially pricey event. The possibility of winning such a great prize will make the experience more exciting for everyone.
The chances of someone actually hitting the hole-in-one and the insurance company having to pay out is dependant on many factors. First, the more entrants you have taking a shot, the more likely it will be that someone will hit it. Secondly, the skill of your entrants is also a factor to consider. If all of your players are amateurs, then it will be less likely that anyone will win the prize. On the other hand, if you have a few club pros in the mix, then the chances will be a bit higher. The last factor to consider is how many yards the ball has to go to make the hole. The closer the players are to the hole, the more likely they will be to get a win. The insurance fee paid will be based on these factors. If you have 50 amateurs playing 200 yards away from the hole, you may be able to find cheap insurance. However, if you have 200 pros playing 135 yards away from the hole then your insurance is liable to be a bit more pricy.
Let’s take a quick look at a few examples of profits that could be made from such an event. If the above mentioned 144 entrants each paid $25 for a shot at a $10,000 prize, your company profits would add up to $3,293. If you decide to have a smaller function of 60 players paying $15 for a chance at $5,000, your organization could make almost $800. The higher your prize, the more people you will draw in and the more your company or organization will benefit.
Hole-in-one insurance can be a great asset to any company planning to hold a golf tournament. However, this type of insurance may not be the answer for every organization. It is the responsibility of each company to research the options available to them before jumping into any insurance agreement to make sure it is a good fit. Research carefully and keep your options open!
