This is by far the most asked question here at US Hole In One, and it is also one of the easiest for our tournament consultants to answer. Though commonly referred to as "insurance", hole in one prize coverage is in fact a contract between an event organizer and a coverage provider, such as US Hole In One, wherein the risk associated with running the contest is effectively transferred.
Let's say, for example, that you were running a golf tournament and you wanted to award a brand new car to any golfer who successfully made a hole in one at a particular par three hole. If you did not purchase contest coverage and someone aced the hole, you would be responsible for footing the bill for the new car which is quite a risky proposition. However, this time let's assume you transferred that risk and purchased "hole in one insurance" from us. In the event some lucky golfer struck a winning
shot, we would pay for the car and you would get to happily hand over the keys knowing that the whole contest only cost a few hundred dollars as opposed to many thousands.
The reason prize coverage is so often incorrectly referred to as "insurance" is because often times the coverage provider is backed, or underwritten, by a large insurance company. This separate relationship serves to protect both the hole in one contest coverage provider and its customers by guaranteeing that claims can always be paid in full and on time. While as an event organizer you never actually purchase an insurance policy, auxiliary protection in many cases is in place and thus creates the misnomer of hole in one insurance.
If you have any questions regarding hole in one prize coverage or want to learn more about the highly-rated underwriters US Hole In One works with to guarantee your prize, simply ask one of our knowledgeable tournament consultants.