How Is Hole In One Insurance Priced?
As you probably already know, the price of any kind of insurance is based on risk. For example, for your car insurance, your insurance company attempts to determine what risks are associated with you operating an automobile. They look at what type of car you drive, how long you've been driving, whether you've ever had any accidents or received any speeding tickets. After analyzing all types of information, they determine a price for your insurance policy.
Hole in one insurance operates in a similar fashion. The difference is that we look at different variables that make up a hole in one contest. We need to know how many players are participating in the contest, how long (i.e. how difficult) the par 3 hole is, and how expensive your hole in one prize is. With these three pieces of information, our underwriters can determine the likelihood of someone making a hole in one at your event and winning a prize. From those odds, a price is determined for your hole in one contest coverage.
We are frequently asked what variables can be changed to make coverage more affordable. The answer lies in the three pieces of information mentioned earlier. For example, if you chose a longer par 3 hole, it would be more difficult to make a hole in one, thus the likelihood of a winner decreases and so does your price. Or you could choose a prize that isn't as expensive. If your prize is cheaper, your price will be too. Finally, the number of participants plays a critical role in determining price. While it is difficult to alter this figure, keep in mind that if you have more players than last year, this year's coverage fee will be higher. After all, the more players participating means more chances for your tournament to come out a winner!