Liability Insurance Program and Exposures for Golf World Business

This report analyzes the liability exposures of Golf World, a business operating a driving range and mini-putting facility, and recommends a comprehensive liability insurance program. The analysis identifies ten key liability exposures, including severe weather and vandalism, product liability, pollution, employee claims, property damage and injury, cyber breaches, damage to equipment, property loss and business interruption, professional liability, and contractual liability. The recommended insurance program includes a CGL policy with all four sections (BI/PD, Personal Injury, Medical Payments, and Tenants Legal Liability), along with higher limits, to cover premises, products, operations, and completed operations exposures. Furthermore, the report discusses the importance of property insurance, commercial auto insurance, commercial crime policies, inland marine coverage, workers' compensation, and pollution liability insurance to mitigate various risks. The report also outlines the five sources of information that underwriters use to assess liability risk: monetary condition, business activities, management quality, length of time in business, and organizational structure, providing a holistic view of Golf World's risk profile and insurance needs.

Contents
TEN LIABILITY EXPOSURES RELEVANT TO GOLF WORLD BUSINESS.......................................................2
LIABILITY INSURANCE PROGRAM FOR GOLF WORLD............................................................................4
FIVE SOURCES OF INFORMATION USED BY UNDERWRITERS TO ASSESS THE LIABILITY RISK................5
REFERENCE-...........................................................................................................................................6

TEN LIABILITY EXPOSURES RELEVANT TO GOLF WORLD BUSINESS
Golf courses and venues are typically the scene of calmness, fractured only by the tone of birds and
a tall order to the green. We are lucky when it comes to some of the most lovely golf courses and
facilities, with both participants and families adding to its greens. But like any company, golf courses
are subjected to distinctive hazards that can affect their activities significantly ("Par for the course:
golf club premiums", 2019). There are ten risk variables we need to discuss about-
1. Severe weather and Vandalism- Susceptible to several threat variables, such as wind
damage and potentially destruction of property, are the surfaces of both tees and greens.
Ensure that the policy comprises tee and green coverage and that the strategy involves the
formulation "all playing surfaces."

2. Product Liability Exposure- If the business provides the members with items; it is the
obligation of the business to guarantee that its products are safe. In brief, they must abide
by the legislation of product liability ("What is Product Liability - Protect Your Business |
LegalVision", 2019). This includes selling of items brought in or produced in the premises or
serving of foods and beverages.
3. Pollution-The sweeping emerald green hills of the course are not a natural product on its
own. Chemical substances used to maintain green bright and tidy produce pollution
exposures that can be neglected frequently. But for over-spraying, one needs to check
further than the normal protection of herbicides and pesticides as there may be a need to
safeguard the course from other natural hazards such as reservoir seepage.
4. Employee Claims- On aggregate, the staffs are projected to accuse three out of five
companies. Like any other company, golf courses are susceptible from the fore-hire method
to a feasible labour decrease. Assertions can come from just about anything, like somebody
just taking the improper way a "joke" and being insulted. Furthermore, important staff (such
as managers, executives and other committee members) may be at enhanced danger due to
potential segregation.
5. Property Damage and Injury- It is easy for your customers to provide a valet service at your
golf course or facility, but damaging a car or causing serious harm is a very true danger
connected with this comfort. One should obtain a liability insurance policy to safeguard
the golf course or club from third-party litigation.
6. Cyber Breach- Witnessing a security breach is not a matter of "if" but instead a matter of
"when." Representatives or staffs who bequeath their confidential, personal details to their
employers and the possibilities for mismanaging this information may endanger the golf
course or club. Indeed, if this data is ever lost, robbed or impaired, the proprietor may be
required by law to warn those affected by the infringement.
7. Damage to Equipment- Golf clubs generally have significant exposure to destruction of their
golf carts and servicing facilities induced by crashes on the course itself as well as ordinary
fire and property destruction hazards. In order to reduce the general economic effect of
devaluation, the proprietor should receive price protection on both the vehicles and the
servicing facilities.
8. Property Loss and Business Interruption- An essential part of the insurance policy is suitable
asset protection. If owner loses the clubhouse, a multi-million dollar loss with company
interruption and loss of revenue, such as loss of current golfers and prospective fresh
golfers, could possibly result. Ensure that the brief and long-term income of the club is
correctly guarded. Limits of property should fulfil or exceed the latest evaluation of the club.
9. Professional Liability- Contractual responsibilities resulting from the mistakes, irresponsible
deeds or oversights of a professional during his or her work exercise. Any omissions on the
golf course intentionally or unintentional can lead to such risks.
10. Contractual Liability- Contractual liability is the responsibility one acknowledges as a
consequence of a contractual obligation on behalf of another party. One might have learned
it in some lawful environments called a "hold harmless" provision. As they operate with
another party, the proprietor basically assumes the danger. At Golf courses, owners are
liable for the participants because of contract with them.

LIABILITY INSURANCE PROGRAM FOR GOLF WORLD
1. GL Insurance- Considering the amount of tourists on the site, GL premises liability dangers
are important. Public security is a significant problem as slips, falls and flying golf balls can
hurt tourists. Golf carts can overturn or clash with things that are standing. Before using the
equipment or leasing a golf cart, several courses require clients to enter harmless contracts.
It is essential to perform background checks on teachers if classes are given to kids ("Golf
Course Liability Insurance", 2019). There should be a driving range physically isolated from
the remainder of the plant, with obstacles preventing balls from flying into freeways and
nearby houses. Private golf clubs may be exposed to bodily injury due to discrimination,
persona malice, fake conviction or detainment.
2. Property Insurance- If restricted to a clubhouse unit and servicing facility, estate damage
can be very negligible. Exposures will improve if there is a cafe, super store or service center.
As several golf courses are situated in remote regions, the distance from government fire
safety and fire departments is crucial. For the procedure, installation should be latest and
appropriate. Chemical substances such as insecticide, pesticide or herbicide used to preserve
the premises may be combustible and should be kept independently from other activities.
Robbery can be an extra problem if there is a pro store. Golf carts can be powered by
electricity or fuel. If fuel is used, it is necessary to isolate the fuelling procedure from other
installations. They can discharge combustible hydrogen gas while being replenished if
vehicles are driven electrically. It is necessary to decontaminate the charging space well.
After hours, the property should be shielded from security breaches. Unless important
operations occur inside, enterprise earnings and additional expenses will be restricted.
3. Commercial Auto Insurance- The access to automotive responsibility is usually restricted to
employed and non-owned cars for staff conducting orders. MVRs must be instructed on all
riders if there are any valet facility, cab, transportation and pick-up or distribution facilities.
Any cars possessed must be retained with all operations logged on a periodic basis.
4. Commercial Crime Policy- Susceptibility to violence is caused by worker deceit, cash and
securities. All staff managing cash should be subject to inspections. To ensure that products
do not slide out of the back gate, a stock surveillance program should be in effect. All duties
for charging, accounting and compensation should be segregated and documents should be
regularly matched. It is necessary to perform periodic internal audits.
5. Inland Marine Coverage- Inland water risk comes from receivable bills, computers,
machinery from the company, and precious documents and documents. Awareness to
Bailees results from the managing of client products, such as those needed for service,
maintenance or during attending the facility and assets remaining in locker rooms. Insurance
of golf carts must be taken into account. The machinery of contractors is used for the
maintenance of both houses and yards.
6. Workers Compensation- Reimbursement dangers for employees may be big. If the golf
course performs its own surface servicing and compound processes, employees may
experience cuts, injuries, contact dermatitis or breathing disorders.. Professionals and
teachers, golfers and others who may be engaged in associated roles will have the ability to
slip, fall, strain, sprain and be struck by golf balls or machinery that are accidental.
7. Pollution Liability Insurance- Pollution liability insurance protects a company against liability
from damage caused by hazardous waste materials. It covers third party charges against

physical injury and harm to assets induced by toxic waste products produced during the
business activities of a corporation.
FIVE SOURCES OF INFORMATION USED BY UNDERWRITERS TO ASSESS
THE LIABILITY RISK
1. Monetary condition- In order to decide economic stability, an insurance underwriter will
typically require a sample of the consolidated financial statements of a business. They will
use this data to determine a variety of financial ratios that can be used in sector to measure
comparable businesses (Freedman, Reynolds, Hartford & Team, 2019).
2. Business activities- Often a business' sector will make a significant contribution to the
understanding of danger among insurers. When establishing an view of a prospective fresh
customer, insurers will often take into account any latest media disputes, along with their
own underwriting knowledge of businesses in that industry.
3. Management Quality-Insurance providers will analyze the official skills and practical
experience of the management board of a business. Managers with elevated government
perceptions or a background connected with disturbed organizations will be regarded
closely, as this can be seen to improve the danger inherited from an executive role.
4. Length of Time in Business- With regard to insurers, the longer an organization operates in
sector, the greater the risk. While evidence of a good track record is perfect, underwriters
will investigate any latest major changes influencing the business; i.e. partnerships or
affiliates, shifts in stock holdings, and shifts in the economic situation of the business.
5. Organizational structure-The greatest risk to insurance companies is presented by all
businesses listed on the inventory market. Registered organizations have more legal duties
than their private rivals and are susceptible to a spectrum of adherence and legislative
supervision. In addition, they are subjected to many external variables that may affect the
company activities for which leadership is unable to regulate.

REFERENCE-
Par for the course: golf club premiums. (2019). Retrieved from
https://www.insurancejournal.com/magazines/mag-features/2006/08/21/72306.htm
What is Product Liability - Protect Your Business | LegalVision. (2019). Retrieved from
https://legalvision.com.au/what-is-product-liability-how-can-you-protect-your-business-
from-it/
Golf Course Liability Insurance. (2019). Retrieved from
https://www.generalliabilityshop.com/general-liability-programs/golf-courses/
Freedman, A., Reynolds, D., Hartford, T., & Team, R. (2019). What Factors Should Underwriters
Consider? - Risk & Insurance. Retrieved from https://riskandinsurance.com/what-factors-
should-underwriters-consider/