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Hole-In-One Insurance


Hole-In-One Insurance is a type of prize indemnification insurance commonly used during golf tournaments. This insurance policy covers the tournament host if a participant successfully hits a hole-in-one during the event and claims the prize, which can be cash, a car, vacation, etc. Essentially, it allows organizers to offer exciting, pricey rewards without the financial risk should a participant actually achieve a hole-in-one.


The phonetic pronunciation of “Hole-In-One Insurance” is: hohl – in – wuhn in-shoo-r-uh-ns

Key Takeaways

  1. Hole-In-One Insurance is a type of prize indemnity insurance that allows golf tournaments or promotional events to offer large cash prizes for making a hole-in-one, without the risk of payout if a participant achieves this feat. The insurance company assumes the risk and pays the prize if a hole-in-one is made.
  2. This type of insurance is usually purchased for charity tournaments or promotional events where large prizes can significantly increase participant interest and engagement. The cost of insurance will depend on factors like the number of participants, the length of the hole, the prize value, and more.
  3. It’s important to read the policy details closely when purchasing Hole-In-One Insurance. There can often be specific rules or restrictions, such as a minimum yardage for the hole, the required number of witnesses, and more. Generally, insurers will not cover hole-in-ones made on par-3 holes that are less than 100–120 yards.


Hole-In-One Insurance is significant in the business/finance realm as it provides financial coverage or protection for events where a large prize is offered if someone achieves a hole-in-one during a golf event. As these occurrences are unexpected and rare, hosting organizations or businesses could potentially face considerable financial costs if a hole-in-one is achieved. By having this insurance, they can offer these attractive promotions to bring in more participants or audiences without the risk of having to pay out of pocket for the prize. This kind of insurance can also motivate participants, increase the excitement of the event, and potentially attract more sponsorship opportunities, thereby generating additional revenue.


Hole-In-One Insurance serves a unique purpose in the realm of event planning, specifically towards golf tournaments or competitions. Essentially, it’s a type of prize indemnification insurance, established to enable organizers to offer participants high-value prizes without assuming the financial risk if a contestant successfully hits a hole-in-one during the event. These prizes can be quite substantial, such as luxury cars, trips, or large sums of money. Therefore, this insurance comes in handy to reimburse the cost of the award if needed, hence alleviating the burden of potentially significant expenses from the tournament hosts.Such an insurance product not only helps in augmenting the appeal, excitement, and buzz surrounding a golf tournament but it is also a smart financial move that ensures the financial health and sustainability of the event. If a participant hits a hole-in-one and claims the extravagant prize, the insurance company pays out the prize’s value. By paying a premium to the insurance company, event organizers are essentially buying peace of mind where they can run events with attractive prizes, yet without any financial peril associated with a winner.


1. Golf Tournaments: One of the most common uses of hole-in-one insurance is at charity golf events or professional tournaments. Organizations that host these events often offer substantial prizes, like a brand new car or a large sum of money, to any golfer who hits a hole in one during the tournament. To protect themselves from a financial setback, the organizers purchase hole-in-one insurance.2. Retail Promotions: Some retailers and car dealerships offer special promotions where they invite customers to take part in activities, such as throwing a basketball in a hoop from a certain distance, scoring a goal in a soccer net from a specific location, or getting a hole in one in a small golf setup. If the customer is successful, they win a big-ticket item like a car, holiday package, or expensive item from the store. The businesses mitigate their risk of having to pay out these expensive prizes by purchasing hole-in-one insurance.3. Broadcasting Companies: During certain sports events, broadcasting companies sometimes run promotional contests where viewers are given a chance to win a large sum of money if a specific event occurs during a game, like a hole-in-one in golf or a specific sequence of touchdowns in a football game. Broadcast companies often take out hole-in-one insurance to cover the cost of the prize in case the unlikely event actually happens.

Frequently Asked Questions(FAQ)

What is Hole-In-One Insurance?

Hole-In-One Insurance is a form of prize indemnity insurance. It is generally used by businesses or organizations who wish to offer a large reward, such as a car or large cash prize, during a golf event in the event of a participant making a hole-in-one.

Why would an organization need Hole-In-One Insurance?

The insurance provides coverage for the company hosting the event if a golfer hits a hole-in-one during the event, and the company is obligated to give a large prize. The insurance policy covers the cost of that prize.

How does Hole-In-One Insurance work?

Once the insurer and the insured agree upon the details including premium, the number of participants, the difficulty of the hole, and the value of the prize, the insurer will pay out the value of the prize if a player hits a hole-in-one during the insured event.

What are the typical costs of Hole-In-One Insurance?

Costs can vary depending upon the value of the prize you are covering, the skill level of participants, the length of the hole and the number of participants. Quotes can be obtained through insurance providers.

What factors might affect the premium of the Hole-In-One Insurance?

The premium of the Hole-In-One Insurance can depend on several factors such as the number of participants, the length of the hole, the value of the prize, and the type of event.

Is Hole-In-One Insurance limited to golf events?

While primarily associated with golf events, similar policies may be offered for other sports, for instance, a basketball event where a big prize is awarded for a half-court shot.

Can Hole-In-One Insurance cover multiple holes or events?

Yes, coverage can be arranged for multiple holes or at multiple events. However, terms and additional costs will depend on the individual policy and should be discussed with the insurer.

Where to purchase Hole-In-One Insurance?

Most major insurance companies or brokers that specialize in event or prize indemnity insurance can provide Hole-In-One Insurance.

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