Hole in One Prizes Who Foots The Bill?
Everyone knows that making a hole in one isn’t easy, but have you ever wondered just how unlikely it is? The National Hole in One Association estimates that the odds of getting a hole in one is about 150,000 cases occur per 490 million rounds of golf; that’s around 0.03% of the time.
Amateur and professional tournaments often offer hole in one prizes to drum up excitement for the tournament; after all, who wouldn’t want to win free prizes? These hole in one tournament prizes have been known to include new cars, luxurious vacations around the world, and large sums of prize money. Sometimes, these hole in one prizes can be valued for up to tens of thousands of dollars, depending on the players’ level of skill and estimated odds by the tournament host; however, not every tournament host is willing to wager these odds, no matter how unlikely.
When running a hole in one contest, if even one participant were to win, there’s a possibility that any tournament profits would in most cases be wiped out. In order to protect themselves against this possibility, most tournament hosts will invest in what’s known as hole in one golf insurance to protect their assets.
A hole in one insurance policy helps to alleviate the financial burden on tournament hosts. Every tournament where a hole in one prize is offered, the hosts pay a small premium for a policy, essentially betting on the fact that someone will win. If no one hits a hole in one, the insurance company gets to keep the money and profit, but if someone does hit a hole in one, the insurance company is then liable for any prizes paid out. That way the tournaments are able to continue running promotions and in the end everyone wins, especially the individual walking away with the prize.