Keep Your Insurance Risk Under Check
About this time every year, as golf courses gear up for hurricane season, golf course owners and managers get their annual warning about checking their insurance policies and discussing coverage needs with agents. The warnings have been heightened since the wake of Hurricane Katrina’s 2005 disasterous multi-billion dollar hit on Southern golf courses.
If it has been a few years since you reviewed your coverage, many of your assets could be undervalued, leaving a possibility of unbelievable out-of-pocket replacement and recovery costs. However, it is not too late to review your policy.
Clubsurance, a division of The Commonwealth Insurance Group in Charleston, South Carolina, developed an effective risk plan including the following four steps to help owners plan and keep their risk in check:
Identifying exposures and reviewing your claim history -
How many golfers are coming to your property? A course doing 40,000 rounds per year is far more exposed to claims resulting from slips and falls, for example, than one doing 15,000 annual rounds. Now take a look at historical data to see where you need to bolster your safety precautions. If two members of your wait staff suffered injuries last year while exiting the kitchen, it’s probably time to replace the non-slip floor mats.
Developing a strategy that reduces or removes liability -
You could choose to stop selling alcohol, for example, if your assessment showed a high rate of alcohol-related accidents. You can reduce the risk of fire by installing or upgrading your sprinkler system and by ensuring your fire extinguishers are in good working order. If you feel secure in your situation (read: lots of cash in the bank and feeling lucky) and your claims history shows minimal exposure, you may decide to retain your risk yourself by self-insuring. Finally, you can do what most do – transfer your risk to an insurance provider. A combination of all these strategies typically produces the best results.
Implementing programs -
Establish a safety committee that meets regularly and reviews health and safety precautions. Consider financial incentives for employees based on an extended period of safe operations. Make sure you’re in full compliance with OSHA guidelines. Develop a disaster plan, communicate it to employees and practice it.
Monitoring the overall risk management plan -
This should be continually reviewed and revised in consultation with your insurance agent as your business plan and claims history change. While a detailed and well-executed risk management plan certainly does not guarantee a claims-free golf facility or ensure lower premiums.
All these factors are important to consider when evaluting your plan. After all, this could be the calm before the storm.
If it has been a few years since you reviewed your coverage, many of your assets could be undervalued, leaving a possibility of unbelievable out-of-pocket replacement and recovery costs. However, it is not too late to review your policy.
Clubsurance, a division of The Commonwealth Insurance Group in Charleston, South Carolina, developed an effective risk plan including the following four steps to help owners plan and keep their risk in check:
Identifying exposures and reviewing your claim history -
How many golfers are coming to your property? A course doing 40,000 rounds per year is far more exposed to claims resulting from slips and falls, for example, than one doing 15,000 annual rounds. Now take a look at historical data to see where you need to bolster your safety precautions. If two members of your wait staff suffered injuries last year while exiting the kitchen, it’s probably time to replace the non-slip floor mats.
Developing a strategy that reduces or removes liability -
You could choose to stop selling alcohol, for example, if your assessment showed a high rate of alcohol-related accidents. You can reduce the risk of fire by installing or upgrading your sprinkler system and by ensuring your fire extinguishers are in good working order. If you feel secure in your situation (read: lots of cash in the bank and feeling lucky) and your claims history shows minimal exposure, you may decide to retain your risk yourself by self-insuring. Finally, you can do what most do – transfer your risk to an insurance provider. A combination of all these strategies typically produces the best results.
Implementing programs -
Establish a safety committee that meets regularly and reviews health and safety precautions. Consider financial incentives for employees based on an extended period of safe operations. Make sure you’re in full compliance with OSHA guidelines. Develop a disaster plan, communicate it to employees and practice it.
Monitoring the overall risk management plan -
This should be continually reviewed and revised in consultation with your insurance agent as your business plan and claims history change. While a detailed and well-executed risk management plan certainly does not guarantee a claims-free golf facility or ensure lower premiums.
All these factors are important to consider when evaluting your plan. After all, this could be the calm before the storm.
posted by Angi @ 5:25 PM
0 Comments:
Post a Comment
<< Home