Leading global insurance broker, risk management services and consulting firm Gallagher has launched a new parametric insurance product designed to protect golf courses from damage and closure due to extreme weather.
Heavy rainfall, as well as extreme weather events such as hurricanes and storm surges, can cause flooding and pose significant challenges for golf courses. Jointly with FloodFlash, a NormanMax company, Gallagher has launched a specialised parametric solution to help protect against this exposure.
The product provides up to $10 million of flood coverage per golf course and enables clients to customise trigger depths and payout amounts. If water reaches a pre-agreed depth, the coverage will pay out the pre-agreed payout, which can be used to cover any losses related to the flood. It is designed for rapid claim approval and payout; FloodFlash aims to approve claims within 48 hours and aims for the whole claims process to be completed within 28 days.
The payout can be used for any financial losses related to the flood event, irrespective of the nature of the loss or damage. This includes physical damage to the golf course itself, including tees, greens, shrubs, and structures; economic losses, including loss of footfall and delayed; repairs and clean-up costs, including the clubhouse and other outbuildings.
When a client has purchased a policy, FloodFlash will install sensors at points around the course predesignated by the client, allowing clients to protect what matters, and facilitating a faster claims process. Measurements are taken with millimetre resolution, enabling claim approval within 48 hours for most scenarios.
Gallagher’s specialist parametric team will work with clients to ensure that the product provides comprehensive cover complimenting any traditional insurance golf course owners may have in place and provide essential additional cover for natural catastrophes and weather events.
Commenting on the launch of the new product, James Bosley, Head of Climate Strategy, Carbon Insurance & Parametric Solutions at Gallagher said: “Our new parametric golf course product provides clients with easy to access insurance to protect them from extreme weather which is a major problem for golf courses in certain geographies.
“Golf courses are often built nearby water features such as rivers, lakes or on the coast which makes then highly susceptible to flooding. Clearly the course itself is the most valuable asset for the business, as without it customers cannot use the facility, and whilst traditional insurance is readily available for the clubhouse and associated assets, cover for extreme weather damage to the course is less available and often excludes extreme weather events.
“The way this product is designed to pay out on pre-agreed parameters means golf course owners can be confident they are protected from the financial risks of flooding and closure.
John Leckie, CEO at FloodFlash, added: “We are delighted to launch this joint initiative with Gallagher combining our unique sensor-based approach with Gallagher’s parametric expertise. Golf courses often face gaps in coverage when it comes to flood; FloodFlash can fit alongside existing coverage to provide a solution tailored to the client that gives them reassurance in the event of a flood.”
Headquartered in Rolling Meadows, Illinois, Gallagher offers client service capabilities in more than 130 countries around the world through a network of correspondent brokers and consultants. For further information, visit www.ajg.com/uk